Seattle Short-Term Rental Rules: Licenses, Caps, and Taxes

Running a short-term rental (STR) in Seattle is legal, but it is licensed, capped, and enforced. Before you list a single night you need two separate approvals from the City, you are limited in how many units you can run, and you must post a license number on every listing. Seattle defines a short-term rental as a home, or part of a home, rented for a fee for fewer than 30 consecutive nights; stays of 30 nights or more are not STRs (source: City of Seattle FAS, retrieved July 2026). That 30-night line decides whether these rules apply to you at all.

This guide covers what the City requires as of July 2026, with each rule tied to an official source. It is not legal or tax advice.

TL;DR: Get a Seattle business license tax certificate, then a short-term rental regulatory (operator) license at $75 per unit per year. You can operate at most two units you own, and if you run two, one must be your primary residence. There is no separate City STR tax, but Washington State and King County lodging taxes apply. Post your STR-OPLI number on every listing. Operating without a license triggers a $500 fine, then $1,000 per later violation.

What counts as a short-term rental in Seattle

Seattle’s STR rules come from Seattle Municipal Code (SMC) Chapter 6.600, which took effect January 1, 2019; the City began issuing STR regulatory licenses on January 2, 2019 (source: City of Seattle SDCI, retrieved July 2026). The definition is duration-based. Fewer than 30 consecutive nights is short-term; 30 nights or more falls outside the STR framework (source: City of Seattle FAS, retrieved July 2026). If you rent by the month, you are not an STR operator under this code, though other rules may still apply.

The two licenses every operator needs

Two approvals, in order. First, a Seattle business license tax certificate from Finance and Administrative Services (FAS). Then a short-term rental regulatory license, also called an operator’s license, applied for through the Seattle Services Portal (source: City of Seattle FAS, retrieved July 2026). The operator license fee is $75 per unit, valid for one year (12 months from the issue date), and renewed annually (source: City of Seattle FAS, retrieved July 2026). Budget both approvals into your launch timeline; you cannot legally list until the regulatory license is issued.

The two-unit cap and the primary residence rule

Seattle caps how many units one operator can run. You may operate up to two dwelling units you own as short-term rentals. If you operate two, one must be your primary residence (the home you usually return to); the second can be a unit you own but do not live in (source: City of Seattle FAS, retrieved July 2026). This is the single rule that most limits portfolio scale inside city limits: you cannot license a building of STR units under one operator.

Renters face a stricter line. Non-owners generally cannot get an STR operator license, with one narrow exception: renters in the Downtown Urban Core whose units have operated as short-term rentals since before September 30, 2017 (source: City of Seattle FAS, retrieved July 2026).

Where STRs are and are not allowed

Land-use rules sit in SMC 23.42.060, effective January 2018. STRs are allowed in most structures established as dwelling units, but they are prohibited in RVs, tents, garages, boats, floating or on-water and waterfront residences, caretaker’s quarters in commercial or industrial buildings, and live-work units (source: City of Seattle SDCI, retrieved July 2026). Confirm your specific structure qualifies before you list.

Taxes: no separate city tax, but state and county apply

There is no separate City of Seattle short-term rental tax. In June 2018 the City Council repealed Ordinance 125442, which would have imposed a distinct Seattle STR tax (source: City of Seattle FAS, retrieved July 2026). That does not make STR income tax-free. Washington State and county lodging taxes still apply.

Under Washington rules, operators of personal home or short-term rentals (less than 30 days in a row) owe retail sales tax on the rental charge, lodging and convention or trade center taxes depending on location, and retailing B&O tax after any small-business B&O credit; you may need to register with the Department of Revenue (source: Washington State Department of Revenue, retrieved July 2026). The King County convention and trade center tax, effective January 1, 2019, applies to all lodging in the county regardless of the number of units, including short-term and vacation rentals; special hotel or motel and tourism promotion area charges may also apply (source: Washington State Department of Revenue, retrieved July 2026).

For tax purposes, “transient” means a guest provided lodging for less than one month, or less than 30 days in a row if the rental does not start on the first day of the month (source: Washington State Department of Revenue, retrieved July 2026). Combined lodging tax rates vary by exact location and change over time, so do not rely on a single headline percentage. Verify the current combined rate with the WA Department of Revenue rate lookup, and check whether your booking platform already collects and remits any of it on your behalf before you assume you owe it directly. For how STR income interacts with federal treatment, see our explainer on the short-term rental tax loophole; it does not replace Seattle or Washington filing duties.

Platform obligations and the number on your listing

Booking platforms carry their own duties. Short-term rental platforms (network companies, such as the major booking sites) pay the City a fee of $4.00 for each night booked, remitted quarterly by the platforms on January 30, April 30, July 30, and October 30 (source: City of Seattle FAS, retrieved July 2026). This fee is paid to the City by the platforms, not billed directly to you as the operator. Platforms must also submit monthly reports, due the 15th of each month, listing every licensed operator with the listed unit and URL (source: City of Seattle FAS, retrieved July 2026).

On your side, the operator license number, formatted STR-OPLI-##-######, must be posted on all of your short-term rental listings (source: City of Seattle FAS, retrieved July 2026). A missing or wrong number is an easy enforcement target. If you distribute across several channels, keep the number consistent everywhere; see our guide to OTA distribution beyond Airbnb.

Penalties for operating unlicensed

Operating without a required STR license carries a $500 penalty for the first violation and $1,000 penalties for subsequent violations, per the City’s business-regulations page (source: City of Seattle FAS, retrieved July 2026). SMC 6.600 includes further operator requirements, including references to liability insurance; confirm the current minimum and any other conditions directly against the code or the City before you rely on them.

How Seattle compares

Seattle’s model pairs two licenses with a two-unit owner cap anchored to a primary residence. Other cities structure their rules differently, so compare requirements market by market rather than assuming one framework carries over. For a different regulatory shape, see our breakdown of furnished and short-term rentals in Washington, DC. If you size up supply and demand before entering a market, our live STR trackers and operator directory show where regulated markets still leave room.

Key facts (as of July 2026)

• Definition: fewer than 30 consecutive nights (source: City of Seattle FAS, retrieved July 2026).
• Two licenses: a business license tax certificate, then an STR regulatory license at $75 per unit per year (source: City of Seattle FAS, retrieved July 2026).
• Unit cap: up to two owned units; if two, one must be your primary residence (source: City of Seattle FAS, retrieved July 2026).
• Renter exception: Downtown Urban Core units operating as STRs before September 30, 2017 (source: City of Seattle FAS, retrieved July 2026).
• Listing rule: post your STR-OPLI-##-###### number on every listing (source: City of Seattle FAS, retrieved July 2026).
• Platform fee: $4.00 per booked night, paid quarterly (source: City of Seattle FAS, retrieved July 2026).
• City STR tax: none; Ordinance 125442 was repealed in June 2018; state and county lodging taxes apply (source: City of Seattle FAS, retrieved July 2026).
• Penalties: $500 for the first violation, $1,000 for later violations (source: City of Seattle FAS, retrieved July 2026).

Information current as of July 2026; verify before acting.

This article is general information, not legal, tax, or financial advice. Short-term rental rules and tax rates change and depend on your exact address and situation. Confirm every requirement directly with the City of Seattle and the Washington State Department of Revenue, and consult a licensed professional before you operate.