Mercer Island, Washington Sales Tax 2026 Guide: Rates & Filing Tips

Mercer Island Sales Tax Guide 2026 (Washington)

Mercer Island, Washington Sales Tax Information

Mercer Island is a city in Washington with a combined sales tax rate of 10.1%. The breakdown of the sales tax is as follows: State Tax: 6.5%, County Tax: 0.0%, and Special Tax: 3.6%.

Other cities in Washington have varying sales tax rates. The city of Kent has rates ranging from 10.1% to 10.2%, Kirkland has a rate of 10.2%, Lynnwood has a rate of 10.6%, Maple Valley has a rate of 8.8%, Medina has a rate of 10.1%, Bothell has a rate of 10.1%, Mountlake Terrace has a rate of 10.5%, North Bend has a rate of 9.0%, Pacific has a rate of 10.2%, and Preston has a rate of 8.7%. Among these cities, Lynnwood has the highest sales tax rate of 10.6%, while Preston has the lowest rate at 8.7%.

Mercer Island is tax-exempt for general physical products. The zip code for Mercer Island, Washington is 98040.

Mercer Island

1. Mercer Island sales tax rates

2. Mercer Island Sales Tax Calculator & Lookup Tool

3. Points to Remember

4. Mercer Island sales tax guide

Navigating sales tax compliance in Mercer Island, Texas can be a challenge for businesses of all sizes. Understanding the local regulations, tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses, helping you focus on growth without the headache of managing complex tax rules.
In this guide, we'll break down everything you need to know about sales tax in Mercer Island for 2026.

What Is the Sales Tax Rate in Mercer Island?

The sales tax rate in Mercer Island, Texas, as of February 2026, is composed of:

Jurisdiction	Sales tax rate
State Tax	6.50%
County Tax	0.00%
City Tax	3.60%
Special Tax	0.00%
Combined Tax	10.10%

(Note: Sales tax rates are subject to change. Check the website for the latest updates.)

View details for sales tax in the state of Texas

Who Needs to Collect Sales Tax in Mercer Island?

Sales tax collection in Mercer Island is required for businesses that meet the following criteria:

Physical Presence: Businesses with a store, office, warehouse, or employee in Mercer Island.
Economic Nexus: Out-of-state businesses exceeding $250,000 + Special Activities in Texas.

Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.

What Is Taxable in Mercer Island?

In Mercer Island, Texas, sales tax applies to:

Tangible personal property (e.g., electronics, clothing, furniture).
Certain services.

There are also exemptions for items like Raw Materials, General Occasional Sales, Motor Vehicles Occasional Sales, General Optional Maintenance Contracts. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.

How to File Sales Tax in Mercer Island

Here’s a step-by-step guide for filing your sales tax returns:

Register Your Business: Get a sales tax permit through the state revenue website.
Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
File and Pay: Submit sales tax returns through the state website by the state-specific deadline—monthly, quarterly, or annually depending on your sales volume.

Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.

Common Challenges in Sales Tax Compliance

Tracking tax rate changes for city, county, and special districts.
Managing exemptions and resale certificates.
Reconciling returns for accurate filing.

Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.

Why Choose Kintsugi for Sales Tax Compliance?

Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
Nexus Tracking to identify where you need to register and collect tax.
Automated Filing to save time and reduce errors.
Audit Support to give you peace of mind.

A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.

Ready to Simplify Sales Tax Compliance in Mercer Island?

With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.

Ready to automate your sales tax?

Find Sales Tax Information for Other Cities in Texas

Looking for sales tax rates and compliance details for other cities in Texas? Check out our comprehensive table of sales tax information for cities across the state in the table below.