Retail sales and use tax

Child care is not considered a retail sale, so you don't need to collect sales tax from your customers on the income you receive for the care of children.

All child care organizations are responsible for paying retail sales tax on goods used in the business. The tax is paid directly to the retailer from whom the items are purchased. This includes furniture, diapers, toys, and other items used to care for children. It does not include the purchase of unprepared food. Food that is not prepared is not subject to Washington's retail sales tax. However, the retail sales tax does apply to prepared food.

Use tax is due when goods are acquired without paying Washington's retail sales tax. For example, use tax is due if you buy playground equipment in Oregon for your business in Washington. You may report and pay use tax on the excise tax return or the Consumer Use Tax Return (pdf). The use tax rate is the same as the retail sales tax, and depends on your location.

To find a sales or use tax rate, please visit our Sales and Use Tax Rate page.