Deregistration guide
Can I cancel my sales tax registration in Washington?
If you registered for a sales tax permit in Washington to be safe and most of your returns now read $0, you may be paying to file in a state you no longer owe. Here's when you can cancel in Washington — and how to do it without tripping a penalty.
- Can you deregister below threshold?
- Yes, after trailing nexus
- Trailing-nexus window
- ≈ 12 months
- Final return required
- Yes
- How to cancel
- the online portal or form 700160
- Tax authority
- Washington State Department of Revenue
Source: State trailing-nexus rule
Short answer
Yes — once your nexus has genuinely ended. Canceling your Washington sales tax registration makes sense once you have completed the trailing nexus period — meaning you dropped below $100,000 in Washington gross receipts in the current year and had no nexus in the prior year, so your obligation has fully expired. The key catch is Washington's one-year trailing nexus rule: if you had nexus in Year 1, you must continue collecting, filing, and remitting through December 31 of Year 2 before you can legitimately close your account, and you must file a final excise tax return covering all outstanding periods.
Nexus & savings calculator
Estimate whether you still have nexus in Washington — and what canceling could save.
Washington no longer counts transactions — only sales matter here.
- Physical presence
- Sales over $100,000
- Transactions (not counted here)
Based on these numbers you likely no longer have nexus in Washington. You can usually deregister after clearing the trailing-nexus window and filing your final return.
Trailing nexus: Washington applies trailing nexus — expect to keep filing for roughly 12 months after your nexus ends. Confirm the exact window before canceling.
You could stop paying
$600/ yr
Estimate only — general education, not tax advice. Confirm with Washington's tax authority before you register or deregister.
Do you still have nexus in Washington?
You can only cancel once your obligation has ended. Two things create it: physical presence (inventory, an employee, an office) and economic nexus (crossing $100,000 in sales).
For Amazon FBA and 3PL sellers the sneaky one is physical nexus: storing inventory in Washington creates it. Traditional physical presence nexus applies: office, employees, agents, inventory stored in Washington all create nexus. If that inventory has since left the state, your physical nexus may have already ended even though the registration is still open.
Trailing nexus in Washington
Nexus persists through the end of the calendar year following the calendar year in which the seller last met any applicable nexus standard. A seller who establishes nexus in Year 1 remains subject to Washington tax obligations through December 31 of Year 2, even if no nexus-creating activity occurs in Year 2. This rule applies to all taxes on Washington's combined excise tax return (sales tax and B&O tax).
Seller must complete final excise tax return and pay all outstanding taxes by the 25th of the following month before closing. Must retain records for five years. Corporations dissolving their Washington registration need a Revenue Clearance Certificate from the DOR before the Secretary of State will complete dissolution.
How to cancel your Washington sales tax permit
- Confirm both your physical and economic nexus in Washington have actually ended.
- Work through Washington's trailing-nexus window and keep filing (even $0 returns) until it closes.
- File any outstanding returns and the final return (700160), marking it final.
- Close the account via the online portal or form 700160.
- Keep your records; states can review a closed account for several years.
Where TrailingZero fits
TrailingZero connects to your store read-only, maps where you actually have nexus state by state, and computes the exact date you can deregister in Washington after trailing nexus. During any wind-down it can file the zero-dollar returns so nothing lapses — and you only pay for the states you genuinely keep. Run a free audit anytime; this page is free education either way.
Washington Can I cancel FAQ
- Can I get in trouble for canceling my Washington sales tax permit?
- Not if you do it in the right order. The risk comes from canceling before Washington's trailing-nexus window ends or skipping a final return. Seller must complete final excise tax return and pay all outstanding taxes by the 25th of the following month before closing. Must retain records for five years. Corporations dissolving their Washington registration need a Revenue Clearance Certificate from the DOR before the Secretary of State will complete dissolution.
- Do I have to keep filing in Washington after I stop selling there?
- Usually yes, for a while. Nexus persists through the end of the calendar year following the calendar year in which the seller last met any applicable nexus standard. A seller who establishes nexus in Year 1 remains subject to Washington tax obligations through December 31 of Year 2, even if no nexus-creating activity occurs in Year 2.
- What's the economic nexus threshold in Washington?
- Washington uses $100,000 in sales (current or preceding calendar year). Under it, with no physical presence, you generally don't have economic nexus.
- Is this tax advice?
- No. This page is general education built from public sources and the rules change often. Confirm your specific situation with the state's tax authority or your accountant before you register or deregister.
More on Washington sales tax
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Other states
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Primary sources reviewed for this page. Data current as of June 2026.
- https://dor.wa.gov/education/industry-guides/out-state-businesses-reporting-thresholds-and-nexus
- https://dor.wa.gov/manage-business/close-business/close-my-account
- https://dor.wa.gov/manage-business/close-business
- https://dor.wa.gov/file-pay-taxes/filing-frequencies-due-dates
- https://dor.wa.gov/file-pay-taxes/report-no-business-activity
- https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-facilitators
- https://dor.wa.gov/manage-business/state-endorsements/tax-registration
- https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
TrailingZerois software, not a CPA or law firm, and this page is general education — not tax or legal advice. State rules and thresholds change frequently; confirm your situation with the state's tax authority or your accountant before you register or deregister. See how we research and review this data in our editorial & accuracy policy.