Business & Occupation Tax
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The Bremerton business and occupation tax (B & O tax) , or gross receipts tax, is applied to the gross revenue that businesses earn within the city. It is measured on the value of products, gross proceeds of sales or gross income the business receives.
The Bremerton B & O tax is not the same as the Washington state B & O tax. You must file your Bremerton taxes separately from your state taxes. To learn more about the state B & O tax, visit the Washington State Department of Revenue's website.
Overview
If you do business in Bremerton, you must:
- have a Bremerton business license
- file a business license tax return
In 2022, the first $1,000,000 of taxable gross revenue that you earn in Bremerton is exempt from Bremerton B & O tax.
You are required to file a tax form even if there is no balance due.
The Bremerton B & O tax varies by business type:
You are required to file a tax form even if there is no balance due.
Tax Rate
The Bremerton B & O tax varies by business type:
| Type | Rate |
|---|---|
| Retail Sales and Retail Services | 0.00125 (.125%) |
| Wholesale | 0.00160 (.160%) |
| Service | 0.00200 (.200%) |
| Manufacturing | 0.00160 (.160%) |
How the Tax Works
Your gross revenue determines the amount of tax you pay. To calculate this amount, multiply your taxable gross revenue amount by the tax rate.
For example, the 2019 retail B & O tax rate is 0.00125 (.125%). If your business grosses $250,000 in Bremerton during 2019 you would list $250,000 as your gross revenue, then deduct the allowed exemption of $200,000 from the gross. The taxable revenue is $50,000 with is multiplied by the tax rate .00125, for a tax liability of $62.50.
| 2019 Gross | 250,000 |
| Less Exemption | -200,000 |
| Taxable Revenue | = 50,000 |
| Multiply by Tax Rate | x 125% |
| 2019 Tax Liability | = 62.50 |
Past Exemptions
| Year | Exemption |
|---|---|
| 2022 | $1,000,000 |
| 2021 | $240,000 |
| 2020 | $220,000 |
| 2019 | $200,000 |
| 2018 | $180,000 |
Read the code
You can read the Bremerton Municipal Code (BMC) Chapter 3.48 for details about the Bremerton business and occupation tax.
Other Resources
By clicking on the name of the city, Access Washington will help you determine the tax and licensing requirements for that city in Washington State.
The Washington State Office of Regulatory Assistance was created to help businesses navigate the permitting and licensing required by local cities, counties, state and federal agencies. They also provide small business assistance and strive to help businesses plan, run, grow and even close a business in Washington State.
The U.S. Small Business Administration provides information on how to buy, merge or acquire a business, how to obtain loans and funding, as well as material regarding setting up a business as a veteran or as a minority in Washington State.
Tax Returns
You can now file your City taxes online at https://taxandlicense.bremertonwa.gov/.