2025 Washington State Sales Tax Update

For marketing and digital agencies that conduct services in Washington state, a new tax law may impact your business.

Starting October 1, 2025, Washington began applying retail sales tax to a broader set of digital and technology-related services under Senate Bill 5814.

Services Newly Subject to Sales Tax

  • Digital advertising, including:
    • Online referral services
    • Search engine optimization (SEO)
    • Campaign planning and analytics
  • Custom website development
  • IT support and training
  • Data processing services
  • Live virtual presentations and webinars

If your business provides any of these services in Washington, you may be required to collect or pay sales tax as of October 1.

Next Steps to Prepare

1. Determine whether you have nexus in Washington

Review your business activity in Washington to determine if you meet the state’s registration thresholds.

  • If you are physically located in Washington, you are required to register and collect sales tax regardless of sales volume.
  • Remote sellers must register if they exceed $100,000 in gross retail sales or 200 separate transactions with Washington customers in the current or prior calendar year.

2. Register with the Washington Department of Revenue

If you are not already registered, you can create an online account with the department of Revenue for the State of Washington.  This account will allow you to register your business and file/remit the quarterly taxes. 
My DOR: Sign In

3. Determine who will handle filings

Connect with your accountant to decide whether they will manage your Washington filings or if your internal team will take responsibility. See below for services Anders can provide.

4. Update your invoicing and billing systems

Work with your accounting team to ensure your systems are ready to begin collecting sales tax on the newly taxable services. This includes showing the tax on invoices sent to clients starting October 1.

5. Review your service offerings and contracts

Identify any recurring contracts with Washington-based clients and proactively communicate that sales tax will be added as a separate line item on their invoices starting October 1. This will help ensure transparency and avoid confusion when the new charges appear.

Support Available from Anders

State & Local Tax (SALT) Team

If you need assistance with registration or filing, Anders SALT team is available to help.

We offer the following services with quotes included:

  • State registration services – $1,250
  • Sales tax filings – $250 per filing
Contact the Anders SALT Team
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