Federal Timber Taxes


Forest Landowners Guide to the Federal Income Tax is a comprehensive manual about forest taxes. Unfortunately it has not been updated since 2000, but the basic principles are still valid.  USDA Agriculture Handbook 718. 171 p.

Web Sites

National Timber Tax Website was developed to be used by timberland owners, as well as a reference for accountants, attorneys, consulting foresters and other professionals who work with timberland owners regarding the tax treatment of timber related activities.  It contains numerous links to publications, webinars and other sources of tax information for forest land owners.


Presentations by Dr. Tamara Cushing are available for viewing.

Washington Timber Taxes

Forest Excise Tax must be paid on all timber harvested from private land in Washington. The Washington Department of Revenue's Forest Tax web page provides further information on the Forest Excise Tax.

Business and Occupation Tax (B&O) must be paid if the gross receipts from timber harvested exceed $100,000 in a calendar year.   A deduction for the first $100,000 is allowed under the Extracting B&O tax classification, under the "Other" deduction. Write Small Timber Harvester.  Amounts above $100,000 remain subject to B&O tax.