Washington short-term rental rules for owners

Washington is one of the few states with a chapter of law written specifically for short-term rentals, yet that chapter says almost nothing about where they may operate. Chapter 64.37 of the Revised Code of Washington, adopted in 2019, sets duties for operators and platforms: taxes, safety, insurance. Zoning, permits and caps are left to cities and counties, and the gap between a relaxed regime and a closed one can be a single county line.

RCW 64.37: the statewide baseline

The law defines a short-term rental as lodging in a dwelling unit offered for fewer than 30 consecutive nights by an operator who is paid for it. Owner-occupied homes renting out fewer than three rooms, stays of 30 nights or more, and certain charitable housing are outside the definition. For everyone else:

• Taxes: the operator must remit applicable local, state and federal taxes unless a platform collects them on the operator's behalf.
• Safety: guests must have a contact reachable during the stay; carbon monoxide alarms must meet the building code; and the unit must display the street address, emergency numbers, a floor plan with exits, the maximum occupancy and the operator's contact details.
• Insurance: primary liability coverage of at least $1,000,000 in the aggregate, or equivalent coverage provided through the platform.
• Enforcement: a first violation brings a warning letter; later ones are class 2 civil infractions.

Platforms, for their part, must register with the Department of Revenue, tell operators about tax obligations and safety rules, and warn them in writing that a homeowner policy may not cover rental liability.

Taxes on each stay

Washington has no income tax, but lodging is taxed through several layers. Stays under 30 days are subject to retail sales tax at the state rate of 6.5% plus the local rate, and in many places to special hotel-motel or convention center taxes. Operators also need a state business license and UBI number, and business and occupation tax applies to the income. Platforms collect a large share for bookings made through them; direct stays are the owner's responsibility.

A new local tax has been debated for years. In 2026, HB 2559 proposed letting cities and counties add an excise tax of up to 4% on short-term rentals to fund affordable housing. It cleared the House Finance Committee in January and then stalled: as of late September 2026 it remained in the House Appropriations Committee and has not become law.

Local control: the four patterns

• Permit and taxes, no cap. Many cities simply require a business license and a local permit. Spokane treats a short-term rental as an administrative permit, allowing one in a detached house and up to 20% of the units in a sprinklered multifamily building.
• Permit with a unit limit per operator. Olympia issues vacation rental permits on top of a business license, with a local contact nearby and a general limit of two units per operator.
• Zone restrictions. Ocean Shores, since its 2025 ordinance, allows short-term rentals only in its B-1 and B-2 zones, with annual fire and building inspections and non-transferable permits.
• Caps on housing share. Unincorporated Chelan County limits rentals to 6% of housing units per area, with some growth areas at zero; around Leavenworth, Plain and Lake Wenatchee the caps are exceeded, so no new permits are available.

Unincorporated areas follow county codes. Grays Harbor County, for example, has required an annual short-term rental permit in specified zones since 2022.

Condos, associations and insurance

Condominium declarations and association rules can prohibit or limit short stays whatever the city allows. On insurance, the statutory $1,000,000 minimum is only a floor: ask about coverage for guest injuries, property damage by guests and loss of income, and check wildfire exposure in the Cascades and eastern counties.

Our Washington markets

• License, capped: Leavenworth & Cascade Mountains.
• Registration or permit without a cap: Tacoma & Olympia, Spokane, Grays Harbor (with Ocean Shores now limited to commercial zones).

Owner checklist

• Obtain a state business license and UBI number; register for sales and lodging taxes.
• Confirm the zone and local permit, and whether a cap or waiting period applies.
• Carry at least $1,000,000 of liability coverage and document it.
• Post the RCW 64.37 information inside the unit and install compliant CO alarms.
• Read association documents and ask whether the permit transfers on sale.

If you own or plan to buy in Washington, we study every request and tell you honestly whether and how we can help.