Pasco, WA Sales Tax: Rate Breakdown, Exemptions, and Use Tax

The sales tax rate in Pasco, WA is 8.9% as of 2026, combining Washington’s 6.5% state rate with 2.4% in local taxes.1Washington State Legislature. RCW 82.08.020 – Tax Imposed – Retail Sales – Retail Car Rental2Pasco, WA – Official Website. Additional Tax Revenues That rate applies to most retail purchases made within city limits or delivered to a Pasco address. Washington has no personal income tax, so sales and use taxes do more of the state’s revenue work than they would elsewhere.

How the 8.9% Breaks Down

The state takes 6.5% on every retail sale.1Washington State Legislature. RCW 82.08.020 – Tax Imposed – Retail Sales – Retail Car Rental The 2.4% local portion funds a mix of regional services:2Pasco, WA – Official Website. Additional Tax Revenues

  • 0.6% to Ben Franklin Transit for Tri-Cities public transportation.
  • 0.2% to the Pasco Public Facilities District for regional venues and infrastructure.
  • 0.1% to Franklin County behavioral health programs.
  • The remainder split between Pasco and Franklin County for public safety bonds funding police, fire, and related services.

Rates change periodically. Before a large purchase, confirm the current figure on the Washington Department of Revenue’s rate lookup.

Why Online Orders Get Charged the Pasco Rate

Washington uses destination-based sourcing: the tax rate is set by where the buyer receives the goods, not where the seller sits.3Washington State Department of Revenue. Destination-Based Sales Tax Order a couch from a Seattle retailer and have it delivered to your Pasco home, and you pay 8.9%. The same logic covers out-of-state online sellers. This has been the rule since 2008, which is why identical items shipped to different addresses can carry slightly different tax amounts.

What You Pay Sales Tax On

Most tangible personal property sold at retail is taxable: clothing, electronics, furniture, building materials, vehicles. Washington also taxes a wider range of services than many states.4Washington Department of Revenue. Services Subject to Sales Tax Long-standing taxable categories include:

  • Construction, remodeling, and improvements to residential or commercial property.
  • Repair and installation work, including automotive repair and appliance installation.
  • Landscaping, lawn care, and tree trimming.
  • Personal training at gyms and fitness facilities.
  • Digital goods delivered to a Pasco address: downloaded music, e-books, streaming subscriptions.

Services Added in October 2025

Effective October 1, 2025, ESSB 5814 added several categories of services to the retail sales tax base. The 8.9% rate now applies in Pasco to:5Washington Department of Revenue. Services Newly Subject to Retail Sales Tax

  • Advertising services, including ad design, campaign planning, lead generation, and buying digital ad space.
  • IT services such as help desk support, network management, consulting, data processing, and data entry.
  • Custom website development, design, and ongoing support.
  • Live presentations, workshops, webinars, and courses with real-time interaction, in person or online.
  • Security guard services, background checks, armored car services, and security system installation.
  • Temporary staffing arrangements supplying workers on short-term or contract assignments.
  • Access to custom software and the customization of off-the-shelf software.

Many Pasco businesses that previously handled only Business and Occupation tax on their service revenue now have to collect and remit retail sales tax too.

What’s Exempt

Several common purchases do not trigger the 8.9% tax.

Groceries. Most basic food and food ingredients are exempt, including produce, meat, dairy, bread, and canned goods.6Washington Revised Code. Washington Code RCW 82.08.0293 – Exemptions – Sales of Food and Food Ingredients The exemption does not reach prepared foods, soft drinks, dietary supplements, or bottled water. A rotisserie chicken from the deli counter is taxable; a raw chicken from the meat case is not.

Prescription drugs. Medications dispensed under a prescription for human use are exempt, as are prescribed family planning drugs and devices.7Washington State Legislature. RCW 82.08.0281 – Exemptions – Sales of Prescription Drugs Over-the-counter medications are taxable.

Professional services. Legal advice, accounting, and medical examinations stayed outside the retail sales tax even after the 2025 expansion.8Washington Department of Revenue. Frequently Asked Questions About ESSB 5814 You won’t see sales tax on your lawyer’s invoice.

Qualifying manufacturing equipment. Businesses classified under a manufacturing B&O category can buy qualifying machinery and equipment without sales tax if the equipment has a useful life of at least one year and is used more than half the time in a manufacturing operation.9Washington Department of Revenue. Manufacturer’s Sales/Use Tax Exemption for Machinery and Equipment Repair parts and lubricants for that equipment also qualify.

Use Tax When Sales Tax Wasn’t Collected

If you buy something without paying Washington sales tax and then use it in Pasco, you owe use tax at the same 8.9% rate. This commonly comes up with purchases from out-of-state sellers who don’t collect Washington tax, private party sales, and items brought in from elsewhere.10Washington Department of Revenue. Use Tax Use tax is calculated on the full purchase price, including shipping and delivery charges.

Both individuals and businesses are responsible for reporting and paying it. Businesses include use tax on their regular excise tax return. Individuals report it on an annual use tax return through the Department of Revenue. It’s one of the most commonly overlooked tax obligations in the state, and an audit can surface it years later with interest attached.

For Businesses: Registering, Filing, and Penalties

Any business selling taxable goods or services in Pasco must register with the Department of Revenue and obtain a business license before collecting sales tax.11Washington Department of Revenue. Apply for a Business License That covers storefronts, service providers, and home-based businesses.

Out-of-state sellers hit Washington’s economic nexus threshold once gross income from Washington customers exceeds $100,000 in the current or prior calendar year, counting both taxable and exempt sales.12Washington Department of Revenue. Out of State Businesses Reporting Thresholds and Nexus Most large online retailers already clear that bar and collect the correct 8.9% at checkout for Pasco buyers.

Businesses file through the Department of Revenue’s My DOR online portal.13Washington Department of Revenue. My Account Filing frequency depends on annual tax liability:14Washington Department of Revenue. Filing Frequencies and Due Dates

  • Monthly for liability above $4,800.
  • Quarterly for liability between $1,051 and $4,800.
  • Annually for liability of $1,050 or less.

Even in periods with no taxable sales, a zero return is still required to avoid being flagged as delinquent.

Late payment penalties escalate quickly:15Washington Department of Revenue. Penalty Waivers

  • 9% if the tax isn’t paid by the original due date.
  • 19% if still unpaid after the last day of the following month.
  • 29% if still unpaid after the last day of the second month following the due date.

The minimum penalty is $5. On top of that, the Department charges interest at a variable annual rate tied to the federal short-term rate plus two percentage points, adjusted each January, running from the original due date until paid. First-time filers with a clean history can request a penalty waiver, but interest is mandatory by law and cannot be waived.