City Taxes
Here are tax filing resources and information for the City of Tacoma.
Filing Frequencies
Filing frequencies are assigned based on what you estimate your annual gross income to be for your business. After you registered your business with the City, we sent you a welcome letter. The welcome letter included your:
- City Account Number
- Business tax filing frequency (monthly, quarterly, annual)
- Information on how to file and pay tax returns and license renewals
Due Dates
- Monthly returns are due the last day of the month following the tax month (e.g. June tax return is due July 31)
- Quarterly returns are due the end of the month following the tax quarter (e.g. Quarter 1 tax return is due April 30.)
- Annual returns are due by April 30 (e.g. Annual 2024 tax return is due April 30, 2025)
If the due date falls on a weekend or legal holiday, the due date is extended to the next business day.
Tax Classifications
Business income is reported under a tax classification depending on the type of business activity. If you conduct multiple activities, it may be necessary to report under several B&O tax classifications. For assistance, please contact us.
Tax classifications are based on what type of business you conduct. To find your business’s classification(s), check this list of common business activities and associated B&O tax classifications.
File & Pay your B&O, Gambling and/or Utility Tax online with FileLocal.
Business Tax Classifications and Rates
| Business & Occupation Tax Classification | Rate |
|---|---|
| Retailing | 0.00153 |
| Wholesaling | 0.00102 |
| Service & Other | 0.004 |
| Manufacturing | 0.0011 |
| Retail Service | 0.004 |
Utility Tax Classifications and Rates
| Utility Tax Classification | Current |
|---|---|
| Telephone Business | 7.5% |
| Cellular or Pager | 7.5% |
| Natural Gas | 7.5% |
| Cable Service | 8.0% |
| Franchise Fee (Cable)Â | 5.0%Â |
| PEG Fee (Cable)Â | 1.0%Â |
| Solid Waste Collection | 8.0% |
| Electricity | 7.5% |
| Water | 8.0% |
| Solid Waste Customer Excise | 6.0% |
Payment OptionsÂ
-
Pay online with FileLocal, the easiest way to file. FileLocal will calculate what you owe making it simpler to file your taxes. User fees apply.
-
Please send your completed tax return and payment to:
City of Tacoma
Tax & License
PO Box 11640
Tacoma, WA 98411-6640For the payment to be considered timely, the USPS postmark date must be on or before the tax return’s due date.
-
If you are paying in-person on and around the tax return due dates, please allow up to one hour to process your payment.
You may also drop off your payment in the Payment Drop Box located in the lobby. The Tax & License office is located at 747 Market Street, Room 212, Tacoma, WA 98402.
Payment is due when filing; cash, check or credit cards are accepted.
Schedule of Amended Figures
If you need to amend multiple periods (e.g. a year or more), an alternative to filing individual returns is to submit a schedule of amended figures. To properly prepare a schedule, show all figures as they should have been reported on the original returns. The schedule must provide the City with sufficient information to compute the differences in income, deductions, local taxes and any penalties for as many return periods as needed.
When submitting a schedule of amended figures please remember to:
- List the contract account number for the business on all pages of the schedule.
- Clearly indicate which periods are being amended.
- Report all information using the same frequency as that on your original tax return (unless instructed otherwise).
- Calculate tax using rates shown on your original return. Please include the rates on your schedule.
Include a complete explanation for adjustments.
Schedules can be sent electronically to taxinfo@tacoma.gov or by mailing them to the address listed in step 6 below.
Amending Individual Tax Returns
At this time, you are not able to file amended returns online. Please follow the steps below.
- Make a copy of the return you need to correct.
- Draw a single line through any incorrect information and write the correct information to the side or above.
- Recalculate your “Totals.”
- Attach a short letter explaining what you are changing and why.
- If you are amending your return and you owe money, include a check when you mail the amended return.
- Mail the amended return to:
City of Tacoma
Tax & License
747 Market Street, Room 212
Tacoma, WA 98402
Making Payment
Payments for additional taxes due can be made over the phone after an auditor has reviewed the schedule provided or by mailing a check with your schedule of amended figures.
What Happens Next
An auditor will review the amended returns submitted. The following penalties may apply to underreported amounts:
- Late payment returns penalties of up to 29 percent if you originally filed no business or zero returns, were on a non-reporting status, or your original returns were filed late.
- 5 percent assessment penalty for substantially underpaid tax if the underreported tax is underpaid by at least 20 percent.
The City will only honor refunds dating back four years before the year in which the refund request is made. TMC 6A.10.100
Late Filers Frequently Asked Questions
-
The due date for each tax return is printed on the return itself. Tax returns are considered timely if the USPS postmark cancellation stamp is dated no later than the date the return and payment are due.
-
The City is required to assess a nine percent late penalty if the tax due on a return filed by a taxpayer is not paid by the due date. Late penalties of 19 to 29 percent proceed as follows:
- 19 percent penalty due after the last day of the month following the return’s due date.
- 29 percent penalty due after the last day of the second month following the return’s due date. Note: The minimum penalty for late payment is $5.Â
Interest is also required to be paid when filing late. Find current interest rates.
-
Yes, per TMC Chapter 6B.10.095 Tax & License has the authority to waive delinquent or late return penalties under limited circumstances when the underpayment of tax, or the failure to pay any tax by the due date, was the result of circumstances beyond the control of the taxpayer.
Lack of funds, being unaware that taxes are due after registering, or not receiving the tax return notice is generally would NOT qualify for a penalty waiver. If you fall under these reasons, please use one of our available Payment Options.
Note: Before requesting a waiver of penalties, your account must be current (except for penalties) and all tax returns must be filed (if applicable). Requests will be denied if the account is not current.