Guide · Cost to run
What it costs to run a Seattle short-term rental.
Seattle's operator license is $75 per unit a year, which is low. The costs that matter are the 15.7% lodging tax, the two-unit cap that ties you to a primary residence, and $1 million in liability coverage.
The short answer
Four numbers to know
| Operator license | $75 per unit, renewed annually Valid for 12 months from issue. It is separate from the Seattle Business License Tax Certificate, whose cost varies with your gross revenue. |
|---|---|
| Lodging tax | 15.7% on stays under a month The Washington Department of Revenue lodging table lists 15.7% for Seattle short-term rentals, including a 7% King County convention and trade center tax. Seattle has no separate per-night tax on operators. |
| Unit cap | Two units, one of them your home Most operators may run their primary residence plus one other unit. A separate house, condo or cottage that is not your home must also register under the rental registration and inspection program (RRIO). |
| Penalties | $500, then $1,000 per violation For operating without the license. Code violations left uncorrected can add $150 to $500 a day. |
Fixed cost
What the license costs
The columns show how many booked nights, at an example nightly rate before tax, cover the license (examples, not forecasts).
| Item | Amount | Nights at $150 | Nights at $250 | Nights at $400 |
|---|---|---|---|---|
| Operator license, per unit per year | $75 | 0.5 | 0.3 | 0.2 |
| Two units, per year | $150 | 1.0 | 0.6 | 0.4 |
Source: City of Seattle Short-Term Rentals page, read October 7, 2026. Not included: the Business License Tax Certificate, any Washington state licenses, Washington B&O tax, insurance premiums, and RRIO registration for a unit that is not your home. Platforms separately pay the city $4 for each night booked, which is not charged to you directly.
Guest-paid, but it shapes your price
The tax stack on a stay
An illustration: 3 nights at $300 is a $900 rental price. At the lodging rate, tax comes to about $141.30.
| Tax | Rate | On the $900 example |
|---|---|---|
| State, local and transit sales tax (lodging rate) | 8.7% | $78.30 |
| King County convention and trade center tax | 7.0% | $63.00 |
| Total | 15.7% | $141.30 |
This is a simplified illustration on the base rental price. The 15.7% total and the 7% convention tax are from the Department of Revenue lodging rate table; the sales tax line is the remainder of that total. Washington publishes lodging rates every quarter, and the general retail sales rate for Seattle (10.55% from January 1, 2026) is a different table, so check the current lodging table before you price. Some platforms collect and remit these taxes on their bookings.
What you need to do
Before your first guest
| Primary residence | Proven with two documents For example a tax return, driver's license, lease or mortgage, or a bank statement. The city rule sets no minimum number of days. |
|---|---|
| Listing | License number on every listing In the format STR-OPLI-##-######. You also need a posted safety notice, carbon monoxide alarms and a guest contact during stays. |
| Insurance | $1 million primary liability Or book every stay through a platform that provides equal or greater coverage, under Washington law. |
| Where not allowed | Non-dwelling spaces and some zones RVs, tents, garages and boats do not qualify, and zoning prohibits short-term rentals in some areas. |
Full sourced rules, with evidence for each line, are on the Seattle market page. For another West Coast market, see the Portland page.
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