Starting July 1, 2026, an additional tax of 0.5% applies to each retail sale of a recreational vessel in Washington State. The tax is due at the time of purchase or at the time of first use in Washington. Visit the Department of Revenue New Recreational Vessel Tax page for more information.
This new tax is the result of legislation adopted in 2025 after lawmakers sought additional revenue for the state’s transportation budget. However, it also represents a significant advocacy victory for us as lawmakers had instead proposed a 10% luxury tax on new and used recreational vessels valued at more than $500,000 with Senate Bill 5801. Had it passed, the tax would have had extremely serious consequences across our entire industry.
Working alongside our partners at RBAW and NYBA, we successfully defeated the luxury tax. However, we did not emerge without some additional tax burden in the form of this new 0.5% tax because the legislature believes all Washingtonians should contribute to providing the funds needed to balance the state transportation budget.
