News & Updates
Washington Authorizes Prepayment of Capital Gains Tax
Washington has passed HB 1376, a technical but significant update to the state's capital gains tax procedures. This bill provides a new timing mechanism for taxpayers to better align their state tax payments with federal tax planning. Key Provisions of HB 1376 Early...
Washington Estate Tax Update: New Rates and Limits for 2026
Washington's estate tax landscape is shifting. Under ESB 6347, several key changes have been enacted that will impact estate planning for deaths occurring in 2026 and beyond. This legislation effectively rolls back previous high-rate increases, restoring a more...
Washington’s ESSB 5814 Penalty Relief Program
A limited-time chance to reduce penalty exposure for newly taxable services Updated: March 03, 2026 Starting Oct. 1, 2025, Washington expanded retail sales tax (and retailing B&O) to several service categories under ESSB 5814. For a plain-English overview of what...
New: International Remote Seller Voluntary Disclosure Program (Feb. 1 – May 31, 2026)
The Washington Department of Revenue has announced a pilot International Remote Seller Voluntary Disclosure Program, running February 1 through May 31, 2026. This program was created in response to feedback from taxpayers and representatives and provides an...
New 2026 B&O Tax Classification for Payment Card Processors
Effective January 1, 2026 Washington State will implement a new Business & Occupation (B&O) tax classification specifically for payment card processing activities. This change, enacted under SHB 2020 (Chapter 401, Laws of 2025), affects businesses that...
Effective October 1 – New Legislation Brings Sales Tax to Washington Service Industries
Our June post, "New Washington Sales Tax Rules Effective October 1, 2025,” introduced Engrossed Substitute Senate Bill (ESSB) 5814. This post builds on that discussion with key updates. Introduction Washington’s ESSB 5814, effective October 1, 2025, significantly...
Voluntary Disclosure, Tailored Relief: What Washington Taxpayers Need to Know
Washington State will temporarily offer two Voluntary Disclosure Programs (VDPs): the General VDP and the Investment Income VDP. While both of these programs are aimed at encouraging taxpayers to come forward and resolve past tax liabilities, there are some key...
New Washington Sales Tax Rules Effective October 1, 2025
Beginning October 1, 2025, Washington State will expand its retail sales tax to cover several new categories of services, including information technology services, custom website development, investigation and security services (including armored car), temporary...
New Investment Income Voluntary Disclosure Program – Starts July 1, 2025
Beginning July 1, 2025, the Washington Department of Revenue is launching a temporary expanded Investment Income Voluntary Disclosure Program under ESSB 5167. This initiative allows qualifying businesses with unreported investment income subject to B&O tax to come...
Seattle Social Housing Tax (SHT)
What's Happening? Approved and certified in February 2025, Proposition 1A---the Social Housing Tax (SHT)---took effect on January 1, 2025. The SHT imposes a 5% excess compensation payroll expense tax on businesses with individual Seattle employees earning more than $1...