If you rent rooms, cabins, campsites, or a whole house to short-term guests in Washington, you have to register with the Department of Revenue and collect Washington lodging tax on every stay under 30 days. That tax is not a single line item. It is a stack: the 6.5% state retail sales tax, local sales tax, a basic lodging tax of up to 2%, a special lodging tax of up to 2%, a convention center tax in King County, and, at larger properties, a per-night tourism promotion charge. The combined rate runs from the low teens in most of the state to 15.2% in Seattle.
What Taxes Apply to a Lodging Stay
Every short-term stay starts with the 6.5% state retail sales tax, which applies to all retail sales including accommodations.1Washington State Legislature. Washington Code 82.08.020 – Tax Imposed—Retail Sales—Retail Car Rental Local sales tax sits on top of that and varies by city and county.
Then come the lodging-specific taxes. Counties and cities may impose a basic lodging tax of up to 2% under RCW 67.28.180. This one is credited against the state sales tax, so the guest’s total does not go up; it simply redirects revenue to local tourism purposes. On top of that, a municipality can add a special lodging tax of up to 2% under RCW 67.28.181, and this one is a real additional charge to the guest. Combined lodging-related taxes are capped at 12% in most jurisdictions, with Seattle allowed up to 15.2%.2Washington State Legislature. Washington Code 67.28.181 – Special Excise Tax on Lodging
In King County, a convention and trade center tax also applies. Inside Seattle the rate is 7% plus a 2% surcharge; in the rest of King County it is 2.8%.3Washington Department of Revenue. Convention and Trade Center Tax If your property is outside King County, this tax does not apply to you.
Some jurisdictions have established Tourism Promotion Areas under RCW 35.101 and charge a per-night fee to fund local marketing. Only lodging businesses with 40 or more units are required to collect it.4Washington Department of Revenue. Lodging Tax Classification Definitions
Find the Exact Rate for Your Address
Because each jurisdiction picks which levies to adopt, two properties a few miles apart can land at different totals. Use the Department of Revenue’s sales and use tax rate lookup, which takes a street address, city, and ZIP and returns the combined rate along with a separate line for lodging-specific taxes.5Washington Department of Revenue. Sales and Use Tax Rate Lookup Rates shift when a local jurisdiction changes a levy, so check the tool rather than working from memory.
Which Rentals Are Covered
The obligation attaches to any business providing accommodations to a guest for less than one month, or less than 30 consecutive days when the rental period does not start on the first of the month. The Department of Revenue’s list of covered property types is broad:6Washington Department of Revenue. Lodging – Transient (Short-Term)
- Hotels, motels, and resorts
- Bed and breakfast houses
- Personal home and room rentals (the Airbnb and VRBO category)
- Condominiums and timeshares
- Cabins and camping sites
- Recreational vehicle parks
- Rooming and boarding houses
- Summer camps
Format does not matter. A tent platform on rural property, a converted garage apartment, and a downtown hotel suite all carry the same collection duty when rented short-term.
When Lodging Tax Does Not Apply
Stays of 30 Days or More
Once a guest’s stay reaches 30 continuous days, or the rental period is one month or more, the guest becomes nontransient and lodging taxes stop applying. The switch to nontransient status happens on the 30th day even if the guest moves rooms during that period. If a guest signs a contract in advance for 30 or more days and then actually stays continuously from day one, they are treated as nontransient from the start, meaning no lodging tax is collected on that stay at all.7Washington Department of Revenue. Lodging – Nontransient (Long-Term)
The continuity has to be real. A guest who checks out for one night and checks back in resets the clock. When a guest books without a 30-day commitment but ends up staying that long, the shift happens on day 30, and tax collected for the earlier days should be adjusted.
Diplomatic Cardholders
Certain foreign diplomatic officials are exempt from retail sales tax, and that exemption extends to lodging taxes. The guest must present a valid diplomatic tax exemption card at the time of purchase. Without the card, the exemption does not apply, and you cannot go back and grant it later based on a claim of diplomatic status.8Washington Department of Revenue. Lodging Guide
If You Rent Through Airbnb, VRBO, or a Similar Platform
When a residential dwelling (a home, apartment, or cabin) is rented through a platform, Washington treats the platform as a marketplace facilitator, and the platform collects and remits all applicable taxes, including lodging taxes, on your behalf.9Legal Information Institute (LII). Wash. Admin. Code 458-20-282 – Marketplace Tax Collection and Reporting Bookings a platform facilitates at commercial hotels and similar traditional lodging fall outside that rule; those hotels remain responsible for their own tax collection.10Washington Department of Revenue. Marketplace Facilitators
Platform collection does not relieve you of the need to register. You still need a Washington state business license and a UBI number. And you should hold documentation from the platform confirming it is registered with the Department of Revenue and will collect all applicable taxes. Without that, you could be held liable for anything the platform failed to collect.9Legal Information Institute (LII). Wash. Admin. Code 458-20-282 – Marketplace Tax Collection and Reporting
Registering the Business
Before you collect any tax, apply for a Washington state business license. The application assigns you a Unified Business Identifier, a nine-digit number that tracks your business across state agencies.11Washington Department of Revenue. Business Licensing and Renewals FAQs Apply online through the Department of Revenue’s Business Licensing Wizard. Online applications take about 10 business days, and city or state endorsements can add another two to three weeks.12Washington Department of Revenue. Apply for a Business License The account you set up for the application becomes your My DOR login for filing returns and making payments.
Have this ready before you start:
- The physical address of each property where lodging is offered
- Ownership details, including names and Social Security numbers for sole proprietors, partners, corporate officers, or LLC members
- Bank routing and account numbers for electronic tax payments
Incomplete ownership information is one of the most common causes of processing delays.13Washington Department of Revenue. Business License Application
Filing and Paying
You file through the My DOR portal. The department assigns your filing frequency (monthly, quarterly, or annually) based on your estimated liability.14Washington Department of Revenue. My DOR Help Enter your gross income and the system calculates the amounts owed under each classification. Review the totals and authorize an electronic payment.
File every period, even one with no revenue. A skipped zero return creates a gap that can trigger penalties and put your license at risk. Late payment penalties escalate on a set schedule under RCW 82.32.090: 9% of the tax owed if you miss the due date, 19% if it is still unpaid at the end of the following month, and 29% if unpaid at the end of the second month after the due date, with a $5 minimum.15Washington State Legislature. Washington Code RCW 82.32.090 – Penalties
Fixing a Return
If you find an error, amend the return through My DOR or on paper. For a single period, log in and correct the figures. For multiple periods, submit a schedule showing the corrected amounts, the periods affected, and an explanation of each adjustment, either through the “Send a Message” feature in My DOR or by mail.16Washington Department of Revenue. Amend My Return
Refund requests reach back only four years from the year the request is made. If you originally filed reporting no activity and later realize you had revenue, amend that original return rather than rolling the income into a later period.16Washington Department of Revenue. Amend My Return
Records to Keep
Washington requires lodging businesses to keep financial records for at least five years, and the Department of Revenue can request to inspect them with reasonable notice. If records are missing for a period, you lose the ability to challenge an assessment for that period; the department’s calculation stands.17Washington State Legislature. WAC 458-20-254 – Recordkeeping
In practice, hold on to booking confirmations, payment records, guest registration logs, platform payout statements, and any documentation supporting an exemption you applied. The five years runs from the return’s due date, not the transaction date, so busy-season records may need to survive longer than you would expect.
Buying an Existing Lodging Business
Buy more than half of a lodging business’s assets and you can inherit the seller’s unpaid tax debts. Under RCW 82.32.140, outstanding taxes become immediately due when a business is sold, and the seller has 10 days to file a final return and pay.18Washington State Legislature. Washington Code 82.32.140 – Taxpayer Quitting Business
As the buyer, you are required to withhold enough from the purchase price to cover any unpaid taxes until the seller produces a receipt from the Department of Revenue showing the balance is paid, or a certificate stating no tax is due. If the seller does not pay within 10 days, you become personally liable for the full amount. Written notice of the acquisition to the Department of Revenue caps that exposure: if the department does not issue an assessment against the former owner within six months of receiving your notice, your liability ends.18Washington State Legislature. Washington Code 82.32.140 – Taxpayer Quitting Business The department also offers a Successorship Notice form, and you can request a Tax Status letter from the seller to identify outstanding liabilities before closing.19Washington Department of Revenue. Buying the Assets of a Business