Auburn, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Retailing rate
- 0.050% of gross proceeds
- Wholesaling rate
- 0.180% of gross proceeds
- Manufacturing/extracting rate
- 0.100% of value of products
- Retail services rate
- 0.150% of gross proceeds
- Service and other rate
- 0.100% of gross income
- Small-business exemption
- $500,000 company-wide gross receipts
- Effective date of current rates
- January 1, 2022, 12:01 a.m.
Summary
Auburn taxes gross receipts by classification under ACC 3.53.040: 0.10% on extracting and manufacturing, 0.18% on wholesaling, 0.05% on retailing, 0.15% on retail services, and 0.10% on the catch-all service and other classification. Businesses under $500,000 in company-wide gross receipts owe nothing.
there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the city of Auburn... A. Gross Receipts Tax. 1. Upon every person engaging within the city in business as an extractor... multiplied by the rate of 0.100 of one percent (0.001)... 3. Upon every person engaging within the city in the business of making sales at wholesale... multiplied by the rate of 0.180 of one percent (0.0018). 4. Upon every person engaging within the city in the business of making sales at retail... multiplied by the rate of 0.050 of one percent (0.0005)... 6. Upon every person engaging within the city in the business of making sales of retail services... multiplied by the rate of 0.150 of one percent (0.0015).
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 7023, passed July 6, 2026).
Full Breakdown
53, sorts every business into one of several tax classifications and applies a different rate to each, effective January 1, 2022. 001) of the value of products extracted or manufactured within the city, regardless of where they are ultimately sold. 0005) on gross retail sales proceeds. 100 percent of gross income. 150 percent of gross proceeds. 040(A)(7). 040(A)(8). 080. 10 per square foot per quarter, but only the higher of the gross receipts tax or the square footage tax is owed, never both. 040(C) exempts businesses whose company-wide gross receipts are $500,000 or less annually, and out-of-city businesses whose Auburn-sourced income is $4,000 or less. 060 to prevent double taxation when the same gross receipts are taxed by extraction, manufacturing, and sale.
Violations & Fines
Misclassifying a business activity, underreporting gross receipts, or failing to register and remit the correct B&O tax classification exposes a taxpayer to back taxes plus interest and penalties assessed by the Auburn Finance Department under the city's general tax administration provisions in ACC Chapter 3.53. The city can audit classification and apportionment claims and assess deficiencies for unpaid amounts.
Frequently Asked Questions
What tax rate does a retailer pay in Auburn?
Is my small business exempt from Auburn's B&O tax?
What classification covers a software or consulting business?
Can a business owe tax under more than one classification?
Sources & Official References
Other rules in Auburn
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Business Tax Classification in Nearby Cities
How other cities in King County handle business tax classification.