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Business & Occupation

The City Business & Occupation (B&O) tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sales, or gross income of the business.  Washington, unlike many other states, does not have an income tax.  Both Washington and Tacoma's B&O tax are calculated on the gross income from activities. This means there are no deductions from the B&O taxable income for labor, materials, or other costs of doing business.

 

How to Report

The City of Tacoma has filing thresholds based on a businesses gross income.  If you are required to file and pay taxes there are online, in person and mail options.  

 

Tax Classifications and Rates

All business activity is reported under a certain tax classification and each tax classification has its own tax rate. 

 

Tax Credits

Tax credits are created by the City Council for a specific purpose.  Credits provide incentives to businesses by reducing the amount of B&O tax paid to the City.  

 

Allocation and Apportionment

Specific rules for allocating and apportioning income when a business engages in business activity within multiple jurisdictions will apply.