Alert

City of Vancouver, Washington, Enacts New Business and Occupation Tax

Matt Graham, Senior Manager, State & Local Tax Services
Ben MacPherson, Senior Manager, State & Local Tax Services

December 17, 2025
LinkedIn Share Button Twitter Share Button Other Share Button Other Share Button

Starting January 1, 2026, retail sales and service businesses in the City of Vancouver, Washington, will face a 0.1% business and occupation (B&O) tax on gross retail receipts after credits and exemptions.

Affected businesses should prepare for new filing and payment obligations that differ from or add to state-level requirements.

What Are the Key Points of the New Vancouver B&O Tax?

  • Affected businesses. The tax applies to retail sales—selling goods directly to consumers—and retail services such as construction, landscaping, and live presentations.
  • Filing requirements. All retail businesses must file quarterly tax returns, even if no revenue was earned during the period.
  • Payment thresholds. Businesses with annual gross receipts of $50,000 or less, or quarterly receipts of $12,500 or less, are below the payment threshold but must still file returns. Those exceeding these thresholds must both file and pay the tax.
  • Online filing platform. The City of Vancouver has partnered with Localgov to provide a secure online system for electronic filing, payment processing, account management, automatic tax calculations, and payment reminders.

Next Steps

Vancouver joins a growing number of Washington cities seeking to diversify revenues by implementing a local version of the B&O tax that’s been well-established at the state level.

As this happens, it’s crucial for companies that do business in the City of Vancouver to understand the new local B&O tax filing and payment requirements that take effect January 1, 2026.

We’re Here to Help

For questions or assistance navigating Vancouver’s B&O tax obligations, please contact your firm professional.

Additional Resources

Ask a Question

The material appearing in this communication is for informational purposes only and should not be construed as advice of any kind, including legal, accounting, tax, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although these materials have been prepared by professionals, the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Changes in tax laws or other factors could affect the information provided in this communication.

Related Topics

Alert
Proposition 2 Raises Tax Threshold and Rates
Changes to Seattle’s business and occupation tax target large businesses and are expected to generate $80 million annually.
Alert
Alert
Interim Guidance on Washington Services Sales Tax
Effective October 1, 2025, many services in Washington State became subject to sales tax; see how this may affect your business.
Alert
Alert
Washington International Seller Voluntary Disclosure
Explore how Washington State’s new voluntary disclosure program for international sellers can help businesses reduce tax obligations and regain compliance.
Alert
Alert
Washington DOR Clarifies Sales Tax Treatment
See interim guidance for existing contracts for Washington State services newly liable for retail sales tax under ESSB 5814.
Alert
View More

Contact Us with Questions

Baker Tilly US, LLP, Baker Tilly Advisory Group, LP and Moss Adams LLP and their affiliated entities operate under an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly Advisory Group, LP and its subsidiaries, and Baker Tilly US, LLP and its affiliated entities, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP and Moss Adams LLP are licensed CPA firms that provide assurance services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. ISO certification services offered through Moss Adams Certifications LLC. Investment advisory offered through either Moss Adams Wealth Advisors LLC or Baker Tilly Wealth Management, LLC.