TAXES

Businesses in Skagit County and Washington State do not pay the following taxes:

  • No corporate income tax
  • No personal income tax
  • No Value Added Tax (VAT)
  • No inventory tax
  • No tax on interest, dividends or capital gains
  • No local business and occupation (B&O) tax

Business and Occupation Tax (B&O)

Businesses in Skagit County pay Washington State’s B&O tax, which is a gross receipts tax measured on the value of products, gross proceeds of sale, or gross income of the business.  Primary rates and classifications include:

  • Manufacturing: 0.00484
  • Wholesaling: 0.00484
  • Retailing: 0.00471
  • Services: 0.015

The Washington State Department of Revenue has a complete listing of specialized B&O tax classifications.

Property Tax

Businesses in Skagit County pay state and local property taxes.  More information on local property taxes is available from the Skagit County Assessor’s Office.  For complete information, please visit the Washington State Department of Revenue.

Property tax rates in Skagit County range from 9.9% to 14.89%, depending on individual jurisdictions’ property tax rates and levy assessments.  More information is available from the Skagit County Assessor’s Office.

Local taxes and taxing districts in Skagit County include hospitals, schools, ports, fire, library, sewer, cemetery, dike, drainage, park, flood control, noxious weed, and water districts.  For more information on these, please contact EDASC or refer to specific county, city, town and port websites.

Sales and Use Tax

Skagit County’s combined state and local sales tax rate is 8.5% in most county communities, and 8.1% in unincorporated Skagit County.  These rates are lower than those in the greater Seattle metropolitan region, which average 9.5%.  The Use Tax, applied on taxable items purchased in another state if that state did not collect sales tax, is applied at the same rate as the Sales Tax.

  • Local: 1.6% - 2.0%
  • State: 6.5%