Washington taxes SaaS, digital goods, and remote access software, and since October 2025 has extended retail sales tax to IT services, custom software, and digital advertising under ESSB 5814. Here is what digital service providers need to know to stay compliant in 2026.

Digital goods sales tax is one of the most fragmented compliance challenges in the U.S. This playbook breaks down how states tax downloads, licenses, and perpetual access, and how a tax engine keeps up when the rules keep changing.