Washington Contractor Sales Tax 2026

Washington sales tax rate for contractors

• Combined rate: 6.5% + local (~9.3% combined avg) + 0.471% B&O
• Construction labor taxable: YES - labor is taxable
• Tax authority: Washington Department of Revenue

How Washington treats contractor labor

WASHINGTON TAXES CONTRACTOR LABOR. Retail Sales Tax applies to total construction contract (labor + materials) on speculative builders. Custom construction taxed differently.

Washington-specific rules

Washington B&O tax (0.471% retailing) AND Retail Sales Tax both apply. Speculative builders vs. custom construction treated differently. Tacoma, Seattle have additional local taxes.

Washington mechanics lien rights

Beyond sales tax, Washington contractor billing must respect the mechanics lien deadline of 90 days from last work. Preliminary notice: Pre-claim notice required within 60 days of first furnishing for residential.

Washington contractor licensing

Washington Department of Labor and Industries (L&I) - required for licensed work. $117 (initial) + $12K bond + insurance. Board: https://www.lni.wa.gov.

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Washington contractor resources by trade

• Washington HVAC Cost
• Washington Plumbing Cost
• Washington Electrical Cost
• Washington Roofing Cost
• Washington Painting Cost
• Washington Concrete Cost