Collect tax in Washington

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in Washington. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

According to the state, sellers with sales equal to or exceeding the sales number thresholds must register for a Washington sales tax permit, collect sales tax on sales that ship into Washington, and remit that sales tax to the state.

Prior to March 14, 2019, remote sellers could also have economic nexus if they had 200 or more transactions in the state. And, effective July 1, 2019, SSB Bill 5581 eliminated both the notice and reporting requirements established in the state’s 2018 Marketplace Fairness law in addition to the 200 transaction trigger. If you previously registered because you met the 200 transaction threshold, assess your sales to see if you exceed the 100,000 USD threshold. If you do, continue to collect and submit retail sales tax.

Threshold: 100,000 USD

Period: Previous or current year

Included transactions: Gross sales

Effective date: October 1, 2018

Register to collect tax

Register for sales tax in Washington at the tax authority. Read more about registering for sales tax in the US in our guide.

After you’ve registered to collect tax in Washington, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in Washington.

Learn how to add your registration in the Dashboard.

How we calculate taxes

Stripe calculates the taxes that apply to your customer’s location.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports.

Exports

The tax transaction data export provides a comprehensive and aggregated view of transactions by location, including a breakdown of individual tax amounts. Learn more about tax reporting exports.

Location reports

Location reports offer a summary of transaction and refund data for specific US locations and align with Washington filing requirements. You have the option to report on an annual, quarterly, or monthly basis.

Reporting-specific considerations:

• Washington requires wholesale sales to be identified because they’re subject to a lower tax rate instead of being completely exempt. When a report contains any customer-exempt transactions, it displays a warning message. For a detailed breakdown of each transaction, export the transaction data.

Filing

You are responsible for filing and remitting your taxes to Washington. Stripe doesn’t file taxes on your behalf. For automating filing in the US, we recommend using TaxJar’s AutoFile solution.