Taxes / State tax rules / Washington
Selling on eBay, Poshmark or Etsy from Washington: sales tax and 1099-K rules
On a marketplace sale delivered to Washington, the marketplace facilitator collects retail sales tax, but the Department of Revenue says a remote marketplace seller with more than $100,000 of Washington gross receipts, marketplace sales included, must still register to report business and occupation (B&O) tax and files returns that deduct facilitated sales. Washington does not currently have an individual income tax, so there is no Washington income tax return for a 1099-K; the Department of Revenue says a new 9.9% tax on individuals with adjusted gross income over $1 million begins January 1, 2028.
General information, not tax advice. Check with a tax professional about your own situation.
Checked against the official pages listed below on .
Washington in short
- General sales tax:
- Yes, 6.5% state rate
- Marketplace facilitator law:
- Yes: RCW 82.08.0531, since Oct 1, 2018
- When a marketplace must collect:
- more than $100,000 in combined gross receipts sourced or attributed to Washington, or physical presence, or marketplace sellers with physical presence in Washington, or being organized or commercially domiciled there
- Form 1099-K:
- No state personal income tax
Who collects the tax on a marketplace sale
The facilitator collects and reports sales tax on all retail sales sourced to Washington made through its marketplace, plus other taxes and fees on those sales since January 1, 2020. Its commission and fee income is subject to B&O tax under the Service and Other Activities classification.
If you sell only through marketplaces
A seller making all retail sales through a facilitator does not need to collect sales tax if it has proof the facilitator does so, but the Department says it still files and pays B&O and other taxes if it meets a registration threshold. Remote sellers register past $100,000 of combined Washington gross receipts, counting marketplace sales; sellers with physical presence register at any level.
Registration, resale certificates and what changes when you also sell direct have their own page: Washington: seller's permit and resale certificate rules.
The law: RCW 82.08.0531, effective .
"If you make all of your retail sales through a marketplace facilitator, you do not need to collect and submit retail sales tax if you have proof that the facilitator is doing so on your behalf."
"Calculate the threshold using all of your retail sales to Washington customers, including sales made through a facilitator, through your own website or otherwise."
"Beginning October 1, 2018, marketplace facilitators subject to a tax collection obligation under RCW 82.08.052 (1) or (2) must collect and remit to the department retail sales tax on all taxable retail sales"
Sources: Marketplace sellers; Marketplace facilitators; RCW 82.08.0531, Marketplace facilitators.
Washington's sales tax
The state retail sales tax rate is 6.5%, and a local rate set by city or county is added, based on where the customer receives the goods. Washington also levies a business and occupation (B&O) tax on gross receipts, which matters for marketplace sellers over the registration threshold.
"The state tax rate is 6.5%."
Sources: Retail sales tax; Marketplace sellers.
Form 1099-K: Washington and the federal test
The Department of Revenue says Washington does not currently have an individual income tax. It also says a new 9.9% income tax, established by the 2026 Legislature through Senate Bill 6346, will apply from January 1, 2028 to individuals and joint filers with adjusted gross income over $1 million, with the first returns due in April 2029.
"Washington does not currently have an individual income tax."
The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." (Understanding your Form 1099-K, reviewed ). The Instructions for Form 1099-K count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in Form 1099-K for resellers.
Sources: Income tax.
Worked examples
State tax on a $40 marketplace sale to Seattle
At the 6.5% state rate, a $40.00 taxable item carries $2.60 of state sales tax, plus the local rate where the buyer receives it. The facilitator collects both.
Marketplace sales push a remote seller into B&O registration
A remote seller has $95,000 of Washington marketplace sales and $10,000 of website sales in 2026. Counting both, $105,000 is over $100,000, so the Department says it must register to report B&O tax and collect sales tax on the website sales. On the return it reports $105,000 of gross retail sales under Retailing B&O and takes the Gross Sales Collected by Facilitator deduction for the $95,000, plus a No Local Activity deduction if it lacks B&O nexus.
Waiting for the facilitator's monthly report
Facilitators send each seller its Washington gross sales for the prior month by the 15th of the following month. A seller whose October 2026 report is late may estimate its B&O using a method the Department approves or requires.
Edge cases and details
- Washington's $100,000 test counts all Washington income, including retailing, wholesaling, service and other apportionable activities, and exempt sales, not just taxable retail sales.
- Once a seller meets the threshold, it collects and reports for the rest of that year and all of the next; if it did not meet it the year before, it starts on the first day of the month at least 30 days after meeting it.
- A seller using a Streamlined Sales Tax certified service provider for retail sales tax still files its own Washington excise tax return to report B&O tax, the Department says.
- Facilitators may report facilitated sales under a separate tax reporting account from their own sales, and claim a retailing B&O deduction for facilitated sales, which has no matching retail sales tax deduction.
- Washington's new income tax, effective January 1, 2028, applies only to adjusted gross income over $1 million, according to the Department.
What to do
- Total all your Washington gross receipts, marketplace and direct, taxable and exempt, for the current and prior year; past $100,000 the Department expects B&O registration even if marketplaces collect all the sales tax.
- Save each facilitator's monthly Washington sales report; the Department tells sellers to use it to calculate B&O and other taxes.
- Before filing a Washington excise return, read the Department's marketplace seller page on the Gross Sales Collected by Facilitator and No Local Activity deductions, and check with a tax professional.
Common questions
Do I owe Washington B&O tax if I only sell on marketplaces?
The Department says a seller that makes all retail sales through facilitators does not collect sales tax but still files and pays B&O and other taxes if it meets a registration threshold. For remote sellers that is more than $100,000 of combined Washington gross receipts, marketplace sales included.
How do marketplace sales go on a Washington excise tax return?
The Department says to report gross marketplace and direct Washington retail sales under Retailing B&O, take the Gross Sales Collected by Facilitator deduction for facilitated sales, and claim a No Local Activity deduction if you have no B&O nexus.
When did Washington marketplace facilitators start collecting?
RCW 82.08.0531 requires collection beginning October 1, 2018, and extends it to other taxes and fees on marketplace sales from January 1, 2020.
Does Washington have a 1099-K rule or income tax?
Washington does not currently have an individual income tax. The Department says a 9.9% tax on adjusted gross income over $1 million starts January 1, 2028.
Related
- Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules
- Washington: seller's permit and resale certificate rules
- Virginia: sales tax and 1099-K rules
- West Virginia: sales tax and 1099-K rules
- Form 1099-K for resellers: the federal test
- Do eBay's fees apply to the sales tax a buyer pays?
- Where each selling app keeps its sales report
General information, not tax advice
This page summarizes Washington's own published pages and statutes as read on , and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department.
Sources
Official pages this page is built from, with the day each was read.
- Washington Department of Revenue: Marketplace sellers; read . $100,000 threshold counting marketplace sales, B&O registration, return deductions, monthly report.
- Washington Department of Revenue: Marketplace facilitators; read . Facilitator registration triggers, reporting, B&O on commissions, 15th-of-month report.
- Washington State Legislature: RCW 82.08.0531, Marketplace facilitators; read . October 1, 2018 collection duty; other taxes and fees from January 1, 2020.
- Washington Department of Revenue: Retail sales tax; read . 6.5% state rate and destination sourcing.
- Washington Department of Revenue: Income tax; read . No current individual income tax; 9.9% tax from January 1, 2028 over $1 million.
- IRS: Understanding your Form 1099-K, reviewed . The federal 1099-K test.
- IRS: Instructions for Form 1099-K, reviewed . Both parts of the federal test counted for the calendar year.
Free 1-page Reseller Cheat Sheet: fees on 8 platforms, Media Mail and stamp prices
What each platform takes from a $10, $25 and $50 sale, Media Mail 1-10 lb, Ground Advantage to Zones 1, 5 and 8, and the Forever stamp, on one printable page. The link appears as soon as you sign up.