Taxation of Software in Washington

Transaction of computer software is taxable in Washington State. Both custom and customized software products are subject to tax. Software written for one specific customer other than those which are considered canned is not taxed. In Washington custom computer programs are not subject to sales tax but are subject to Washington business and occupation tax. Installation for canned software is tax exempt for sales tax purposes if it is a separately stated charge.

The following questions have been addressed in this article:

Is canned software taxable in Washington State?
Is custom software taxable in Washington State?
Is customized software taxable in Washington State?
Is downloaded software taxable in Washington State?

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