Seattle, WA Airbnb & Short-Term Rental Regulations [2026 Guide]
Everything you need to know about operating a legal short-term rental in Seattle, Washington. Complete guide to licensing, primary residence requirements, taxes, and compliance requirements updated for 2026.
Seattle has established a comprehensive regulatory framework for short-term rentals that balances the interests of hosts, guests, and residential neighborhoods. With its thriving tech economy and tourist attractions, Seattle is an attractive STR market - but understanding the dual-license system, primary residence requirements, and tax obligations is essential for legal operation.
Regulation Overview
Seattle defines short-term rentals as stays under 30 consecutive nights. The city implemented its current STR regulatory framework in 2017, with ongoing updates to address evolving market conditions and neighborhood concerns. Seattle's approach focuses on primary residence requirements, unit caps, and platform accountability.
Key Regulatory Bodies
- Seattle Department of Finance and Administrative Services: Issues Business License Tax Certificates and STR Operator Licenses
- Seattle Department of Construction and Inspections (SDCI): Handles RRIO registration and code compliance
- Washington State Department of Revenue: Administers state sales and lodging taxes
- King County: Oversees county-level lodging taxes
License Requirements
Seattle requires a two-license system for all short-term rental operators. Both licenses must be obtained before you can legally advertise or rent your property.
Required Licenses
Apply through FileLocal; $75 fee; allow 48 hours for processing; must be obtained first
Apply through Seattle Services Portal after receiving business license; $75 fee; must be displayed on all listings
Required for non-primary residence units; $70 fee; includes inspection requirement
Required for tax purposes; register with Washington State Department of Revenue
Application Process
- Step 1: Apply for Seattle Business License Tax Certificate through FileLocal
- Step 2: Wait 48 hours for processing
- Step 3: Apply for STR Operator Regulatory License through Seattle Services Portal
- Step 4: If renting a secondary residence, obtain RRIO registration
- Step 5: Register with Washington State Department of Revenue for tax purposes
- Step 6: Display license number on all listings in required format
License Display Requirements
Your STR Operator License number must be displayed on every listing across all platforms. The license must appear in the exact format:
Primary Residence Rules
Seattle's primary residence requirement is a cornerstone of its STR regulations. Understanding this requirement is crucial for legal operation.
Primary Residence Requirement
- At least one of your STR units must be your primary residence
- Your primary residence is the dwelling where you live most of the time
- You can rent your entire primary residence while traveling
- You can rent rooms within your primary residence while living there
What Counts as Primary Residence
| Scenario | Qualifies as Primary Residence? |
|---|---|
| Home where you live year-round | Yes |
| Home rented while you travel for work/vacation | Yes |
| Spare bedroom in your home | Yes (covered under primary) |
| Investment property you don't live in | No - requires RRIO as secondary unit |
| Vacation home/second home | No - requires RRIO as secondary unit |
Unit Limits
Seattle limits the number of short-term rental units an operator can manage to prevent commercial-scale operations in residential neighborhoods.
Maximum Units Allowed
- Standard Limit: Up to 2 dwelling units per operator
- Primary Residence Requirement: At least one unit must be your primary residence
- Private Rooms: Rented rooms without their own kitchen or bathroom do not count as separate units
Legacy Unit Permissions
Operators who were legally running STRs prior to September 30, 2017 may qualify for "legacy unit" permissions, allowing additional units beyond the standard limit. To qualify:
- Must upload documentation proving STR use within 12 months before September 30, 2017
- Documentation can include booking confirmations, tax records, or platform history
- Legacy status must be verified by the City
- Legacy permissions are not transferable to new owners
RRIO Registration
The Rental Registration and Inspection Ordinance (RRIO) is a separate requirement for short-term rental units that are not the operator's primary residence.
When RRIO is Required
- Operating a second STR unit (beyond your primary residence)
- Renting a vacation home or investment property
- Any dwelling unit used as an STR where you don't live
RRIO Requirements
$70 for RRIO registration
Property must meet basic housing maintenance requirements
Allows the City to inspect the property for code compliance
Must be obtained before applying for STR license for that unit
Lodging Taxes
Seattle STR operators face a complex tax landscape with multiple overlapping taxes. Understanding your obligations is critical for profitability and compliance.
| Tax Type | Rate | Collected By |
|---|---|---|
| Washington State Sales Tax | 6.5% | Platform or Host |
| Seattle Lodging Tax | 10.1% | Platform or Host |
| Convention & Trade Center Tax (King County) | 7.0% | Platform or Host |
| Business & Occupation Tax | 0.471% | Host |
| Maximum Combined Rate | Up to 15.2% | - |
Platform Tax Collection
Airbnb, VRBO, and major platforms collect and remit state and local taxes automatically in Washington State. These taxes are paid by guests and appear as separate line items on booking receipts.
Host Tax Responsibilities
Even with platform collection, hosts remain responsible for:
- Registering with Washington State Department of Revenue
- Filing Business & Occupation (B&O) tax returns
- Collecting and remitting taxes on direct bookings
- Maintaining accurate records for potential audits
- Verifying platform tax collection matches required rates
Key Restrictions
Seattle imposes several operational requirements to protect neighborhood quality of life and ensure guest safety.
Safety Requirements
Must be posted in the unit including emergency contacts and exit routes
Must provide guests with a local contact phone number
Unit must meet current building and safety code requirements
Working smoke and carbon monoxide detectors required
Zoning Compliance
STR properties must comply with the City Land Use Code, including zoning restrictions that may prohibit short-term rental activity in some areas. Before applying for an STR license:
- Verify your property's zoning designation permits STR use
- Check for any neighborhood overlay restrictions
- Review HOA or condo association rules for STR prohibitions
- Confirm lease agreements (if renting) allow subletting
Insurance Requirements
Washington State requires Airbnb hosts to maintain at least $1,000,000 in liability insurance covering bodily injury and property damage. While Airbnb's Host Protection Insurance provides some coverage, many experts recommend additional dedicated STR insurance.
Penalties & Enforcement
Seattle actively enforces its STR regulations through routine audits, platform monitoring, and complaint-based investigations. The city's "three strikes" approach means multiple violations can permanently disqualify operators.
Violation Penalties
| Violation Type | First Offense | Subsequent Offenses |
|---|---|---|
| Operating without STR License | $500 penalty | $1,000 penalty |
| Operating without Business License | $513 citation | Increased fines |
| Code violations (unfixed) | $150-$500 per day | Until compliance achieved |
| Missing license number on listing | Listing removal | License review |
| Repeated violations | License revocation + waiting period to reapply | |
Enforcement Methods
- Routine Audits: City routinely audits listings for compliance
- Platform Cooperation: Platforms share listing data and remove non-compliant listings
- Complaint Investigation: City responds to neighbor complaints
- Property Tax Liens: Unpaid penalties can be added to property tax bills
License Revocation Triggers
Licenses may be revoked if hosts:
- Repeatedly violate operational rules or safety standards
- Ignore enforcement notices or fail to correct cited issues
- Operate properties that no longer meet eligibility requirements
- Accumulate multiple violations (three strikes policy)
2026 Regulatory Updates
Seattle continues to refine its STR regulations. Here are the key developments and considerations for 2026:
Current Regulatory Focus
- Platform Accountability: STR platforms must submit monthly and quarterly reports to the City and pay quarterly fees
- License Verification: Increased platform cooperation on license verification and listing removal
- Primary Residence Audits: Enhanced verification of primary residence claims
- RRIO Compliance: Stricter enforcement of RRIO requirements for secondary units
Potential 2026 Changes
Washington State legislature has considered temporary lodging tax increases, particularly in anticipation of major events. Key developments to monitor:
- HB 1882 proposing additional temporary state lodging tax in mid-2026
- Potential revenue allocation to enhanced tourism accounts
- Possible adjustments to platform reporting requirements
- Updates to insurance minimum requirements
Best Practices for 2026
- Maintain current licenses and renew before expiration
- Keep accurate records of all bookings and tax payments
- Respond promptly to any City inquiries or inspections
- Monitor regulatory updates through official City channels
- Consider working with a local STR management company familiar with Seattle regulations
Frequently Asked Questions
Seattle requires two licenses: a Seattle Business License Tax Certificate and a Short-Term Rental Operator Regulatory License. Both cost $75 each and must be renewed annually. Apply for the business license first through FileLocal, wait 48 hours, then apply for the STR license through the Seattle Services Portal. If renting a secondary residence, you also need RRIO registration for $70. Your STR license number must be displayed on all listings in the format STR-OPLI-##-######.
Seattle allows hosts to operate up to two dwelling units as short-term rentals, but at least one must be the operator's primary residence. Private room rentals without their own kitchen or bathroom do not count as separate units and are covered under your primary license. Legacy operators who were running STRs before September 30, 2017 may qualify for additional unit permissions with proper documentation, but these permissions don't transfer to new property owners.
Seattle STR operators must collect approximately 15-16% in combined taxes including: 6.5% Washington state sales tax, 10.1% Seattle lodging tax, and potentially 7% Convention and Trade Center Tax in King County. There's also a Business & Occupation tax of 0.471% on gross receipts. The maximum combined rate is capped at 15.2%. Airbnb and VRBO collect and remit state and local taxes automatically on behalf of hosts, but you must still register with the state and file B&O tax returns.
At least one of your STR units must be your primary residence under Seattle regulations. If you want to operate a secondary unit that is not your primary residence (such as a vacation home or investment property), it must be registered with the Rental Registration and Inspection Ordinance (RRIO) prior to STR licensing. RRIO costs $70, requires the property to meet basic housing maintenance requirements, and allows the City to inspect the property.
Operating without a short-term rental regulatory license results in a $500 penalty for the first violation and $1,000 for subsequent violations. Operating without a business license can result in a $513 citation. If cited for code violations and you fail to fix them, the city can fine you $150-$500 per day until compliance. Unpaid penalties can be added to your property tax bill. Seattle's "three strikes" approach means repeated violations can permanently disqualify operators, and licenses may be revoked requiring a waiting period to reapply.
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