What Washington’s New Sales Tax Law Means for Your Business (and How to Stay Ahead)

I wanted share something important that just went into effect here in Washington. If you’re a small business owner (or even if you’re simply purchasing services for your company), this one’s worth paying attention to.

As of October 1, 2025, Washington’s Legislature passed a new law—ESSB 5814—that expands the state’s sales tax to include a list of services that were previously tax-free.

Now before your eyes glaze over (because I know tax talk can feel overwhelming), let’s break it down in simple terms.

What’s Changing?

The new law requires businesses to start collecting sales tax on services like:
✨ Advertising
✨ Live presentations or trainings
✨ IT support
✨ Custom website development
✨ Temporary staffing services
✨ Software customization

So, if you sell these services, you’ll need to start charging sales tax. If you buy them, expect to see sales tax added to your invoices.

Why It Matters

I know tax changes can feel like “just one more thing” on your already full plate as a business owner. But here’s the truth: staying ahead of changes like this helps you avoid surprises later. The last thing any of us want is an unexpected tax bill or a letter from the Department of Revenue.

Think of this as simply updating your systems (and mindset) so you can continue focusing on the part of your business you actually love.

Where to Learn More

The Washington Department of Revenue has the full details and list of services affected. You can read all about it here: Washington Department of Revenue — Services Newly Subject to Retail Sales Tax

https://dor.wa.gov/taxes-rates/retail-sales-tax/services-newly-subject-retail-sales-tax

Here’s the thing. I get that tax talk isn’t always fun or glamorous. But part of running a business with confidence is understanding how laws like this impact your business and bottom line. You don’t have to figure it out alone.

If you’re wondering whether this applies to you, or you just want someone to walk you through what steps to take next, I’d be more than happy to help.

Just reach out—I’m here for you.