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B&O Tax Rates

Tax Threshold Annual Gross Income

Effective January 1, 2011, businesses with an annual gross income under $250,000 shall be exempt from the tax imposed under the Tacoma Municipal Code Subtitle 6A.30, provided, however, businesses operating in the City of Tacoma are still required to obtain a registration certificate.

 

Gross income is the total business income from within and outside the corporate city limits of Tacoma.

Small Business Annual Phased Tax Credit

Businesses with an annual gross income from $250,001 to $300,000 will have credit available and pay only a percentage of their tax due. A credit is made available to all businesses located in the City whose annual gross income is $250,001 through $300,000.  The table below represents the Tax Credit.


Small Business Annual Phased Tax Credit

Annual Gross Income

Tax Credit - Percentage of Total Tax Due

$250,001 - $260,000

90%
$260,001 - $270,000 80%
$270,001 - $280,000 70%
$280,001 - $290,000 45%
$290,001 - $300,000 25%

Download the Multiple Activities Tax Credit Form (MATC).

Business and Occupation Tax Rates

Category 2002 Rate Current Rate
Retail 0.00153 0.00153
Wholesale 0.00102 0.00102
Manufacturing 0.0011 0.0011
Service and other 0.0042 0.0040
Service and other apportioned - effective January 1, 2008   0.0040
Retail service   0.0040
International investment 0.00165 0.00055

Interest Rates for Business and Occupation Taxes

Only for those filed after the due date listed below.  For years prior to 2003, please call (253) 591-5252.

Year Assessments Refunds
2016 2% 2%
2015  2% 2%
2014 2% 2%
2013 2% 2%
2012 2% 2%
2011 3% 3%
2010 3% 3%
2009 5% 5%
2008 7% 7%
2007 7% 7%
2006 5% 5%
2005 4% 4%

If the tax paid is less than the amount due, interest is added from the date of underpayment or due date until paid.

 

You have 30 days from the notice of such underpayment to pay the balance due plus interest.

 

Late Payment Penalties Increase

Effective August 1, 2015 the Engrossed Substitute Senate Bill 6138 increases the rates as which late penalties are assessed if payment of the tax due on a return is not received by the due date. For current rates view the Washington State Department of Revenue's Special Notice.

 

Additional Information

For more information about Tacoma's Business & Occupation Tax use our Guide to Business and Occupation Tax or call Tax & License at (253) 591-5252