Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

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Staffing industry

Important: Effective Oct. 1, 2025, most temporary staffing services are subject to retail sales tax. There is an exception for temporary staffing provided to hospitals.

For more information, please see our Special Notice and our Services newly subject to retail sales tax webpage.

This guide will assist the staffing industry in determining how to report their gross income and when to collect state and local retail sales tax. For additional information or answers to questions about Washington excise taxes, please contact us.

Updated March 2020

 

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