Tacoma levies a local business and occupation tax on gross receipts in addition to the Washington state B and O tax, with rates that vary by classification such as retailing, wholesaling, services, and manufacturing under TMC Chapter 6A.
Tacoma Municipal Code Chapter 6A imposes a local business and occupation tax similar to the Washington Department of Revenue B and O system. Businesses report gross receipts under classifications such as retailing, wholesaling, services and other activities, manufacturing, printing, and extracting. Each classification has its own rate, and businesses operating across multiple categories file by classification. Tacoma offers a small-business threshold that exempts gross receipts below an annual floor. Multi-jurisdiction businesses must apportion service revenue among Washington cities under the Model Service Apportionment ordinance.
Misclassifying revenue, failing to file quarterly returns, or under-reporting gross receipts can lead to back taxes, interest, and penalties up to 39 percent under Tacoma's tax administration rules.
See how Tacoma's business tax classification rules stack up against other locations.
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