Just released:

The 2025 KPMG US CEO Outlook – learn what’s shaping CEO decision making

Get the report
Just released:

The 2025 KPMG US CEO Outlook – learn what’s shaping CEO decision making

Get the report

Washington State: Sales tax and B&O tax bills enacted

Expanded retail sales tax base, increased tax rates under B&O tax, and repealed B&O tax preferences

Download PDF
Share
May 28, 2025

The Washington state legislature recently passed several revenue-raising bills to address a looming budget deficit. On May 20, 2025, the governor took action on these bills, signing some and partially vetoing others. Three measures are particularly significant for businesses operating in Washington, including:

  • Senate Bill 5814, which expands the retail sales tax base to include certain services
  • House Bill 2081, which increases the tax rate for multiple classifications under the business and occupation (B&O) tax
  • Senate Bill 5794, which repeals several B&O tax preferences

Read a May 2025 report prepared by KPMG LLP that provides more information on each of these bills.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline