Credit card processing and merchant services in Renton, WA
Renton's city B&O tax starts only above $500,000 a year in Renton taxable revenue, and your sales tax is 10.5% or 9.1% depending on which location code covers the address.
Renton's own business and occupation tax doesn't reach a company until its annual Renton taxable revenue passes $500,000, according to the City's B&O tax page. Cross that line and you file B&O returns with Renton, separately from anything you file with the state. The City generally puts businesses earning under $1 million a year on annual filing and asks those above $1 million to report and pay every quarter.
Out-of-town contractors and service firms got a small break this year. Since January 1, 2026, a business located outside Renton that earns $4,000 or less a year in the city (the cutoff used to be $2,000) still needs a Renton license, but the City charges no fee for it. Businesses with an address in Renton don't get that exemption.
Sales tax depends on which side of a line your address falls. The Department of Revenue's table for October 1 to December 31, 2026 lists Renton, location code 1725, at 10.5%, and a separate Renton non-RTA area, code 4025, at 9.1%. A $300 sale carries $31.50 of tax under the first code and $27.30 under the second, so look the address up before you set up a register. Part of the 10.5% is new: Renton added a tenth of a percent for local law enforcement programs on January 1, 2026.
The Census Bureau put Renton at 104,975 residents in July 2025, 1.8% below its April 2020 estimates base.
Destination sourcing for deliveries, the services taxed since ESSB 5814 and the card networks' surcharge limits work here as they do statewide, and our Washington page covers them with sources. If you bill clients after the work, our virtual terminal sends invoices and payment links. Pricing is interchange-plus, and a free statement review shows your effective rate today.
Rules that matter in Renton
Renton's $500,000 B&O threshold and filing schedule
The City of Renton says a business is subject to its business and occupation tax when its annual Renton taxable revenue is above $500,000. Businesses earning less than $1 million a year are generally placed on annual filing, and those earning more than $1 million generally report and pay quarterly.
Renton's B&O tax is separate from Washington State's B&O tax, and Renton returns are filed separately from state returns. Confirm your classification and filing status with the City's Tax and Licensing team.
Renton licenses for businesses based outside the city
From January 1, 2026, the City raised its threshold for out-of-city businesses from $2,000 to $4,000 in annual Renton gross revenue. An out-of-city business under the threshold must still obtain a City of Renton business license, but no license fee is charged. The threshold doesn't apply to businesses located in Renton.
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Common questions
Does a small Renton business owe the city B&O tax?
Not until its annual Renton taxable revenue goes above $500,000, the City says. Below that, you still keep a City business license, but there's no Renton B&O tax to pay. Above it, the tax is filed with the City on its own return, apart from your state excise tax return.
How often do I file Renton B&O returns?
It depends on your revenue. The City generally puts businesses earning less than $1 million a year on annual filing and requires businesses earning more than $1 million to report and pay quarterly. Your filing status can change as you grow, so check it with the City each year.
My business is in Bellevue. Do I need a Renton license for a few jobs in Renton?
Yes, but it may cost nothing. Since January 1, 2026, a business located outside Renton with $4,000 or less a year in Renton gross revenue still needs a City of Renton license, and the City charges no fee for it. Above $4,000, the City charges a license fee, so check the amount with its Tax and Licensing team. Our Bellevue page covers that city's own B&O tax.
Which sales tax rate applies in the Renton non-RTA area?
9.1% for October 1 to December 31, 2026: a 2.6% local rate plus the 6.5% state rate, under location code 4025. The rest of Renton, code 1725, is at 10.5%. The Department of Revenue's address lookup tells you which code covers a given location.
Why did Renton's sales tax rise on January 1, 2026?
Renton added one-tenth of a percent to its local sales and use tax for local law enforcement programs, according to the Department of Revenue's notice. The Department's table for the fourth quarter of 2026 lists 10.5% under location code 1725, so a terminal still running last year's settings is short on every sale.
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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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