Seattle STR transient lodging tax: a practical guide for operators

Washington state imposes a Transient Accommodations Tax on short-term rental income—any rental of accommodations for a period of fewer than 30 days. Seattle and King County add local lodging taxes on top of the state rate. For most Seattle STR operators, Airbnb collects and remits these taxes on your behalf—but that does not mean you have no compliance obligations. The platform handles remittance; you remain responsible for accurate record-keeping, understanding what is and is not covered, and managing your obligations on stays that fall outside platform-collected transactions.

Key Takeaways

• Washington's Transient Accommodations Tax (administered by the Washington State Department of Revenue) applies to stays under 30 days at a combined state + local rate that varies by location.
• In Seattle/King County, the combined lodging tax rate (state + local) can reach approximately 15–16% of gross revenue, depending on the specific tax levies in effect.
• Airbnb remits Washington lodging taxes on behalf of hosts for bookings processed through the platform—but operators must verify their platform's specific tax agreements with Washington state and local jurisdictions.
• Stays of 30 consecutive days or more are exempt from Washington's transient accommodations tax.
• Self-managed operators who collect payment outside platforms (direct wire, cash) must register with the Washington DOR and remit taxes directly.

Last reviewed: May 2026. Tax rules change. Consult a Washington state CPA or tax attorney before relying on any specific rate or treatment described here. Verify current rates directly with the Washington DOR at dor.wa.gov.

Washington's transient accommodations tax: the structure

Washington state's Department of Revenue administers the Transient Accommodations Tax under RCW 82.08.010 (retail sales tax applied to short-term lodging). The tax applies to the gross rental amount for accommodations rented for periods of fewer than 30 consecutive days.

The tax structure in Seattle has multiple layers:

The cumulative effective tax rate on a Seattle STR booking processed through Airbnb is approximately 15–16% of gross revenue for most city-area properties. Verify the current combined rate directly with the Washington DOR, as rates are adjusted by the legislature and local governments.

What Airbnb collects and remits

Airbnb has a Voluntary Collection Agreement (VCA) with Washington state and has also reached agreements with specific Washington jurisdictions including Seattle and King County. Under these agreements, Airbnb:

• Collects Washington state retail sales tax, applicable state lodging surcharges, King County lodging taxes, and Seattle Hotel/Motel Tax from guests at the time of booking
• Remits these amounts directly to the relevant taxing authorities
• Reports the remittances under Airbnb's own tax account with the DOR—not under your individual tax account

What this means for you as a host:

The lodging taxes that appear on an Airbnb booking confirmation as "taxes and fees" are generally being handled by the platform. You do not normally need to separately remit these amounts for platform-processed bookings. However:

1. You should verify that Airbnb's VCA covers all lodging taxes applicable to your specific location (city, county, and state). Log in to Airbnb's host dashboard and review the Tax Collection section for your listing's jurisdiction.
2. You remain responsible for your income tax obligations on STR income (federal and state income tax are separate from transient lodging tax—see our STR tax guide for the income tax side).
3. If you accept any bookings outside the Airbnb/VRBO platform—direct wire transfers, cash, Venmo, or any other payment method—you are responsible for collecting and remitting lodging taxes on those transactions yourself.

VRBO, Furnished Finder, and other platforms

Airbnb is the most comprehensive platform for Washington lodging tax remittance. Other platforms have varying agreements:

VRBO (Vrbo/HomeAway/Expedia Group): VRBO has lodging tax remittance agreements with Washington state and many local jurisdictions. Verify coverage for your specific listing on VRBO's tax compliance resource page or contact their owner support line.

Furnished Finder: Furnished Finder is primarily a marketplace connector—it typically does not collect or remit lodging taxes on behalf of hosts. For stays booked through Furnished Finder that are under 30 days, the operator is responsible for lodging tax collection and remittance.

Direct bookings: No platform remittance. You collect the full amount from the guest and remit lodging taxes to the Washington DOR and relevant local authorities through the DOR's business tax portal.

When you must register directly with the Washington DOR

You need to register with the Washington Department of Revenue and obtain a business license if:

• You receive any STR income outside of platforms that collect and remit lodging taxes on your behalf
• Your total gross receipts from business activities in Washington (including STR income) exceed certain thresholds
• You plan to operate STR as a business entity (LLC, S-corp, etc.)

Registration is done through Washington's Business Licensing Service. Once registered, you file and pay applicable taxes through the DOR's online portal on a reporting schedule determined by your revenue level.

Maya, a Seattle property owner who managed two Capitol Hill units entirely through direct corporate bookings she found via LinkedIn, went two years without registering with the DOR because she assumed her accountant had handled it. When a Washington DOR audit identified the oversight, she owed back-taxes, interest, and penalties on approximately $180,000 in gross STR income over the two years. The tax liability itself was not the company-ending amount she feared—the combined rate on her gross booking revenue—but the interest and penalties nearly doubled the bill. Proper registration and regular filings would have cost her approximately $40 in annual fees and a quarterly 30-minute filing process.

The 30-day exemption: how MTR changes your tax picture

Stays of 30 or more consecutive days in Washington state are not subject to the transient accommodations tax. This is a statutory exemption, not a gray area. The implication for property operators:

• A 30-day minimum stay removes the lodging tax compliance burden from that booking entirely
• Your gross income from MTR stays is not subject to the platform-collected lodging tax (no 15–16% withholding on the booking)
• MTR income is still subject to federal and state income taxes—the lodging tax exemption does not affect your income tax obligations

For properties operating a blended STR/MTR strategy, your bookkeeping must clearly distinguish between sub-30-day stays (subject to lodging tax) and 30-day or longer stays (exempt). This distinction matters for both lodging tax filings and income tax categorization.

Bookkeeping practices every Seattle STR operator should maintain

Regardless of whether you use Airbnb, VRBO, or direct booking, maintain these records:

Per booking:

• Booking confirmation or agreement (platform generated or custom contract)
• Check-in and check-out dates (number of consecutive nights is the key lodging tax determination)
• Gross rental amount (pre-platform-fee amount paid by guest)
• Platform fees withheld (Airbnb takes a host fee)
• Cleaning fee (separately stated—lodging tax application to cleaning fees varies by jurisdiction; verify with your CPA)
• Tax collected/remitted by platform (available in host payment statements)

Annual:

• Total gross booking revenue by property
• Total platform-remitted lodging taxes
• Any direct-booking revenue not covered by platform remittance
• Expenses (management fees, cleaning, supplies, mortgage interest, depreciation—relevant for income tax filing)
• IRS Form 1099-K from platforms (Airbnb and VRBO issue these when revenue exceeds threshold amounts)

Software options: QuickBooks, Wave Accounting, and STR-specific tools like Hostaway or Guesty all offer bookkeeping features. URPM provides monthly owner statements that detail gross bookings, management fees, cleaning costs, and net disbursements—which gives you the per-property income figures you need for your CPA at tax time.

FAQ

Q: Does Airbnb's tax remittance mean I don't owe anything to the state? For lodging taxes covered by Airbnb's VCA with Washington, the platform remits on your behalf. But you still have federal and state income tax obligations on the net income. Lodging tax remittance and income tax are separate.

Q: What is the exact combined lodging tax rate in Seattle right now? The exact rate depends on the specific levies in effect at time of booking. Current rates are posted by the Washington DOR at dor.wa.gov/taxes-rates/lodging-taxes. As of early 2026, combined rates for Seattle-area STR were approximately 15–16%, but verify directly.

Q: If I operate my STR as an LLC, does that change my lodging tax obligations? The LLC does not change the transient lodging tax structure—lodging taxes are based on the transaction (the rental of accommodations), not the entity type. However, business entity structure affects income tax treatment and liability protection. Consult a CPA for entity-specific guidance.

Q: My cleaning fee is separate from my nightly rate—is it taxed? This is a nuanced area. In Washington, mandatory cleaning fees that are not separately optional are generally considered part of the sales price and subject to retail sales tax. However, application to lodging tax can vary. Discuss with your CPA and verify with the WA DOR.

Q: How does URPM handle tax documentation for managed properties? URPM provides monthly statements to property owners detailing gross bookings, our 15% management fee, cleaning and maintenance costs, and net disbursement. We also document all platform-remitted taxes per booking. This makes your annual income tax preparation straightforward. See our full service scope.