Washington State's Olympic Peninsula, San Juan Islands, Puget Sound waterfront, and vibrant Seattle create exceptional and varied STR demand across diverse geographies. Whether you already own a vacation rental in Washington or are evaluating your first investment, understanding the regulatory landscape is essential. STR laws in Washington vary significantly by city and county — and getting compliance wrong can mean fines, forced delistings, or lost income.
This guide covers Washington's approach to short-term rental regulation at the state level, then breaks down the rules in key markets investors and hosts need to know. Regulations as of 2026 — always verify current rules directly with your local municipality before listing.
If you'd like help navigating STR compliance in Washington, Awning's property management team operates in Seattle, the San Juan Islands, and Leavenworth and helps hosts stay compliant while maximizing revenue.
How Washington Defines a Short-Term Rental
For regulatory and tax purposes, a short-term rental in Washington is generally defined as a residential property rented for 30 consecutive days or fewer. Any rental longer than this threshold is typically treated as a long-term rental and subject to different rules.
Does Washington Require a Statewide STR License?
Washington does not have a statewide STR permit requirement. Local jurisdictions regulate STRs, with Seattle and other cities having detailed regulatory frameworks.
Washington Short-Term Rental Taxes
Washington imposes a 6.5% state retail sales tax on STR income, plus local sales taxes (Seattle's combined rate is approximately 10.35%). Airbnb collects and remits state and most local taxes automatically.
Regardless of which booking platform you use, it is your responsibility as a host to ensure all applicable taxes are collected and remitted correctly. Failure to comply can result in penalties, back taxes, and potential loss of your ability to operate.
STR Regulations by City in Washington
Below are the key STR markets in Washington and their current regulatory requirements. City regulations change frequently — check with your local planning or licensing department for the most current rules before investing.
Seattle
Seattle requires STR operators to obtain a Short-Term Rental Operator License. The city limits non-owner-occupied STRs to one property per operator and requires annual renewal. Seattle has some of the most detailed STR regulations in the Pacific Northwest.
San Juan Island
San Juan County requires STR registration and compliance with county zoning. The islands' ferry-only access and limited housing stock make STR regulation politically sensitive, and some islands have debated caps on total STR units.
Leavenworth
Leavenworth, a Bavarian-themed mountain village, requires STR operators to obtain a city business license and comply with zoning. The town's extreme seasonal demand makes STRs highly profitable, though the city has tightened rules in residential neighborhoods.
Key Questions to Ask Before Listing an STR in Washington
- Does your city or county require an STR permit or license?
- Are there caps on the number of STR permits in your neighborhood or zone?
- Is your property owner-occupied or non-owner-occupied — and does that distinction affect your eligibility?
- What occupancy, noise, and parking rules apply to your specific property?
- Which taxes are you responsible for collecting and remitting vs. what the platform handles?
- Does your HOA or condo association allow short-term rentals?
The Bottom Line
Washington's STR regulatory environment ranges from investor-friendly rural counties to tightly regulated resort towns and urban cores. Understanding the specific rules in your target market — not just at the state level — is what determines whether your rental operates smoothly or faces costly disruptions.
Staying on top of changing regulations is one of the most valuable things a professional property manager brings to your operation. Awning manages short-term rentals in Seattle, the San Juan Islands, and Leavenworth and monitors local regulatory changes so you don't have to. Reach out to learn how we can help you operate compliantly and profitably in Washington.


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