Does Issaquah Collect a B&O Tax?
Yes. The City of Issaquah imposes a Business & Occupation (B&O) tax on businesses conducting activities within city limits.
Do I Need a Business License If My Office Isn’t in Issaquah?
Yes. Even if your business is located outside of Issaquah, you are still required to obtain a City of Issaquah business license if you conduct any business activities within the city—such as making deliveries, providing services, or performing contract work.
How Long Is the Business License Valid?
The business license is valid for one year and must be renewed annually.
How Often Do I Need to File?
B&O tax returns must be filed on a quarterly basis. Payment of the tax is due with each filing, based on your gross receipts during that reporting period.
How Much Is the B&O Tax?
Issaquah’s B&O tax is based on gross receipts, not net income. The current tax rates range from 0.08% to 0.10% depending on your business classification. Be sure to check the city’s B&O tax rate schedule to determine your applicable category.
Are Any Businesses Exempt?
Yes, but only under certain conditions.
Businesses with $5,000 or less in taxable gross receipts per quarter are exempt from paying the B&O tax.
However, these businesses are still required to file quarterly returns by the due dates, even if no tax is owed.
Additional Tips:
- File on time to avoid penalties.
- Keep detailed records of gross receipts and business activity within Issaquah.
- If your business operates in multiple jurisdictions, you may need to track receipts by location to ensure accurate reporting.