Local & State Taxes

Local & State Taxes

No Local Business & Occupation (B&O) Tax

To encourage business growth and retention, the City of Ellensburg does not administer or collect local Business and Occupation Taxes. However, businesses are still required to pay the B&O tax imposed by the State of Washington. The State Business & Occupation Tax is .00484 on gross receipts (covering most manufacturers). Business & occupation tax | Washington Department of Revenue

Businesses can opt to keep the B&O dollars paid to the State in Ellensburg through the Main Street B&O Tax Credit Incentive Program. By filling out a form, a business' B&O taxes can be contributed to the Ellensburg Downtown Association.

Sales & Use Tax

Ellensburg’s local sales and use tax rate is: 8.4% (2022)

  • .85% City of Ellensburg
  • .15% County
  • .1% Criminal Justice
  • .1% Juvenile Detention
  • .3% Public Safety
  • .1% Chemical Dependency / Mental Health (Kittitas County)
  • .1% Affordable Housing
  • .2% Public Transit
  • 6.5% State

Property Tax Rates

Ellensburg Regular Levy Rate (2021) = $1.729159 per $1,000. A homeowner with a home assessed at $350,000 would have paid $605.21 in 2021.

Personal Income Tax

Washington State has no personal income tax or capital gains tax.