Article
City of Vancouver, Washington, enacts new business and occupation tax
Dec. 17, 2025 · Authored by Matt Graham, Ben MacPherson
Starting Jan. 1, 2026, retail sales and service businesses in the City of Vancouver, Washington, will face a 0.1% business and occupation (B&O) tax on gross retail receipts after credits and exemptions.
Affected businesses should prepare for new filing and payment obligations that differ from or add to state-level requirements.
Next steps
Vancouver joins a growing number of Washington cities seeking to diversify revenues by implementing a local version of the B&O tax that’s been well-established at the state level.
As this happens, it’s crucial for companies that do business in the City of Vancouver to understand the new local B&O tax filing and payment requirements that take effect Jan. 1, 2026.
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