Use tax

Use tax is a tax on the use of goods or certain services in Washington when sales tax has not been paid. Goods used in this state are subject to either the sales or use tax, but not both.

Use tax is based on the value of the article or service and includes charges for labor, materials, freight, handling, or any other amount paid or accrued when separately stated on an invoice.

Examples of when use tax is due include:

  • Mail order, telephone, or Internet purchases from people or businesses that did not collect retail sales tax.
  • Goods purchased with a reseller permit certificate and then used or consumed.
  • Tangible personal property gained with the purchase of real property.
  • Goods purchased in a state with no sales tax or a tax rate lower than Washington’s.