Credit card processing and merchant services in Washington
Washington taxes sales where the customer receives them, added sales tax to several services in 2025, and now lets you round cash totals. Here's how that shapes your checkout.
Card surcharges
Surcharging allowedNo Washington statute limits them, so the card network caps, posted notice and the no-debit rule are what apply.
Sales tax
6.5% state rate, plus local
Last checked
October 6, 2026
Washington's state sales tax is 6.5%, and cities and counties add their own rates on top. What trips businesses up is where a sale counts. If the customer takes the item at your store, you charge your store's rate. If you deliver it, or the customer receives a service somewhere else in the state, you charge the rate where they receive it. A florist or online shop delivering around the state, or a plumber working in customers' homes, needs a rate for each address, not one number in the POS.
Since October 1, 2025, more services have been taxable too. Under ESSB 5814, advertising services, live presentations such as workshops and webinars with real-time interaction, temporary staffing and several technology services count as retail sales, so the business selling them collects sales tax. New exclusions and exemptions took effect on July 1, 2026, and the Department of Revenue runs a temporary penalty relief program for businesses catching up.
Cash got a smaller change. RCW 1.100.010, enacted in 2026, lets a business round the total of an in-person cash sale to the nearest five cents. It doesn't apply to card payments, and it doesn't change the sales price or the tax owed.
On card fees, we found no Washington statute that bans or caps surcharges, so Visa's 3% and Mastercard's 4% limits, the disclosure rules and the debit ban are what apply. RCW 19.52.130 also says a card-issuing bank's agreement can't stop a retailer from offering general discounts for cash.
Start with what you pay now. A free statement review shows your effective rate, the Seattle page covers the city's 2026 rate change, and the Tacoma page covers that city's business and occupation tax.
What Washington merchants should know
Credit card surcharges and cash discounts
We found no Washington statute that bans or caps credit card surcharges. The card network rules apply: no more than your cost of acceptance, with ceilings of 3% for Visa and 4% for Mastercard, posted notice at the point of entry and the point of sale, the amount on the receipt, and no surcharge on debit or prepaid cards.
Cash discounts are a separate option. RCW 19.52.130 says no agreement between a credit card issuing bank and a retailer may prohibit the retailer from granting general discounts for paying cash, up to the percentage allowed by Regulation Z.
Sources: Visa, U.S. Merchant Surcharge Q and A (PDF); Mastercard, Credit card surcharge rules and fees for merchants; Revised Code of Washington, RCW 19.52.130
Sales tax and where the sale happens
The state sales tax rate is 6.5%, and the local rate varies by city and county. If the customer receives the goods or service at your business location, charge the rate there. If you deliver, ship or perform the service at another location in Washington, charge the rate where the customer receives it.
Sources: Washington Department of Revenue, Retail sales tax; Washington Department of Revenue, Determine the location of my sale
Services newly subject to sales tax
Since October 1, 2025, ESSB 5814 has made several services retail sales, including advertising services, live presentations such as workshops and webinars with real-time interaction, and temporary staffing. Businesses selling them collect retail sales tax.
New exclusions and exemptions took effect on July 1, 2026, including changes for live presentations and for temporary staff provided to hospitals. The Department of Revenue's page lists what's included and explains its temporary penalty relief program.
Source: Washington Department of Revenue, Services newly subject to retail sales tax
Rounding cash totals
RCW 1.100.010 allows the total of an in-person cash transaction to be rounded to the nearest five cents: totals ending in 1, 2, 6 or 7 cents round down, and totals ending in 3, 4, 8 or 9 cents round up. It applies only to cash, not to card or other electronic payments, and rounding doesn't change the sales price or the tax due. A customer with exact change can still pay the unrounded total.
Sources: Revised Code of Washington, RCW 1.100.010; Washington State Legislature, Substitute House Bill 2334, session law (PDF)
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Common questions
Which sales tax rate do I charge on a delivery in Washington?
The rate where the customer receives the item. Washington sources sales to the delivery location, so a business in one city delivering to another charges the destination's combined rate. For walk-in sales at your store, use your store's rate. The Department of Revenue's tax rate lookup tool gives the rate for any Washington address.
Do I charge sales tax on services in Washington now?
Possibly. Since October 1, 2025, ESSB 5814 has treated services such as advertising, live presentations with real-time interaction, and temporary staffing as retail sales. New exclusions started on July 1, 2026. If you sell services, check the Department of Revenue's list and make sure the invoices you send, including payment links from a virtual terminal, include the tax where it applies.
Can I round cash totals in Washington?
Yes, for in-person cash payments, under RCW 1.100.010. Totals ending in 1, 2, 6 or 7 cents round down to the nearest five cents, and 3, 4, 8 or 9 cents round up, so $7.83 becomes $7.85 and $7.82 becomes $7.80. Card payments are charged the exact amount, and rounding doesn't change the tax you owe.
Can Washington businesses surcharge credit cards?
Yes. We found no Washington statute that bans or caps surcharges, so the card networks set the limits: your cost or 3% for Visa and your cost or 4% for Mastercard, whichever is lower, with posted notice and the amount on the receipt. You can't surcharge debit or prepaid cards.
Can a Washington retailer offer a cash discount instead of a surcharge?
Yes. RCW 19.52.130 says no agreement between a card-issuing bank and a retailer can stop the retailer from offering general discounts for cash, up to the percentage allowed by Regulation Z. Our guide to dual pricing and surcharging compares the two approaches.
Other states we serve besides Washington
- Alabama
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- Ohio
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- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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