Sales tax on labor in Washington: labor taxed on repairs, installation and new construction

The tax in Washington

How the tax works in Washington: In Washington, construction and repair work done for the owner (a 'prime contractor' job) is itself a retail sale: the contractor collects sales tax on the full contract price, labor included.

Repairing a thing in Washington

Taxed. Repairing, cleaning or installing a thing for a customer (refrigerators, machines and so on): collect sales tax on the total charge and even if no parts are used.

• “The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers” — RCW 82.04.050, page date: current version
• “are required to collect the retail sales tax upon the total charge made for the rendition of such services, even though no tangible personal property in the form of materials or supplies is sold or used in connection therewith” — WAC 458-20-173 Installing, cleaning, repairing or otherwise altering or improving personal property of consumers, no date on the page
• “In general, the repairing of any personal property, such as radios, refrigerators, machines, watches and jewelry and other articles.” — WAC 458-20-173, no date on the page

Repairing a home or building in Washington

Taxed. Repairing a building for the owner is a retail sale. As the prime contractor you collect sales tax from the customer on the whole price: materials. Janitorial services are the exception (not retail sales).

• “The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation” — RCW 82.04.050 'Sale at retail,' 'retail sale', page date: current version (amended 2026 c 238)
• “The cleaning, fumigating, razing, or moving of existing buildings or structures, but does not include the charge made for janitorial services” — RCW 82.04.050, page date: current version
• “Prime contractors are required to collect from consumers the retail sales tax measured by the full contract price.” — WAC 458-20-170 Constructing and repairing of new or existing buildings, page date: filed 9/8/87
• “Prime contractors must collect retail sales tax from the landowner on the gross contract price (without deduction of costs incurred). Billing invoices must separately state the sales tax.” — Custom construction (WA Department of Revenue industry guide), no date on the page

Installation work in Washington

Taxed. Installing or attaching any item in or to a building counts as construction for sales tax, whether or not the item becomes part of the building. Installing a thing for a customer is also taxable. Collect sales tax on the full charge.

• “The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation” — RCW 82.04.050 'Sale at retail,' 'retail sale', page date: current version (amended 2026 c 238)
• “The installing, repairing, cleaning, altering, imprinting, or improving of tangible personal property of or for consumers” — RCW 82.04.050, page date: current version

New construction in Washington

Taxed. Building on the customer's land (custom construction): collect sales tax on the gross contract price.

• “The constructing, repairing, decorating, or improving of new or existing buildings or other structures under, upon, or above real property of or for consumers, including the installing or attaching of any article of tangible personal property therein or thereto, whether or not such personal property becomes a part of the realty by virtue of installation” — RCW 82.04.050 'Sale at retail,' 'retail sale', page date: current version (amended 2026 c 238)
• “Prime contractors are required to collect from consumers the retail sales tax measured by the full contract price.” — WAC 458-20-170 Constructing and repairing of new or existing buildings, page date: filed 9/8/87
• “Neither does the sales tax apply to such sales, since such a sale involves no charge made for construction for a consumer, but the price paid is for the sale of real estate.” — WAC 458-20-170, page date: filed 9/8/87
• “Prime contractors must collect retail sales tax from the landowner on the gross contract price (without deduction of costs incurred). Billing invoices must separately state the sales tax.” — Custom construction (WA Department of Revenue industry guide), no date on the page

Listing labor separately on the bill in Washington

Does not change the answer. The tax itself must be shown separately on the contract or invoice.

• “are required to collect the retail sales tax upon the total charge made for the rendition of such services, even though no tangible personal property in the form of materials or supplies is sold or used in connection therewith” — WAC 458-20-173 Installing, cleaning, repairing or otherwise altering or improving personal property of consumers, no date on the page
• “Prime contractors must collect retail sales tax from the landowner on the gross contract price (without deduction of costs incurred). Billing invoices must separately state the sales tax.” — Custom construction (WA Department of Revenue industry guide), no date on the page

Materials on jobs in Washington

Contractor resells the materials: materials that become part of the finished job are bought tax-free with a reseller permit, and sales tax is collected from the customer on the full price.

• “The purchase of materials by custom contractors that will become part of the completed project are purchases for resale (wholesale). Such purchases are not subject to retail sales tax.” — Custom construction (WA DOR), no date on the page

Trade services Washington taxes

The services Washington's own pages name as taxed, each in the page's words:

• Landscaping: “Landscape gardeners and horticulturists, except horticulturists performing services for farmers, must generally collect and report the retail sales tax upon the full contract price when performing landscaping or horticultural services for consumers.”
• Painting, papering, repair, septic tank cleaning and snow removal: “Cleaning, fumigating, razing or moving structures, including painting and papering, cleaning and repairing furnaces and septic tanks, and snow removal.”
• Cleaning exterior walls of buildings: “The tax does apply, however, in respect to contracts for cleaning septic tanks or the exterior walls of buildings”
• Repair and cleaning: “Persons engaged in the business of installing, cleaning, decorating, beautifying, repairing or otherwise altering or improving tangible personal property of consumers or for consumers are required to collect the retail sales tax upon the total charge made for the rendition of such services”

Where Washington's list of services comes from

• “The cleaning, fumigating, razing, or moving of existing buildings or structures, but does not include the charge made for janitorial services” — RCW 82.04.050, page date: current version
• “Landscape maintenance and horticultural services but excluding (i) horticultural services provided to farmers” — RCW 82.04.050, page date: current version
• “The retail sales tax does not apply to charges made for janitorial services nor for the mere leveling of land used in commercial farming or agriculture.” — WAC 458-20-170, page date: filed 9/8/87
• “Cleaning, fumigating, razing or moving structures, including painting and papering, cleaning and repairing furnaces and septic tanks, and snow removal.” — Services subject to sales tax (WA DOR), no date on the page
• “Landscape gardeners and horticulturists, except horticulturists performing services for farmers, must generally collect and report the retail sales tax upon the full contract price when performing landscaping or horticultural services for consumers.” — WAC 458-20-226 Landscape and horticultural services, no date on the page

What was not checked for Washington

• Pest control was not confirmed as a taxed service from an official Washington page; the statute names only fumigating of structures.

Check with the Washington State Department of Revenue

Before you bill: check with the Washington State Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Washington with every state's answer, or with its neighbours just below.

Next door to Washington

• Idaho: home repair not taxed, installation depends
• Oregon: no sales tax

Official sources for Washington

• RCW 82.04.050 — current version
• WAC 458-20-170 — filed 9/8/87
• WAC 458-20-173 — no date shown
• Custom construction (WA DOR) — no date shown
• Services subject to sales tax (WA DOR) — no date shown
• WAC 458-20-226 Landscape and horticultural services — no date shown

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