Washington Lodging Tax and DOH Lodging License: $230, $458 and $922 by Unit Count
Washington Lodging Tax and DOH Lodging License: $230, $458 and $922 by Unit Count
If you rent rooms, cabins, or apartments to guests for fewer than 30 days in Washington, you have three obligations to sort out: a Department of Health (DOH) transient accommodation license, state and local sales tax with business and occupation (B&O) tax, and possibly a local lodging tax. The DOH license fee depends on how many units you operate. The local lodging tax depends on where the property sits. This guide covers the numbers, the deadlines, and how to check each one for your property.
This guide is informational only. It is not legal or tax advice. Confirm current requirements with the agency named in each section, and consult a qualified attorney or CPA before making decisions about entity structure, tax treatment, or a complex short-term rental operation.
Who Needs a DOH Transient Accommodation License
Under RCW 70.62, you need a DOH transient accommodation license if you rent three or more lodging units to guests for stays of under 30 days. Two-unit operations fall below the license threshold, but that does not exempt them from tax. A rental of under 30 days is still subject to retail sales tax and retailing B&O tax, whether you have one unit or fifty.
Because the fee tier depends on your unit count, count carefully before you apply. Confirm with DOH how your property's units are counted, especially if several units share a building, a kitchen, or a single entrance. A miscount can put you in the wrong fee tier or leave you out of the licensing requirement altogether.
Apply at least 60 days before you plan to open. DOH requires the application 60 or more days before opening, so a rushed timeline can delay your first booking.
The Three Annual Fee Tiers
As of December 1, 2025, the annual DOH license fee depends on the number of units you operate (WAC 246-360-990):
| Units operated | Annual license fee (as of December 1, 2025) |
|---|---|
| 3 to 10 units | $230 |
| 11 to 49 units | $458 |
| 50 or more units | $922 |
Fee schedules can change, so confirm the current amount on DOH's licensing pages before you submit payment. Budget for the license as a recurring operating cost, not a one-time startup expense.
Late Renewal and Amended Fees
Missing your renewal date costs more than the license itself. Plan around these charges:
- Late renewal within 35 days of expiration: $77
- Late renewal after 35 days of expiration: $300
- Amended license when you add units: $232
The amended fee applies when you expand a licensed property. The $232 amended fee includes two hours of DOH review, and additional review time is billed at $116 per hour. Confirm the total with DOH, including whether a higher unit count changes your annual fee tier, before you add units to a listing.
Sales Tax and B&O on Rentals Under 30 Days
Rentals of under 30 days are subject to Washington retail sales tax and retailing B&O tax. The state sales tax rate is 6.5 percent, and local sales tax rates are added by location. Washington has no personal income tax on wages and no corporate income tax. Its main business tax is the gross receipts B&O tax, which applies to gross income with no deduction for labor, materials, or other costs.
Marketplaces such as Airbnb collect and remit tax for hosts on covered rentals. That does not mean the platform handles everything. Review what the platform collects for your listing, confirm it in your Department of Revenue (DOR) account, and reconcile it against your own bookings, including direct bookings you take outside the platform. Those direct bookings remain your responsibility.
The Department of Revenue explains these rules in its lodging guide and related pages at dor.wa.gov.
Local Lodging Tax: Rates Differ by Address
Washington has 39 counties and 281 incorporated places (cities and towns). Cities and counties may levy their own lodging taxes under RCW 67.28.180 and RCW 67.28.181. Each local tax can be up to 2 percent, within an overall cap set in state law. Because each jurisdiction chooses whether to levy the tax and at what rate, two properties a few miles apart can owe different local lodging tax rates.
Do not estimate your rate from a neighboring city or from an online average. Look up your exact address in the DOR lodging rate file, which is available through the Department of Revenue website at dor.wa.gov. If the address sits near a city boundary or in an unincorporated area, verify the jurisdiction before you set your nightly rates or your tax collection settings.
Once you know your combined rate, build it into your booking system so every reservation is taxed consistently. Ask your CPA to confirm how the state sales tax, local sales tax, B&O tax, and any local lodging tax stack for your situation.
The Short-Term Rental Tax Bill That Did Not Pass
House Bill 2559 would have allowed a local short-term rental tax of up to 4 percent. It did not become law in 2026. Do not build your pricing or your budget around that tax. Check the Washington State Legislature's bill page at leg.wa.gov before relying on any new short-term rental tax, since a future bill could change local options and the rules that apply to your property.
Business License, Endorsements, and the UBI
Washington's general business license runs through the Business Licensing Service (BLS) inside the Department of Revenue. The BLS issues your 9-digit Unified Business Identifier (UBI) and handles state and city endorsements in one application. You need this application if your lodging business:
- operates under a name other than your full legal name,
- sells anything subject to sales tax (which includes rentals under 30 days),
- has gross income of $12,000 or more per year,
- plans to hire employees within 90 days, or
- owes any tax or fee to the Department of Revenue.
The BLS processing fee is $50 to open a business, plus separate endorsement fees. Online applications generally take about 10 business days. If city or state endorsements need approval, add 2 to 3 weeks. Mailed applications can take up to six weeks, so file online when you can.
If you operate under a trade name, such as a branded property name, register it through the BLS. The trade name registration fee is $5 for each trade name, and it is not filed with the Secretary of State or the county. If your lodging business is an LLC or corporation, file first with the Secretary of State through the Corporations and Charities Filing System (CCFS) at ccfs.sos.wa.gov. The Certificate of Formation filing fee is $180, and the Secretary of State must process the entity before you submit the BLS application. Sole proprietors and general partnerships do not file with the Secretary of State.
Step-by-Step Checklist
- Count your units. Confirm whether you have three or more lodging units rented to guests for under 30 days.
- Identify your fee tier. Use $230 for 3 to 10 units, $458 for 11 to 49 units, or $922 for 50 or more units, and confirm the current amount with DOH.
- Apply with DOH 60 or more days before opening. The application packet includes verification of your UBI, so get your UBI first. Give yourself a buffer for review.
- Form your entity if needed. File the Certificate of Formation through CCFS, and name a registered agent with a physical Washington street address.
- Register with the BLS. Obtain your UBI, add city endorsements, and register any trade name.
- Look up your local lodging rate. Use the DOR lodging rate file for your exact address.
- Review platform tax collection. Confirm what each marketplace collects and remits, and what you still report yourself.
- Calendar your renewals. Renew on time to avoid the $77 late fee within 35 days, or the $300 late fee after that window.
Where to Get Help
Each agency answers a different question. DOH handles the transient accommodation license and its fees. The Department of Revenue handles the BLS application, sales tax, B&O tax, and the lodging rate file. The Secretary of State handles entity formation and annual reports. For free one-on-one guidance on planning a business, the Washington Small Business Development Center (Washington SBDC) offers advising at wsbdc.org.
Short-term rental operations often involve several taxes, a licensing requirement, and local rules that vary by address. A qualified attorney can review your entity and liability setup, and a CPA can confirm how your tax obligations apply to your specific bookings and revenue.
Key Takeaways
- Three or more lodging units rented for under 30 days require a DOH transient accommodation license under RCW 70.62.
- The annual license fee is $230 for 3 to 10 units, $458 for 11 to 49 units, and $922 for 50 or more units, as of December 1, 2025.
- Apply 60 or more days before opening. Late renewal costs $77 within 35 days of expiration and $300 after that.
- Rentals under 30 days are subject to retail sales tax and retailing B&O tax, and local lodging tax rates depend on your address.
- Register with the BLS for your UBI and endorsements before you collect tax.
Reminder: This guide is informational content, not legal or tax advice. Verify all fees, deadlines, and rates with the relevant agency before you act.