Tacoma Approves New 0.1% Public Safety Sales Tax: What Clients Should Know

Tacoma Approves New 0.1% Public Safety Sales Tax: What Clients Should Know

The City of Tacoma City Council has approved a new 0.1% Public Safety Sales & Use Tax, sometimes referred to as the Criminal Justice Sales Tax, marking a notable change for businesses and consumers operating within Tacoma city limits.

The tax was formally adopted on January 6, 2026, and is designed to provide dedicated, restricted funding for public safety services at a time when many local governments are facing budget pressure.

Why Tacoma Adopted This Tax

Tacoma officials have been clear about the intent behind the measure. The additional revenue is aimed at preventing reductions to essential public safety services while modernizing systems that residents and businesses rely on daily. In particular, the funding is intended to support:

• 911 emergency response operations, including staffing and technology upgrades

• Public safety and criminal justice programs

• Behavioral health and crisis-response services, which increasingly intersect with law enforcement and emergency calls

Importantly, the revenue generated by this tax cannot be diverted to general spending. State law restricts its use exclusively to public safety purposes.

What Is Changing at the Register

Once implemented, the new tax will raise Tacoma’s combined sales tax rate:

• Current rate: 10.3%

• New rate: 10.4%

While a 0.1% increase may seem modest, it applies broadly to taxable retail transactions within city limits and is expected to generate approximately $7 to $7.5 million per year in new revenue for Tacoma.

For businesses, this means:

• Updating point-of-sale systems to reflect the new rate

• Ensuring correct sales-tax collection beginning on the effective date

• Reconciling Tacoma sales separately where required for reporting

When the Tax Takes Effect

Although approved in early January, the tax will not take effect immediately. Due to state-level scheduling rules, the implementation is expected on:

📅 April 1, 2026

This delayed start provides businesses with a short window to prepare system updates, pricing disclosures, and internal accounting processes.

State Authorization Behind the Change

Tacoma’s action was enabled by recent state legislation, HB 2015, which authorized local governments to adopt this targeted public safety tax. Without this authorization, cities would not have had the authority to impose the additional 0.1%.

What Happens Next

The City has published official guidance and frequently asked questions confirming the approval and outlining compliance expectations. From a practical standpoint, businesses should now focus on:

• Confirming whether transactions are subject to Tacoma city sales tax

• Coordinating with POS providers and accountants before April 1

• Monitoring future local tax proposals, as public safety funding remains a statewide issue

Our Perspective for Clients

Local sales-tax changes, even small ones, have ripple effects across pricing, compliance, and reporting. For businesses operating in multiple jurisdictions, these incremental increases can add complexity if not handled proactively.

If you have questions about:

• How this change affects your specific business

• Sales-tax setup and reconciliation

• Multi-location or multi-jurisdiction compliance

Our team is happy to help you stay ahead of the change and avoid surprises once the new rate goes live.