The 98203 sales tax rate is 9.9% as of 2026, covering most of Everett, Washington, in Snohomish County. That total is Washington’s 6.5% state rate plus 3.4% in local taxes collected at the register. Rates in Washington can change when you cross a city or county line, so a short drive to a neighboring jurisdiction may put a different number on your receipt. The Washington Department of Revenue keeps a free lookup tool for verifying the current rate at any address in the state.1Washington Department of Revenue. Sales and Use Tax Rates
What the 9.9% Includes
The 6.5% state portion goes to Washington’s general fund. The 3.4% local portion funds several things at once. A significant piece supports Sound Transit’s Regional Transit Authority tax, which pays for light rail, Sounder commuter rail, and express bus service connecting Everett with Seattle, Bellevue, and Tacoma.2Washington Department of Revenue. Regional Transit Authority (RTA) Tax The remainder covers city and county needs like roads, public safety, and infrastructure. Snohomish County does not add a separate county-level sales tax on top of the Everett city rate.
Local rates in Washington update quarterly, with new rates taking effect on January 1, April 1, July 1, and October 1.3Washington Department of Revenue. Local Sales and Use Tax If you run a business inside the 98203 ZIP, checking the Department of Revenue’s quarterly change notices before each effective date takes a couple of minutes and avoids collecting at an outdated rate.
What You Won’t Pay 9.9% On
Two categories that hit household budgets hardest are exempt from Washington sales tax.
Food and food ingredients sold for human consumption are exempt. That covers meat, produce, dairy, bread, eggs, cereals, coffee, and tea. The exemption does not extend to prepared food, soft drinks, bottled water, or dietary supplements, all of which stay taxable.4Washington State Legislature. RCW 82.08.0293 Alcohol, tobacco, and cannabis are also excluded from the exemption. Practically, the rotisserie chicken from the deli counter counts as prepared food and gets taxed; the raw chicken next to it does not.
Prescription medications dispensed to a patient under a valid prescription are also exempt.5Washington State Legislature. RCW 82.08.0281 That includes family planning drugs and devices dispensed by prescription or supplied through a family planning clinic under contract with the state Department of Health. Over-the-counter drugs carrying a federal “Drug Facts” label also qualify under the same statute.
When 98203’s Rate Actually Applies to Your Purchase
Washington uses destination-based sourcing. The tax rate is set by where the buyer receives the goods, not where the seller is located.6Washington State Legislature. RCW 82.32.730 – Sourcing of Retail Sales Order furniture from a store in Tacoma and have it delivered to your home in 98203, and the seller collects 9.9%, even though the showroom sits in a different jurisdiction.
Over-the-counter sales work differently. When you walk into a store, pick something up, and leave with it, the sale is sourced to the seller’s business location because that is where you took possession.6Washington State Legislature. RCW 82.32.730 – Sourcing of Retail Sales Drive to a shop in unincorporated Snohomish County with a lower combined rate and buy something in person, and you pay that location’s rate instead of Everett’s.
Use Tax Catches the Purchases Sales Tax Missed
Use tax applies at the same combined rate as the sales tax for your location, so in 98203 that is 9.9%.7Washington Department of Revenue. Use Tax Washington imposes use tax on any tangible personal property, digital goods, or taxable services used in the state when the seller did not collect sales tax at the time of purchase.8Washington State Legislature. RCW 82.12.020 – Use Tax Imposed
Common situations where use tax comes up:
- Buying equipment from a seller in a state with no sales tax or a lower rate, then using it in Everett.
- Online or catalog orders where the seller doesn’t collect Washington tax, which still happens with smaller vendors.
- A business pulling items from resale inventory for its own use instead of selling them.
- Using a reseller permit to avoid sales tax on items you actually use rather than resell. That triggers the tax plus a 50% penalty, even without any intent to defraud.7Washington Department of Revenue. Use Tax
Businesses report use tax on their regular excise tax return in the period when the goods are first used in Washington. Individual consumers can report it on their excise tax filing as well.
If You’re Collecting the Tax
Out-of-state sellers must register to collect Washington sales tax once they hit $100,000 in combined gross receipts sourced to Washington in the current or prior year.9Washington Department of Revenue. Out of State Businesses Reporting Thresholds and Nexus Physical presence in the state, such as a warehouse, office, or employees working here, triggers registration regardless of revenue. Businesses organized or commercially domiciled in Washington must register too.
Late payment penalties escalate quickly. If tax due on a return isn’t paid by the due date, the Department of Revenue assesses a 9% penalty. Miss the end of the following month and it jumps to 19%. Let it slide to the end of the second month past due and the penalty reaches 29% of the tax owed, with a $5 minimum.10Washington State Legislature. RCW 82.32.090 Operating without a registration certificate adds a 5% penalty on the tax owed for the entire unregistered period. The Department offers penalty waivers in limited circumstances, and filing electronically through My DOR is the simplest way to avoid the unintentional mistakes that trigger these penalties in the first place.11Washington Department of Revenue. Penalty Waivers