Exemption
Insurance premiums
B&O Tax exemption · RCW 82.04.320 · enacted 1935
Note added Oct 13, 2026
Changed by EHB 2487 (ch. 263, Laws of 2026), effective June 11, 2026: RCW 82.04.320 was rewritten and applies retroactively to October 2, 2019; RCW 82.04.322 was repealed. DOR's penalty and interest relief program requires an application 'on or before December 31, 2026.'
Details
- Citation
- RCW 82.04.320
- Study reference
- E1052-1
- Tax type
- B&O Tax
- Preference type
- Exemption
- Category
- Tax Base
- Year enacted
- 1935
- End date
- 2032-01-01 00:00:00
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 920.3 · FY 2026: 1023.4 · FY 2027: 1043.3
- Taxpayer savings — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — state ($M)
- FY 2024: 983.7 · FY 2025: 1003.9 · FY 2026: 1023.4 · FY 2027: 1043.3
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.320 - Insurance premiums Description Income subject to the state insurance premiums tax is exempt from B&O tax. Purpose To avoid subjecting insurance premiums to more than one state business tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $983.700 $1,003.900 $1,023.400 $1,043.300 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues if RCW 48.14.080 is also exemption amended to allow B&O taxation of premium income. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $920.300 $1,023.400 $1,043.300 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the insurance premiums growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Premiums can be subject to both insurance and B&O taxes. - This activity is taxed at the 1.75% service and other activities B&O tax rate. Data Sources - Office of the Insurance Commissioner, Insurance data Additional Additional Information Information Category: Tax b
Does this apply to you?
This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: