DUMB LAW ALERT- The State of Washington is now charging a 9%-10% Tax on Advertis
By Brandon Fishman · February 10, 2026 · Curated by George's Blog
DUMB LAW ALERT-
The State of Washington is now charging a 9%-10% Tax on Advertising Dollara you spend on Amazon if your company is based in Washington. I could not think of a dumber law when it comes to business. The is a good way to have every single company that does advertising move out of your state. Amazon already charges nearly 40% all in for fees and now another 10% on top of the ad spend.
This is the worst business bill I have ever seen. States could actually give you a tax credit for money you spend on ads to bring business to their state, not penalize you. What do you guys think? Details below
This notification only applies to customers with a Washington (US) based business address
Dear Customer,
On May 20, 2025, Washington Senate Bill 5814 was signed by Governor Bob Ferguson, which expands the existing sales tax to include advertising services. The Washington state law specifically includes online advertising services as taxable retail sales and encompasses all aspects of online advertising production and placement services.
As a result of this Washington state law, a number of your Amazon Ads purchases will be subject to Washington state sales tax beginning October 1, 2025, including all Display and Sponsored Ads products.
FAQs
1. Who is impacted by this Washington state law?
While we are waiting on specific guidance from the Washington Department of Revenue (DOR), we expect this change to only affect customers with billing addresses in Washington that do not have a valid exemption certificate.
2. Does this Washington state law only apply to Amazon?
No, Bill 5814 applies to all businesses that sell in-scope advertising products and services to customers based in Washington.
3. How is Washington Sales Tax calculated?
Washington Sales Tax is calculated based on the gross sales value and the rate applicable in the location of your Washington billing address, including the specific county, district, and/or municipality. The rates applied will range between 9% and 10.35%.
4. Will I see Washington Sales Tax displayed on my invoice?
Yes, beginning October 1, 2025, customers subject to Washington Sales Tax will see an aggregated value labeled ‘US Sales Tax’ on their invoice.
5. Will this Washington state law only impact my US spend?
No, Bill 5814 applies to US and non-US advertising businesses selling inventory to customers based in Washington. As a result, you may see Washington Sales Tax charged on your invoices from non-US Amazon Ads entities.
6. What is a valid exemption certificate?
Valid exemption certificates for advertising services are expected to include:
Reseller certificates: you are an agency or reseller that purchases advertising services from Amazon for the purpose of resale to advertisers.
Multiple points of use (MPU) certificates: you use the advertising services you purchase from Amazon across multiple jurisdictions.
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