Washington Sales Tax on Construction (2026): Tax on the Whole Remodel
Why a Washington contractor charges sales tax on the full remodel price, labor included, and three jobs worked at the 6.5% state rate.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Washington
Whole job taxed
Collect retail sales tax from the homeowner on the full contract price, labor included. Buy materials for resale.
6.5%
6.5% plus local
Itemizing or time and materials
Itemizing doesn't exempt labor.
Reseller permit
Source: WA DOR, Custom construction (DOR construction guide)
“must collect retail sales tax from the landowner on the gross contract price”
“Sales tax is considered collected only when stated separately on contract documents”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $780 | $0 |
| Kitchen $40,000 job, $15,000 materials | $2,600 | $0 |
| Addition $90,000 job, $35,000 materials | $5,850 | $0 |
On the kitchen: 6.5% on the full $40,000, labor included.
How it works in Washington
The whole price
Labor, materials, subcontracts and markup are all in the taxable price.
Materials
Bought for resale with a reseller permit, so the tax is collected once, on your price to the owner.
State it separately
Show the tax as its own line on the contract and invoice, or it isn't considered collected.
Also check
- Local sales tax depends on the job's location, not your shop's.
- Speculative building on your own land is a different rule; this page covers work for a homeowner.
- Business and occupation tax is a separate tax on your gross income.
Washington sales tax questions
Do contractors charge sales tax on labor in Washington?
Yes. Retail sales tax applies to the full contract price for a home remodel, labor included.
Do Washington contractors pay sales tax on materials?
Not if they buy them for resale with a reseller permit and collect tax on the job price.
What rate applies to a Washington remodel?
The 6.5% state rate plus the local rate where the job is.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.