Seattle and Tacoma Lead in U.S. Sales Tax Rates, Driving Shoppers to Tax-Free Oregon
According to the Washington Examiner, Seattle and Tacoma have the highest combined state and local sales tax rates among major U.S. cities, according to a recent report by the Tax Foundation. Seattle’s rate is 10.35%, which includes a 6.5% state tax and an extra 3.85% city tax. This rate went up recently when King County added a small tax for cultural programs. Tacoma has a rate of 10.3%, unchanged since 2021.
Due to the high sales taxes in Seattle and Tacoma, many residents are traveling to Oregon to shop, where there is no sales tax. This is particularly common for large purchases like appliances and electronics, which are cheaper in Oregon because of the tax difference. Shoppers are seeking ways to save money by buying in areas with lower taxes.
READ ALSO: $1 Billion in Production Spending and 8,500 Jobs: Will Nevada’s Tax Breaks Secure Hollywood’s Future?
10.35%: Seattle and Tacoma’s Combined Sales Tax Rate: How Washington’s Highest Rate Affects Local Shopping Habits (PHOTO: The Center Square)
Washington Cities Like Mill Creek and Lynnwood Face Even Higher Sales Taxes, Impacting Local Businesses
Mark Harmsworth from the Washington Policy Center says that while Seattle and Tacoma have high rates, some smaller cities in Washington, like Mill Creek and Lynnwood, actually have even higher sales taxes of 10.6%. He points out that these high taxes can make it hard for businesses and might drive them to move to other areas with lower tax rates.
READ ALSO: $5,000-$7,500 in Tax Credits: Oklahoma’s Parental Choice Program Raises Concerns Over Accreditation Standards
