Bavarian-style storefronts and cabins in Leavenworth, Washington under a clear autumn sky with the Cascades behind

Step 3 · The state layer, then the county that actually decides

Washington State Short-Term Rental Laws, Taxes and County Permits

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Adriano Tori

Designated Broker, Founder & CEO — RexMont Real Estate · WA Lic. #27660

Adriano leads RexMont Real Estate — the most-reviewed real estate brokerage in Seattle and the Eastside. 1,200+ closed transactions, $1B+ in production, and 1,241 five-star Google reviews.

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Written and reviewed by Adriano Tori, Designated Broker, WA Lic. #27660 · last reviewed September 19, 2026 · RexMont Real Estate, 1,241 five-star Google reviews, $1B+ closed across 1,200+ transactions. Not tax, legal or lending advice.

The short answer

Washington has one statewide short-term rental law, RCW 64.37 (2019): a short-term rental is a dwelling offered for fewer than 30 consecutive nights; operators must remit all taxes unless the platform does, carry $1,000,000 in liability coverage or rely on equivalent platform coverage, and post safety and contact information. It does not cap, license or zone short-term rentals. Counties and cities do.

In most Washington vacation markets the permit does not survive a sale. Chelan County, Ocean Shores, Westport, Grays Harbor County, Pacific County, Long Beach, Cle Elum, Roslyn, Winthrop, Twisp, Port Angeles, Bellingham, White Salmon, Gig Harbor and Bainbridge Island all make the permit personal to the owner. San Juan County and Kitsap County permits run with the land. Jefferson County ties the permit to the property but bars new owners from renting for their first calendar year.

Where a cap is full (Leavenworth-area Chelan County, Port Angeles, Twisp), buying a permitted rental buys you the house, not the right to rent it nightly.

Investors from Seattle and the Eastside tend to arrive in Leavenworth or Ocean Shores assuming the rules are like a big city's: get a license, follow the standards, operate. Washington's vacation markets work differently. The state statute is short and mostly about taxes and safety. The permission to run a nightly rental at a particular address comes from the county or city code, and that code decides three things that drive value: whether the use is allowed in that zone at all, whether new permits are capped or paused, and whether the permit belongs to the owner or to the land. The third point is the one that turns a "turnkey Airbnb" listing into an ordinary cabin the day escrow closes.

This page is RexMont's working reference for the statewide layer and for every destination county we help clients buy in. Each row was checked against the current code, the county's own permit page or the adopting ordinance on the date in the byline. Codes are changing fast: Ocean Shores rewrote its rules in October 2025, Jefferson County adopted a 4% cap in April 2025, Redmond licensed rentals for the first time in January 2026, Kittitas County is holding hearings on its first permit chapter this month, and Chelan County's one-time transfer window for grandfathered permits is closing. Confirm the section for a specific parcel before you remove contingencies; we do that as part of representation. Seattle and the Eastside cities are covered on their own page.

RCW 64.37: what the state actually requires

RCW 64.37, enacted in 2019 and unamended since, defines a short-term rental as a lodging use that is not a hotel, motel or bed and breakfast, in which a dwelling unit is offered for a fee for fewer than thirty consecutive nights. Owner-occupied homes where the owner lives at least six months a year and rents fewer than three rooms are outside the definition. The operator must remit all applicable local, state and federal taxes unless the platform does so on their behalf (64.37.020); provide guests a contact number, comply with the carbon monoxide alarm law, and post the street address, an emergency contact, a fire-exit floor plan, the maximum occupancy and the operator's contact information (64.37.030); and maintain primary liability insurance in the aggregate of not less than one million dollars, or rely on a platform that provides equal or greater coverage (64.37.050). Platforms, not operators, must register with the Department of Revenue and warn operators that personal insurance may not cover rental liability. A first violation draws a warning; later ones are class 2 civil infractions.

Two things the statute does not do: it does not require an operator to hold any state permit, and it does not preempt local regulation. Bills to add a local short-term rental tax died in 2025 and again in 2026, so the tax picture below is the one that applies.

Taxes on every stay under 30 nights

The Department of Revenue treats a stay of less than 30 consecutive days as transient lodging: retail sales tax applies to the full rental charge, plus the special hotel-motel tax where the county or city imposes one, plus in King County the convention and trade center tax (7% in Seattle, 2.8% elsewhere in the county). DOR's online marketplaces guidance confirms that Airbnb collects and remits state and local retail sales tax, special hotel-motel taxes and convention center taxes on hosts' behalf. Hosts may still need a state business license and a DOR account, must report gross income and claim the facilitator deduction, and owe retailing business and occupation tax after the small-business credit. Direct bookings are entirely yours to collect and remit. Rates for every jurisdiction are in the DOR lodging rate history, published quarterly.

When you buy or sell the property, the real estate excise tax applies: a state graduated rate of 1.10% to $525,000, 1.28% to $1,525,000, 2.75% to $3,025,000 and 3.00% above, with those breakpoints stepping up to $551,000, $1,551,000 and $3,051,000 for closings on or after January 1, 2027, plus a local rate that runs from 0.25% in Grays Harbor, Pacific, Okanogan and Skamania counties to 0.50% in Chelan, Kittitas, Island, Mason, Jefferson, Clallam, Pierce, Lewis, Whatcom and Kitsap, and 2.00% in San Juan County. Furnishings itemized on the excise affidavit are deducted from the taxable price. The seller-side calculator on the cost-to-sell page applies the right county rate.

County and city permits: the table that decides value

Read the last two columns first. "Cap" tells you whether a new owner can get a permit at all; "Transfers at sale" tells you whether the seller's permit is worth anything to you. Everything else is operating detail. Drive times are approximate.

Washington vacation-market STR permit rules, verified September 2026
Jurisdiction	Where allowed / owner-occupancy	Permit and cost	Cap or moratorium	Transfers at sale?
Chelan County unincorporated (Leavenworth area, Plain, Lake Wenatchee, Lake Chelan, Manson) — CCC 11.88.290	Tier 1 owner-occupied (max 8 guests) anywhere; Tier 2 non-owner-occupied (max 12) and Tier 3 (max 16) only where under cap, with minimum lot sizes and 200-ft spacing	Annual administrative permit; 2026 fees $728 Tier 1–2, $1,092 Tier 3; expires Dec 31; Fire Marshal inspection every other year; septic sets bedroom count	6% of housing stock per ZIP and subarea. Aug 2026 county stats: Leavenworth 98826, Lake Wenatchee and Plain are over cap (closed); Chelan 98816 and Manson have openings. New Tier 2–3 applications only June 1–July 31	No. "The permit is not transferable, even in the event of death or divorce." Grandfathered permits had a one-time transfer within five years of the 2021 code (three in the Manson UGA), a window that sunsets in late 2026; confirm the exact date with Community Development
City of Leavenworth — LMC 18.25, 18.52.120	Whole-home vacation rentals only in commercial zones (GC, CC, TC). Residential zones allow only owner-on-site bed and breakfasts, ≤2 rooms, by conditional use	B&B conditional use permit + business license + inspection	B&Bs barred once they reach 4% of housing stock in residential zones	No. B&B permits "expire immediately upon transfer of ownership" (effective Jan 1, 2025)
City of Chelan — CMC 5.15, 17.77	Only in DMU, TMU, C-HS, C-W, T-A zones, plus agricultural SUD parcels by conditional use since 2025; residential zones excluded	Annual operating license, $600 new / $300 renewal; inspection then annual self-certification; contact within 30 minutes	No percentage cap in allowed zones; 10 new agricultural licenses per year	No. License is in the owner's name and not transferable; new owner has 60 days to update and may finish the year, then reapplies
Kittitas County unincorporated (Suncadia, Ronald, Lake Cle Elum, Snoqualmie Pass) — KCC 17.08.486	No county permit today; definition adopted Jan 2025. Draft Chapter 17.63 (annual permit, owner-occupied exempt, noise monitors) at Planning Commission hearing Sept 22, 2026, county action expected Nov 2026. Suncadia MPR zoning allows STRs; SROA registration required	None yet; draft would add an annual permit with a management plan	None yet	Draft: "non-transferable. Any change in ownership shall require a new permit." Watch this
City of Cle Elum — CEMC 17.160	Allowed; 250-ft spacing between STR parcels in residential zones; max 3 permits per host; not in 5+ unit apartments	Permit + business license, $1,000 per year, calendar-year term; building inspection	Spacing rule acts as a soft cap in residential zones	No. Permits "are not assignable or transferable and shall automatically expire upon sale or transfer of the property"
City of Roslyn — RMC 18.140.040	Whole-house vacation rentals only in the Commercial zone; residential zones allow owner-occupied "home accommodation," ≤2 bedrooms	Annual permit expiring Dec 31 + business license + safety inspection; 1 space per bedroom	Zoning is the cap	No. "Permits for short-term rentals are nontransferable upon sale of property"
Grays Harbor County unincorporated (Seabrook, Pacific Beach, Copalis, Moclips) — GHCC 17.60.020	Only in G-1, G-5, R-2, R-3, RR, LQ, C-2 zones (R-1 excluded). Seabrook homes typically operate in the community's rental program	Annual permit via SmartGov; $1M insurance; occupancy 2 per bedroom + 2 or septic capacity, whichever is less; 1 space per bedroom; quiet 10 p.m.–7 a.m.	No numeric cap	No. "Any permit issued pursuant to this section is non-transferable"
City of Ocean Shores — OSMC 17.49 (Ord. 1148, Oct 2025)	Only in B-1 and B-2 commercial zones. Residential zones cannot host STRs; zone denials cannot be appealed	Permit + business license per property; building and fire inspection before approval and annually; local rep responds within 2 hours	One STR per parcel; no numeric cap in commercial zones	No. Permit is "nontransferable and void upon the subject property transferring ownership"; no new bookings until the new owner's permit issues
City of Westport — WMC 17.22	All zones that allow single-family homes; one per parcel	Approval + business license: $750 new, $250 renewal; annual safety inspection; rep responds within 30 minutes	No numeric cap	No. New owner "shall apply for and must receive" approval before use
Pacific County unincorporated (Seaview, Ocean Park, Klipsan, Surfside) — Ord. 194 §21.N	Permitted in R-3, C-C, MU-T; special use with hearing in R-R, R-2, RL, MU; prohibited in R-1 (grandfathered R-1 rentals die at sale); 300-ft spacing in R-2 and R-R	Land-use permit + annual license: about $975 (permitted zones) or $2,175 plus hearing (special use); septic O&M every 3 years; fire inspection every 2; occupancy 2 per bedroom + 2, max 10; quiet 10 p.m.–8 a.m.	Spacing rule; no numeric cap	No, but a buyer may pre-apply with the seller's consent, conditioned on closing
City of Long Beach — §12-11-9	Allowed; 200-ft spacing from other rentals in R2R and S2; one structure per lot	Annual license + land-use permit; septic and fire inspections every year	Spacing rule	No, and the new owner "must wait a minimum of three months prior to applying"
City of Ilwaco — IMC 15.41	Prohibited in R-1 and R-2; permitted in R-3, R-4, R-5 and commercial zones	Business license + annual fire inspection; occupancy formula by zone	None	Silent; new owner needs own license and inspection
Island County unincorporated (Whidbey, Camano)	No STR permit or use chapter; 2026 code defines STRs and bars them in rural affordable clusters	None; state law and general zoning apply	None	n/a
City of Langley — LMC 5.40	Type I hosted rooms and Type II hosted inns in residential zones; Type IV whole-unit non-hosted capped	Annual license (expires Dec 31, renewal in September); inspection or self-assessment; septic bedroom limit; quiet 9 p.m.–9 a.m.	Type IV whole-unit licenses limited to 15; one per owner; ADU rentals capped at 30	No for Type I and IV ("do not run with the land"); Type II and III transferable
Town of Coupeville — CTC 5.38	Commercial zones only; residential STRs legal only if established before Dec 1, 2019 and not abandoned	Annual license, $100 with fire inspection; contact within 20 road miles; quiet 10 p.m.–7 a.m.	Zoning is the cap	No. Licenses "shall not be transferrable"; grandfathered status stays with the property if use continues
San Juan County (San Juan, Orcas, Lopez) — SJCC 18.40.275	Vacation rental permit required; one per property outside UGAs; not on conservancy shorelines or resource lands; local rep must live on the island	Provisional use permit ~$1,000 or conditional use ~$2,300; annual certificate of compliance $145; 2 guests per bedroom + 3; 1 space per bedroom	Caps: Orcas 211, San Juan 337, Lopez 135, other islands 10; new permits by lottery when slots open; Eastsound and Lopez Village commercial areas newly regulated (2025)	Yes, in most cases: permits run with the land; buyer certifies compliance within 90 days of closing. Some older permits were issued to a named owner; permits approved after March 2018 expire if annual certificates lapse
Town of Friday Harbor	Transient accommodations only in the Commercial zone; prohibited in residential zones and ADUs; moratorium on new ones since Dec 2025, Ord. 1841 (Aug 2026) moves them to minor conditional use	Business license	Moratorium / conditional use	n/a (zoning-based)
Mason County unincorporated (Hood Canal, Union, Lake Cushman, Belfair)	No county STR ordinance; the 2024 draft was shelved until after the comprehensive plan. Lake Cushman Maintenance Company requires annual HOA registration, 2 per septic-approved bedroom + 2	None at county level; 4% county lodging tax applies	None	n/a at county; Lake Cushman buyer re-registers within 30 days
Jefferson County unincorporated (Port Ludlow, Brinnon, Quilcene, Chimacum) — Ord. 03-0407-25	Type I permit in rural and resource zones for ≤5 rooms / ≤10 guests; no owner-occupancy rule; one permit per operator; occupancy limited to septic design capacity	Annual permit with fire, safety and health inspection; land-use fee roughly $165–$294 (county schedules conflict; confirm)	4% of unincorporated dwellings (468 at adoption), allocated by ZIP, waitlist when full; master planned resorts exempt	Tied to the property, but new owners "are prohibited from renting… within the first calendar year of ownership" outside the resorts
City of Port Townsend — PTMC 17.57	Whole-house STRs prohibited in residential zones; only owner-on-site tourist homes (≤2 rooms) and B&Bs by conditional use	Conditional use permit (~$782 minor) + $25 annual STR business license	Owner-occupancy is the cap	The CUP runs with the land, the business license does not; the use only works for a buyer who moves in
Clallam County unincorporated (Sequim-Dungeness, Joyce, Lake Crescent) — CCC 33.51	Whole-home vacation rental "is an allowed use in all zoning districts that allow single-family residences"; either the house or the ADU, not both	No county permit; fire life-safety inspection; occupancy consistent with septic design capacity; adequate on-site parking	None	n/a (no permit)
City of Port Angeles — PAMC 17.23	Type I (owner's principal residence, owner present) uncapped; Type II (not principal residence) capped	3-year license: Type I $882, Type II $1,470; fire inspection; quiet 10 p.m.–7 a.m.; contact responds within 60 minutes	Type II capped at 200 (or 2% of single-family/duplex units); 200 of 200 issued as of Sept 2026, waitlist	No. "If the property is sold, the license terminates"; it "is not a vested transferable right"
City of Sequim	No STR regulation; general business license and lodging tax	None	None	n/a
Pierce County unincorporated (Ashford, Elbe, Key Peninsula, Fox Island) — PCC 18A.37.040	Vacation rental is an accessory use in single-family and accessory dwellings; no owner-occupancy rule	Vacation Rental Affidavit filed with Planning; 2 guests per bedroom, max 10; neighbor notice; CUP only if standards cannot be met. County has an active STR regulations project (2026)	None	Silent; new owner files a new affidavit
Lewis County (Packwood, Randle) — LCC 17.105 (new, 2026)	Permitted; up to 2 STRs per parcel; occupancy 2 per bedroom + 3 or septic capacity	Annual Type I permit, $100 + $50 building review; life-safety inspection within 3 years; registration deadline Dec 31, 2026	Draft 25% cap was not adopted	Code is silent; county FAQ says the new owner must maintain annual recertification. Confirm with Community Development
Town of Winthrop — WMC 17.12.035	Overnight rental permit in allowed zones; owner-occupied rentals exempt from the cap	Annual permit + business license; up to $1,000/day for unpermitted operation	Permits capped at 10% of housing units (2025); waitlist	No. "Not transferable. To continue… a new owner must obtain a new permit and license within thirty days"
Town of Twisp — TMC 18.70	Residential zones owner-occupied only (owner lives there ≥9 months); non-owner-occupied only in commercial zones	Annual permit, applications Jan 1–31; contact within 1 hour; 1 space per bedroom + 1	Hard cap of 15 permits per year; 2 per owner	No. "Personal to the owner and is not transferable as part of the sale of property"
Okanogan County unincorporated (Mazama, Methow Valley) — OCC 17.270, 5.06	Nightly rental license; one per owner in the Methow Review District; new rentals largely limited to approved planned developments, with pre-2005 rentals grandfathered	Annual license + building inspection; max 10 guests overnight	One per owner; zoning limits	No. "Not automatically transferable… A permit application from the new property owner must be approved"
Whatcom County unincorporated (Glacier, Maple Falls, Birch Bay, Point Roberts) — WCC 20.97.220	Vacation rental unit is a permitted accessory use in rural and residential districts; conditional use in the Lake Whatcom watershed; 1 parking space per sleeping unit	No county registration adopted as of Sept 2026	None	n/a (no permit)
City of Bellingham — BMC 20.10.037	Residential zones: operator's primary residence only, whole unit ≤95 nights a year, one per household; commercial and urban village zones without those limits	Land-use permit $370–$847 by type; renewal $250 every even year; city inspection; $1M insurance; contact within 1 hour	Non-primary residences barred in residential zones	No. "Not transferable to another operator or location"
City of Blaine	Transient accommodations only in commercial and planned-recreation zones per the city's 2021 guidance; not in ordinary residential zones	Business license + lodging tax	Zoning	n/a
Kitsap County unincorporated — KCC 17.410.042	Vacation rentals of 1–4 rooms by administrative conditional use permit in most rural and urban residential zones; 5+ rooms by hearing examiner; prohibited in part of the Gorst UGA	ACUP about $4,785 (2026 fee schedule); conditions set case by case	None	Yes: conditional use permits "run with the land"
City of Bainbridge Island — BIMC 5.38	Allowed; owner-occupied primary residences exempt from neighbor notice	Annual certificate $293 + business license; $1M insurance; 2 per room + 1; contact within 60 minutes	None	No. Certificate is "personal to the owner"; new application within 14 days of ownership change
Poulsbo and Port Orchard	Poulsbo does not regulate STRs (ADUs may not be rented under 90 days). Port Orchard permits vacation rentals outright in all residential zones	City business license	None	n/a
City of Gig Harbor — GHMC 17.85	Allowed wherever dwellings are; one permit per permittee; no owner-occupancy rule	Type II permit $650 + business license with annual notarized compliance affidavit; contact within 1 hour	None	No. Permit "shall not be transferable" and ends when the owner changes
Skamania County (Carson, Stevenson environs) and City of Stevenson	County: annual tiered permit outside the National Scenic Area ($200–$500); inside the Scenic Area only the owner's residence, ≤90 room-nights a year. Stevenson: $200 annual vacation rental license, inspection at least every 5 years	As stated	None outside the Scenic Area	County: silent (new annual permit). Stevenson: business license "is not transferable"
City of White Salmon — WSMC 5.02, 17.57	Residential zones: owner-occupied primary residence only; whole-home rentals ≤150 nights a year; commercial zone without those limits	Annual permit about $325 plus a business license; annual fire inspection; 2 per bedroom + 2	10% of housing units with a queue; residential permits limited to 8 consecutive years; legacy rentals sunset Feb 2030	No. "Not transferable to a new property owner"; legacy status "does not transfer with title"

Compiled from each county's and city's current code, permit page or adopting ordinance, read September 19, 2026. Fee figures are the jurisdiction's published amounts and change annually. Quotations are from the code sections cited. RexMont re-verifies the applicable section for every specific parcel during the inspection period; this table is a map, not a substitute for that check. The Columbia Gorge markets sit largely outside NWMLS coverage; RexMont handles them by referral to a local broker.

Three patterns that decide whether a listing is really a short-term rental

1Zoning first. In Leavenworth, Ocean Shores, Roslyn, Coupeville, Friday Harbor, Port Townsend, Blaine and the City of Chelan, whole-home nightly rentals are confined to commercial or specific zones. A residential-zone home in those cities is not an Airbnb no matter what the listing says.
2Cap second. In Chelan County's Leavenworth, Plain and Lake Wenatchee subareas, Port Angeles Type II, Twisp and Winthrop, the count is full or nearly full. A non-transferable permit in a full district means the buyer joins a waitlist or a once-a-year application window. Price the property as a second home with upside, not as an operating business.
3Transfer third. Where the permit runs with the land (San Juan County, Kitsap County conditional use permits, Port Townsend tourist-home CUPs, Jefferson County with its one-year pause), an existing permit has real value and the purchase contract should protect it: seller cooperation, timely certificate filings, and a contingency on the county confirming continuation.

Septic is the hidden occupancy cap

Outside city sewer, most of these counties tie the guest count to the on-site sewage permit: Chelan limits rented bedrooms to the number approved by the health district, Grays Harbor and Jefferson use septic design capacity, and the state design rule (WAC 246-272A-0230) assumes two people per bedroom. A five-bedroom cabin on a three-bedroom septic is a three-bedroom rental. Ask for the septic as-built and the operation-and-maintenance report before you value the bedrooms.

Checklist

Permit due diligence, in order

Identify the exact jurisdiction: inside city limits, unincorporated county, an urban growth area, a master planned resort or a National Scenic Area each has different rules.
Confirm the zone allows whole-home stays under 30 nights, and whether that depends on the owner living there.
Check the current cap status for that ZIP, subarea or town, and the next application window.
Read the transfer clause in the code and, if the permit can continue, the exact steps and deadline for a new owner.
Pull the septic permit and O&M report; reconcile approved bedrooms against the listing's bedroom count.
Read the HOA or resort covenants; Suncadia, Seabrook, Lake Cushman and most island communities layer their own registration and conduct rules.
Confirm the lodging tax registration and remittance history; ask for DOR excise returns alongside platform payout reports.

FAQ

Questions Washington STR buyers ask first.

Does Washington State require a license to run an Airbnb?

There is no state short-term rental license. RCW 64.37 requires operators to remit taxes (unless the platform does), carry $1,000,000 of liability coverage or rely on equivalent platform coverage, and post safety and contact information. You also need a state business license and DOR registration for the lodging taxes. Permits and caps come from the county or city.

Does a short-term rental permit transfer when I buy a vacation rental in Washington?

Usually not. Chelan County, Ocean Shores, Westport, Grays Harbor County, Pacific County, Long Beach, Cle Elum, Roslyn, Winthrop, Twisp, Port Angeles, Bellingham, White Salmon, Gig Harbor and Bainbridge Island all make the permit personal to the owner. San Juan County and Kitsap County permits run with the land, and Jefferson County ties the permit to the property but bars new owners from nightly rentals for their first calendar year.

Can I get a short-term rental permit in Leavenworth in 2026?

Inside city limits, whole-home vacation rentals are only allowed in commercial zones. In unincorporated Chelan County around Leavenworth, Plain and Lake Wenatchee, the county's August 2026 statistics show non-owner-occupied permits over the 6% cap, so no new Tier 2 or Tier 3 permits are available there; the Lake Chelan and Manson areas still had openings. Owner-occupied Tier 1 permits are not capped.

What taxes do guests pay on a Washington vacation rental?

Stays under 30 consecutive nights are retail sales: state and local retail sales tax, any special hotel-motel tax the county or city imposes, and in King County the convention and trade center tax. The platform usually collects and remits these; the host still registers with the Department of Revenue, files returns and pays retailing B&O tax. Rates by jurisdiction are in DOR's quarterly lodging rate publication.

Which Washington counties have the fewest short-term rental restrictions?

As of September 2026, Clallam County (outside Port Angeles), Pierce County unincorporated, Mason County, Island County unincorporated, Whatcom County unincorporated, Port Orchard and Sequim have no permit or cap for whole-home rentals, relying on state law and general zoning. Several of these have active rule-making projects, so buy on the assumption that regulation arrives.

Sources we checked

Related on rexmont.com

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