Bellingham, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Extracting/manufacturing/wholesaling/retailing rate
- 0.17% of gross proceeds
- All other business activity (services) rate
- 0.44% of gross income
- Governing sections
- BMC 6.04.050, administered via 6.05
- Multiple classifications
- taxed under each subsection
Summary
Bellingham taxes gross receipts by business classification: extracting, manufacturing, wholesaling, and retailing pay 0.17%, while every other business activity, including most services, pays 0.44% under the city's business and occupation tax.
D. Upon every person engaging within the city in the business of making sales at retail or retail services, the amount of tax ... shall be equal to the gross proceeds of such sales of the business ... multiplied by the rate of seventeen one-hundredths of one percent. E. Upon every other person engaging within the city in any business activity other than or in addition to those enumerated in the above subsections, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of forty-four one-hundredths of one percent.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 2026-06-015, passed June 1, 2026).
Full Breakdown
Bellingham levies its business and occupation tax under BMC 6.04.050 by classifying every business activity conducted in the city. Extracting, manufacturing, wholesaling, and retailing/retail services are each taxed at seventeen one-hundredths of one percent (0.17%) of value or gross proceeds. Every other business activity not enumerated in those subsections, including most professional, personal, and other services, falls into a residual classification taxed at forty-four one-hundredths of one percent (0.44%) of gross income. A business with activity in more than one classification owes tax under each applicable subsection. Administration, registration, and returns are governed by the companion provisions in BMC Chapter 6.05.
Violations & Fines
Failing to file a return or remit B&O tax by the due date subjects a taxpayer to penalties and interest assessed by the city finance director under BMC Chapter 6.05.
Frequently Asked Questions
What B&O tax rate applies to a Bellingham retail business?
Does Bellingham tax service businesses at a different rate than retailers?
Sources & Official References
Other rules in Bellingham
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