Washington State Retail Sales Increase 3.9% in Q3 2025

WA DOR News Releases

Published February 13th, 2026

Detected March 20th, 2026

Summary

The Washington State Department of Revenue reported that taxable retail sales increased by 3.9% to $63.4 billion in the third quarter of 2025 compared to the same period in 2024. This report details sales figures across various sectors and highlights performance in key counties and cities.

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What changed

The Washington State Department of Revenue has released its quarterly report indicating a 3.9% increase in taxable retail sales, reaching $63.4 billion in the third quarter of 2025 compared to the prior year. Key growth sectors included furniture, home furnishings, electronics, and appliances, while apparel and construction also saw increases. Conversely, sales in building materials and drug/health retailers experienced declines.

This notice serves as an informational update on economic activity within Washington State. While it does not impose new regulatory requirements or deadlines, businesses, particularly those in the retail and construction sectors, may find the data useful for market analysis and strategic planning. Compliance officers should note the specific sector performance data provided, which could inform risk assessments or business development strategies.

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Retail Sales Increase 3.9% In Third-quarter 2025

Retail sales increase 3.9% in third-quarter 2025

OLYMPIA, Wash. – Feb. 13, 2026 –– Taxable retail sales increased 3.9% across the state in third-quarter 2025, reaching $63.4 billion, thanks to sales of furniture, home furnishings, electronics, appliances, and construction.

Taxable retail sales are transactions subject to the retail sales tax, including sales by retailers, the construction industry, manufacturing, and other sectors.

Retail trade, a subset of all taxable retail sales in the state, rose 3.2% in the third quarter of 2025 over the same period in 2024 for a total of $25.3 billion. Retail trade includes sales of items such as clothing, furniture, and automobiles but excludes other industries, such as services and construction.

These figures are part of a quarterly report released today by the Washington State Department of Revenue. The taxable retail sales figures compare the same quarter year-to-year to equalize any seasonal effects that would influence consumer and business spending.

Here are some sectors that saw increases in taxable retail sales during third-quarter (July-September) 2025 compared to the same period in 2024:

Furniture, Home Furnishings, Electronics, and Appliance sales increased 9.0% to $2.5 billion.
New and Used Auto Dealers sales rose 1.1% to $4.3 billion.
Apparel and Accessories sales increased 5.7% to $1.5 billion.
Construction rose 1.9% to $13.1 billion.
Several industries saw decreases in sales during third-quarter 2025, including:
Building materials, garden equipment and supplies sales dropped -1.9% to $2.4 billion.
Drug and health retailers’ sales decreased -5.4% to $725 million.
See third-quarter 2025 taxable retail sales and retail trade sales by industry (PDF).

Find out more information about taxable retail sales in cities and counties (PDF).

Some highlights of 10 counties and cities in the state:

| County | Taxable retail sales | Percent change | Retail trade | Percent change |
| --- | --- | --- | --- | --- |
| King | $23.6 billion | 4.3 | $8.0 billion | 3.1 |
| Pierce | $6.6 billion | 4.6 | $3.0 billion | 3.4 |
| Snohomish | $5.9 billion | 2.7 | $2.8 billion | 2.1 |
| Spokane | $4.0 billion | 0.8 | $1.9 billion | 2.3 |
| Clark | $3.2 billion | 1.1 | $1.3 billion | 2.2 |
| Thurston | $2.1 billion | 2.9 | $986 million | 1.2 |
| Kitsap | $1.9 billion | 4.8 | $879 million | 4.6 |
| Benton | $1.7 billion | 9.1 | $775 million | 4.4 |
| Whatcom | $1.7 billion | 0.2 | $719 million | -2.3 |
| Yakima | $1.5 billion | 4.8 | $699 million | 2.1 |

| City | Taxable retail sales | Percent change | Retail trade | Percent change |
| --- | --- | --- | --- | --- |
| Seattle | $9.2 billion | 4.3 | $2.5 billion | 1.2 |
| Bellevue | $2.6 billion | 2.8 | $1.0 billion | 5.9 |
| Tacoma | $1.9 billion | 2.6 | $841 million | 3.4 |
| Spokane City | $1.8 billion | -1.0 | $783 million | 2.5 |
| Vancouver | $1.6 billion | -1.8 | $710 million | -0.2 |
| Everett | $1.1 billion | -2.5 | $448 million | 2.0 |
| Bellingham | $1.0 billion | -0.3 | $492 million | -3.2 |
| Lynnwood | $876 million | 0.5 | $563 million | -3.0 |
| Puyallup | $822 million | 7.9 | $467 million | 2.3 |
| Kennewick | $795 million | 7.7 | $431 million | 1.9 |

Compare taxable retail sales numbers for third quarter 2025 and previous years by checking out the “Retail sales for cities and counties” page on our website.

Check Revenue’s Statistics and Reports page for additional detail about taxable retail sales.

Understanding how businesses are classified

Revenue uses business tax return data to create this quarterly report. Businesses are categorized under the U.S. Census Bureau’s classification system based on their primary taxable activity. The North American Industry Classification System – or NAICS – is the same method federal statistical agencies use for the purpose of analyzing economic data.

The Department of Revenue is Washington state’s primary tax agency, nationally recognized as a trusted leader in tax administration and customer service. Revenue administers nearly 60 categories of taxes that help fund vital public services. It also oversees programs that return money to the public, including the Working Families Tax Credit and Unclaimed Property.