Renton, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Retailing rate
- .070% (.00070) of gross proceeds
- Wholesaling/manufacturing/extracting rate
- .121% (.00121) of gross income
- Service and other activities rate
- .121% (.00121) of gross income
- Small business exemption
- $20,000/year or $5,000/quarter
- Expanded threshold
- $500,000/year under RMC 5-25-4.C
- 2024 annual tax cap
- $11,000,000 per taxpayer
- Governing code
- RMC Chapter 5-25
Summary
Renton taxes businesses under RMC 5-25-4 by activity class: extracting and manufacturing at .121%, wholesaling at .121%, retailing at .070%, and services and other activities at .121% of gross income, with a $20,000 annual small-business exemption.
4. Upon every person engaging within the City in the business of making sales at retail; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business, without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of .070 of one percent (.00070). ... 7. Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of .121 of one percent (.00121).
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 6197, passed August 10, 2026).
Full Breakdown
The City of Renton's Business and Occupation Tax Code, RMC Chapter 5-25, levies a tax on every person for the privilege of engaging in business activities within the City, whether the business's office is inside or outside city limits. A sets seven separate rate classifications applied to gross proceeds of sale, gross income, or value of products depending on activity type. 00121) of the value of products extracted or manufactured within the City. 121% of gross proceeds of wholesale sales. 00070) of gross proceeds of retail sales.
121% of gross income. 121% of gross proceeds. 121% of gross income. A business engaged in activities spanning more than one classification is taxable under each applicable subsection per RMC 5-25-5. C raises that threshold to $500,000 per calendar year for otherwise-taxable activities. D caps annual tax liability for a single taxpayer at $9,000,000 for 2023 and $11,000,000 for 2024, and for 2025 onward discounts rates 75% once a taxpayer has paid $12,000,000 in a given year. Businesses must obtain the business license required under RMC 5-5-3 before engaging in taxable activity in the City.
Violations & Fines
Returns must be filed and tax paid by the due date under RMC 5-26-14, whether or not tax is owed; late filings draw a penalty under RCW 82.32.090(1) plus interest under RCW 82.32.050. Operating without the license required by RMC 5-5-3 triggers a penalty under RCW 82.32.090(4) unless the business licenses before the Administrator notifies it of the deficiency. The Administrator may estimate tax owed from available facts if a taxpayer fails to file, and that assessment is deemed prima facie correct; unpaid citations may be pursued as criminal complaints under the Tax Administrative Code.
Frequently Asked Questions
What tax rate applies to a Renton retail business?
Does a small Renton business have to pay B&O tax?
What classification covers a Renton service business, like consulting?
What happens if a Renton business fails to file its B&O tax return?
Sources & Official References
Other rules in Renton
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