Washington Sales Tax on Leases and Rentals Washington: Sales Tax Handbook


Are Leases and Rentals subject to sales tax?

While Washington's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Washington, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Washington.

Motor Vehicles
In the state of Washington, an additional motor vehicle sales taxis imposed on all rentals in the state at rate of 0.3% of the complete net price paid, which is then utilized to finance transportation improvements. In addition to retail sales tax, rental car tax paid by consumer on rental of passenger car for period of less than thirty days at rate of 5.9%.

Tangible Media Property
Sales of tangible media property are subject to sales tax in Washington.

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Source: http://www.salestaxhandbook.com/washington/sales-tax-taxability/leases-and-rentals