Services newly subject to retail sales tax

As of Oct. 1, 2025, a new law (ESSB 5814) requires that certain services now be taxed when sold. If you buy or sell these services, retail sales tax must be applied.

What does this mean for you

• Sellers: If you provide one of the services listed below, you must start collecting sales tax on your invoices and submit it when filing your taxes.
• Buyers: Your vendor should now include sales tax on bills for these services. Read more on our “Why am I being charged sales tax now?” page.

Watch video: Services subject to retail sales tax as of Oct. 1, 2025 (1:54)

Download an informational flyer (PDF)

Services now taxable

The table below lists a summary of the services newly subject to retail sales tax effective Oct. 1, 2025.

• Service: Click any service name to go to its detailed description page. Each page explains what’s included and what’s excluded.
• Interim Guidance: Links to detailed guidance with examples based on your feedback.

Service What's included What's NOT included Interim Guidance Advertising services Ad design, ad placement, campaign planning, lead generation, and acquisition of advertising space on the internet, and more. Web hosting, domain registration, certain newspaper/in-print advertising, radio and television ads, fixed signage, out-of-home ads, and more. Interim guidance for advertising services Information technology (IT) services Help desk services, network support, training, IT consulting, data processing, and data entry. Web hosting, domain registration, and payment processing services. Interim guidance for IT services Custom website development Website design, development, and support. Web hosting and domain registration services. Interim guidance for custom website development Live presentations In-person or via the internet workshops, webinars and courses with real-time interaction. Classes by preschools, elementary, secondary, and higher education as part of their accreditation, performances, sports events, tutoring and more. Interim guidance for live presentations Interim guidance for live presentations for schools and higher education Security, investigation & armored car Security guard, background checks, armored car, investigation, and security systems services. Locksmith services. Interim guidance for security services Temporary staffing Supplying workers to businesses under contract or on short-term assignment. Hospital staffing, direct hires, independent contractors, paymaster, and third-party outsourcing services. Interim guidance for temporary staffing Custom software & customization Access to and use of custom software, and customization of prewritten software. Unmodified off-the-shelf software. Interim guidance for custom software

Changes to Digital Automated Services (DAS)

Removed exclusions: Some services that were excluded under DAS (advertising, live presentations, data processing, and services provided through primarily human effort) are no longer excluded.

Added exclusion: The law now specifically excludes telehealth/telemedicine services from retail sales tax.

For more details, see our Interim Guidance on DAS changes.

What you should do if your services are now subject to sales tax

1. Visit our sales tax tools resources page for help finding the correct sales tax rate to charge.
2. Let your customers know that sales tax is now required for certain services.
3. If you have existing contracts or service agreements, check whether the new tax rules apply. For more details, review our Interim Guidance statement on existing contracts.
4. Start adding sales tax to your invoices as applicable.
5. Report and submit sales tax when you file your taxes.

If you are unsure how the rules apply to your specific case, you can submit questions to Rulings@dor.wa.gov.

Can these services be resold?

Yes, in some cases the services listed above can be resold. If a buyer plans to resell these services, they must provide a reseller permit to the seller. Then, the seller does not need to collect sales tax.

Resources

Frequently Asked Questions

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Interim guidance and what’s next with rule-making

Listening sessions and online survey feedback summary (PDF)

Learn more about sales tax

Introduction to sales tax video (32:10)

Introduction to sales tax webinars

Sales and use tax rates

Sales and use tax rates tools