Credit card processing and merchant services in Seattle, WA
Seattle's combined sales tax rate rose to 10.55% on January 1, 2026, and more services became taxable in 2025. Make sure your terminals and invoices keep up.
Seattle's combined sales tax rate is 10.55%: 4.05% local plus Washington's 6.5% state rate. It went up two-tenths of a point on January 1, 2026, when new local law enforcement program taxes took effect, and the Department of Revenue's rate table for October through December 2026 still lists 10.55%. If any device or template still charges 10.35%, it has been short since New Year's Day.
Seattle sales also follow Washington's destination rule. When a customer picks up in your Seattle shop, the city's rate applies. When you deliver to a customer in another city, use the rate where they receive it, which may be lower or higher than Seattle's.
The bigger change for many Seattle businesses was ESSB 5814. Since October 1, 2025, advertising services, live presentations such as paid workshops and webinars with real-time interaction, temporary staffing and some IT services have been taxable retail sales. A $400 seat at an in-person workshop in Seattle now carries $42.20 in sales tax. Ad agencies, trainers and staffing firms that never collected sales tax may now need to add it to every invoice.
By the Census Bureau's count, Seattle had 784,777 residents in July 2025, and its hotels, restaurants and bars did about $5.3 billion in sales in 2022. For restaurants and bars, card fees hit every tab.
We found no Washington limit on surcharges beyond the card networks' rules. If you're comparing options, start with a free statement review; for invoices and payment links, see our virtual terminal.
Rules that matter in Seattle
January 2026 rate increase
Local sales and use tax in Seattle went up on January 1, 2026, when new Local Law Enforcement Programs taxes took effect, for a total rate increase of 0.2 percentage points. The combined rate is now 10.55%, made up of 4.05% local and 6.5% state tax, and the Department of Revenue's fourth-quarter 2026 rates still list it.
Sources: Washington Department of Revenue, City of Seattle Local Law Enforcement Programs rate change, January 1, 2026 (PDF); Washington Department of Revenue, Local sales and use tax rates, Quarter 4 2026 (PDF); Washington Department of Revenue, Local sales and use tax rate table (October 1 to December 31, 2026)
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Common questions
What is the sales tax rate in Seattle?
10.55%, made up of a 4.05% local rate and Washington's 6.5% state rate. The Department of Revenue lists that rate for October 1 through December 31, 2026. It rose 0.2 points on January 1, 2026, so anything still set to 10.35% needs updating.
Do I charge Seattle's rate on deliveries outside the city?
No. Washington uses destination-based sourcing, so a delivery to a customer in another city is taxed at that location's rate. Seattle's 10.55% applies when the customer receives the goods or service in Seattle, including in-store pickups. The Department of Revenue's lookup tool gives the rate for any Washington address.
I run workshops in Seattle. Do I charge sales tax now?
Probably, if they're live presentations with real-time interaction. Since October 1, 2025, ESSB 5814 has treated those as retail sales, along with advertising services and temporary staffing. Some exclusions were added on July 1, 2026, including for certain live presentations, so check the Department of Revenue's guidance for your situation.
Can a Seattle business stop taking cash?
We found no Washington state law that requires businesses to accept cash, but check Seattle's own municipal code before you stop taking it. If you keep cash, RCW 1.100.010 now lets you round in-person cash totals to the nearest five cents, without changing the tax you owe.
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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