Puyallup Tax Rates: Sales, Property, Utility, and B&O Taxes

Puyallup tax rates center on a 10.0% combined sales tax, property tax collected by Pierce County, utility taxes of 6% to 8% on monthly service bills, and a local Business and Occupation tax on gross receipts for anyone running a business in town. Washington has no state income tax, so there’s no paycheck withholding to the state. The tradeoff is that nearly everything else you buy, own, or sell carries a tax of some kind.

No State Income Tax on Wages

Washington does not impose a personal or corporate income tax.¹ Puyallup residents don’t file a state return on wages, salary, or retirement income. If you’re relocating from an income-tax state, the savings on earned income can be significant.

One exception sits outside that rule. Washington charges a 7% capital gains tax on the sale of long-term assets such as stocks, bonds, and business interests above a deduction threshold that adjusts annually for inflation. The 2025 standard deduction was $278,000.² The tax applies only to individuals and is separate from federal capital gains. Real estate sales are excluded from the state capital gains tax, though they trigger a separate excise tax covered below.

Sales and Use Tax

The combined sales tax rate on purchases made within Puyallup is 10.0%. Of that total, 6.5% goes to Washington state and 3.5% is split among Pierce County, the city, and local transit and public safety districts. Puyallup Municipal Code Chapter 3.08 authorizes the city’s portion of this tax on retail sales within city limits.³ The rate applies to most tangible goods and many services.

A matching use tax covers items bought outside the city or online for use within Puyallup when no sales tax was collected at the point of purchase. The use tax rate matches the sales tax rate, and state law requires residents to report and remit it.³ In practice, this most often comes up on large purchases like furniture, vehicles, or equipment bought in a lower-tax jurisdiction. The Department of Revenue publishes a searchable rate table that reflects quarterly adjustments to the local components, so check the current rate before assuming it hasn’t moved.

Property Tax

The Pierce County Assessor-Treasurer assesses and collects property tax for all parcels in Puyallup, even though the city sets its own levy rate as one piece of the total bill. The county values each parcel annually based on market conditions and property characteristics. Statements go out in February. If your total tax exceeds $50, you can pay in two installments: the first half by April 30 and the second half by October 31.⁴ If the total is $50 or less, full payment is due by April 30.

Your bill funds more than just city services. The total levy covers local schools, fire districts, the Port of Tacoma, library systems, and other regional taxing districts. The city’s share is typically a fraction of the overall bill. Washington offers property tax exemptions for qualifying seniors, people retired due to disability, and veterans with disabilities, with eligibility tied to income thresholds set by the Department of Revenue.

Late Payment Penalties

Missing a deadline gets expensive quickly. Starting May 1, interest accrues at 1% per month on the full-year tax owed. On June 1, a 3% penalty is added, and on December 1, another 8% penalty is applied. Penalties cap at a combined 11%, but interest keeps running as long as any balance remains unpaid.⁴ You can pay online through the Pierce County portal, by mail, or in person at the Assessor-Treasurer’s office in Tacoma or the Pierce County Finance Office.

Utility Taxes on Your Monthly Bills

Puyallup taxes utility companies providing service within city limits, and those companies pass the cost through to customers as a line item on monthly bills. Rates vary by utility under Chapter 5.08 of the municipal code:⁵

Electricity: 6% of gross subscriber revenues
Natural gas: 6% of gross subscriber revenues
Cable television: 6% of gross subscriber revenues
Garbage and solid waste collection: 6% of gross revenues
Water, sewer, and stormwater: 8% of gross income

The 6% ceiling for electricity, natural gas, and telephone service is set by state law under RCW 35.21.870. A city can exceed that rate only with voter approval.⁶ Water, sewer, and stormwater don’t fall under the same cap, which is why Puyallup taxes those at 8%.

Real Estate Excise Tax When You Sell

When you sell real property in Puyallup, Washington’s Real Estate Excise Tax applies on a graduated rate structure based on the selling price:⁷

$525,000 or less: 1.10%
$525,000.01 to $1,525,000: 1.28%
$1,525,000.01 to $3,025,000: 2.75%
$3,025,000.01 and above: 3.00%

These rates are marginal, so each tier applies only to the portion of the sale price within that range, the way income tax brackets work. The state adjusts the price thresholds every four years. Local jurisdictions including Puyallup typically add their own REET component on top of the state rate, so the total excise tax on a sale will be higher than the state rates alone. The seller customarily pays at closing, and the title company handles the remittance. For a home selling in Puyallup’s median price range, the REET bill is often one of the larger closing costs.

Business and Occupation Tax

Any business operating within Puyallup owes a local Business and Occupation tax on gross receipts under Puyallup Municipal Code Chapter 5.08, which is separate from the business license requirement in Chapter 5.04.⁵ You need both a valid business license and current B&O filings to stay in compliance. Filing involves categorizing income by activity type, such as retailing, wholesaling, or services, then entering the figures on the official return. Accurately distinguishing between revenue earned inside and outside city limits matters, because it directly affects how much you owe.

Late Filing Penalties

The penalty structure escalates fast. If you fail to pay within 30 days of the due date, a 10% penalty is added to the tax owed. After 60 days, an additional 5% penalty applies. After 90 days, interest begins accruing at 12% per year on the combined tax and penalty balance.⁵ If the city determines any part of a deficiency was intentional evasion, a further 50% penalty can be assessed on top of everything else.

Gambling and Admissions Taxes

Puyallup imposes a local gambling tax on organizations operating certain gaming activities within city limits. Rates depend on the activity:⁸

Bingo and raffles (charitable/nonprofit): 5% of gross revenue minus prizes
Punchboards and pull tabs (charitable/nonprofit): 10% of gross revenue minus prizes
Punchboards and pull tabs (all other operators): 10% of net revenue as reported to the state Gambling Commission
Card games: 20% of gross receipts from table fees

Charitable or nonprofit organizations that hold bingo or raffles no more than once per calendar year and earn less than $10,000 in gross annual revenue from those activities are exempt.⁸

The city also collects a 5% admissions tax on paid entry to events held within Puyallup, authorized under Municipal Code Chapter 5.40. Venue operators collect it from attendees and remit it to the city, and it typically appears as a separate line item on ticket prices for concerts, fairs, and similar events.

1
Washington Department of Revenue. Income Tax
2
Washington Department of Revenue. Capital Gains Tax
3
City of Puyallup, WA. Puyallup Municipal Code Chapter 3.08 – Sales and Use Tax
4
Pierce County, WA – Official Website. Tax Bills and Payments
5
City of Puyallup, WA. Puyallup Municipal Code Chapter 5.08 – Business and Occupation Taxes
6
Washington State Legislature. RCW 35.21.870
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Washington Department of Revenue. Real Estate Excise Tax
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City of Puyallup, WA. Puyallup Municipal Code – Bingo, Raffles and Amusement Games