Washington: Sales Tax Handbook
Are Software and Digital Products 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 software and digital products in Washington, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Washington.
Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Washington.
Canned Software - Downloaded
TAXABLE
Sales of canned software - downloaded are subject to sales tax in Washington.
Custom Software - Delivered on Tangible Media
EXEMPT
Sales of custom software - delivered on tangible media are exempt from the sales tax in Washington.
Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Washington.
Customization of Canned Software
EXEMPT
Sales of customization of canned software are exempt from the sales tax in Washington.
Digital Products
TAXABLE
In the state of Washington, any digital goods that are streamed or remotely accessed are considered to be taxable. These digital goods which are taxable includes photographs which are transferred electronically to the end user.
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