Purpose

• Washington state does not have an income tax. The retail sales tax is the state's primary source of tax revenues.
  
  

State Tax

• The sales tax rate is 6.5 percent and is charged on all qualified retail sales in Washington.
  
  

Local Tax

• All counties and many municipalities charge a retail sales tax in addition to the state rate. Generally, rural counties have a lower tax rate, while large population centers charge a higher rate. For example, the total sales tax in the city of Seattle is 9.5 percent.
  
  

Exemptions

• The sales tax is not charged on prescription drugs, newspapers and most food. The sales tax does apply to prepared food, such as deli sandwiches, candy that does not contain flour, gum and bottled water.
  
  

Selective Tax

• A selective tax is charged in addition to the regular sales tax for specific items including beer, cigarettes, soda and carbonated drinks. The rate varies depending on the item. For example, the tax is 28 cents for a six-pack of beer, while the tax on soda is 2 cents per 12 ounces.
  
  

Tax Deduction

• Washington state residents who itemize on their federal tax returns may deduct the state sales taxes paid during the year. A fixed amount from a deduction table may be used or receipts can be saved and itemized.