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In June 2010, Washington adopted “economic nexus” for businesses that report under apportionable business and occupation tax classifications. For these classifications, your business does not need to have a physical presence to have nexus and be subject to Washington tax.

With the adoption of economic nexus, Washington also changed the way businesses apportion their taxable income between Washington and other states and countries.

important Businesses making retail or wholesale sales continue to be governed under the physical presence nexus standards outlined in RCW 82.04.067(6) for such sales. If physical presence nexus standards apply then the business and occupation (B&O) tax under the retailing and wholesaling classification and the obligation to collect and remit retail sales tax on sales to Washington buyers will apply.

Note that a business may have physical presence nexus, but not economic nexus and vice versa.

Businesses in Washington

Businesses outside of Washington

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How do I register my business in Washington State?

Register your business online where you will find step-by-step instructions, information and resources, or call 1-800-647-7706.

How can I get more information?

You may submit concerns, questions, or comments about Economic Nexus or single-factor receipts apportionment to: DORNexus@dor.wa.gov.