Quick Summary (Answer Block):
As of early 2026, short-term rental (STR) operators in Seattle must collect and remit multiple taxes from guests, including Washington’s sales tax (6.5%) and additional local lodging taxes such as the Seattle Lodging Tax (10.1%) and the King County Convention and Trade Center Tax (7%). STR income is also subject to Washington’s Business & Occupation (B&O) tax on gross receipts. Platforms like Airbnb and Vrbo often collect and remit many of these taxes automatically, but hosts are still responsible for registration, reporting, filing returns, and full compliance. These tax rates and rules are current at the time of writing (January 2026) but may change with new legislation or local policy updates.
What Taxes Apply to a Seattle Short-Term Rental?
At the time of this writing, operating a short-term rental (any rental under 30 days) in Seattle involves several overlapping tax obligations, both at the state and local level.
1. Washington State Sales Tax – 6.5%
Washington imposes a state sales tax on lodging (including short-term rentals). This is a base rate that applies to rental charges.
2. Seattle Lodging Tax – 10.1%
The City of Seattle levies its own lodging tax on short-term rentals. This is separate from sales tax and applies to the same rental charges.
3. King County Convention and Trade Center Tax – 7%
Short-term rentals in Seattle are also subject to this county-level tax that funds the convention center. This 7% tax is critical for properties within Seattle city limits but may differ for our managed properties in Snoqualmie Pass or Whidbey Island.
4. Washington Business & Occupation (B&O) Tax – 0.471%
This is a gross receipts tax on rental income. Washington’s B&O tax applies to STR revenue under the retailing classification, although hosts with less than $90,000 in gross income may qualify for a small business tax credit.
5. Combined Guest Tax Burden (Approximate):
If you add the state sales tax, Seattle lodging tax, and convention center tax, the total tax burden guests pay on rental income is roughly 23.6% (before any small business B&O credit or platform collections).
What Happens When a Guest Books Through a Platform?
Platforms like Airbnb and Vrbo often collect many of these taxes (state and local) at the time of booking and remit them directly to the appropriate authorities. This includes:
- Washington sales tax
- Seattle lodging tax
- Convention and trade center tax (if applicable)
However:
- You must register with the Washington Department of Revenue and local agencies.
- You’re still responsible for proper reporting and filing, even if the platform collects taxes on your behalf.
- Not all platforms handle every tax for every jurisdiction, and direct bookings bypass platform collections.
What It Takes to Self-Manage Seattle STR Taxes
If you choose to handle taxes yourself rather than work with a professional manager, here’s what that process involves.
1. Register With Tax Authorities
You must register with:
- Washington State Department of Revenue (for sales tax, lodging tax, and B&O tax)
- City of Seattle Finance (for local lodging tax and any required reports)
- Obtain or maintain a Seattle business license tax certificate and a short-term rental operator license (required locally)
Each registration has separate steps, portals, and account credentials.
2. Charge and Collect the Right Taxes
You must calculate and collect the applicable taxes from every guest:
- Confirm which taxes apply at your property’s specific address (Seattle’s tax code depends on precise location).
- Build tax amounts into your pricing or display them as separate line items.
- Keep detailed records of guest charges and taxes collected.
Booking platforms may handle some of this, but you still need to reconcile their reports with your own records.
3. File Returns on the Right Schedules
- Sales tax, lodging tax, and other remittances may have different filing frequencies (monthly, quarterly, or annual) based on your volume and revenue.
- B&O tax returns must be filed according to assigned schedules.
Missing deadlines can trigger penalties and interest.
4. Maintain Organized Records
Washington and Seattle tax authorities can audit your compliance. You should retain:
- Booking records
- Gross income reports
- Tax collection computations
- Filing confirmations and receipts
Accurate, audit-ready files are essential.
5. Stay Current With Regulatory Changes
Local and state tax rules evolve. As of 2026, new proposals and temporary rates are occasionally discussed (for example, special levy ideas tied to major events or housing funds). Staying vigilant is part of compliance.
DIY: Time, Risk, and Opportunity Cost
Managing STR taxes yourself costs more than just dollars:
Time Investment
- Setup and initial registration: several hours
- Ongoing monthly or quarterly filing work: regular commitment
- Researching regulatory changes: continuous
Compliance Risk
- Penalties and interest for late or incorrect filings
- Audit exposure if records aren’t thorough
Opportunity Cost
Every hour you spend on compliance is time not spent on:
- Guest communication
- Revenue management
- Marketing and pricing optimization
- Personal life priorities
What Professional Management Handles for You
When you work with a reputable vacation rental management company, they typically take these duties off your plate:
- Complete tax registration with all required agencies
- Accurate tax calculation on every booking
- Collection and remittance to all authorities (state and local)
- Filing required returns on schedule
- Organized record-keeping ready for audits
- Monitoring regulatory changes and compliance obligations
This leaves you focused on ownership goals without the administrative complexity.
Bottom Line: Do It Yourself or Delegate
Self-managing Seattle’s STR taxes is possible, but it requires consistent attention, accurate record-keeping, and familiarity with multiple agencies and filing requirements. For many owners, the time and stress involved make professional management a more efficient and less risky choice.
If you want clarity on how tax compliance fits into your broader rental performance and ownership goals, we can walk through your specific situation and help you decide. It’s not just about compliance; it’s about how you spend your time and grow your investment.
Have a question about Seattle STR taxes or compliance?
Reach out and we’ll clarify what applies to your property and next steps.
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