Washington Short-Term Rental Regulations
| Permit | ✓ Required — Basic Business License with Short-Term Rental Endorsement ($99) — See below for other permit types |
| Primary Residence | ✓ Required |
| Annual Day Limit | 90 days–unlimited (varies by permit type) |
| Tax Rate | 20.4% |
| Max Penalty | $6,000 per violation |
| Insurance | $500,000 liability required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
- Basic Business License with Short-Term Rental Endorsement — Host present on property; rent a room or portion of your home; no annual night limit
- Basic Business License with Short-Term Rental: Vacation Rental Endorsement — Host absent; rent entire home; limited to 90 nights per year
Basic Business License with Short-Term Rental Endorsement
| Fee | Amount |
|---|---|
| Initial cost | $99 |
| Renewal | $99 / 2 years |
The property must be your primary residence. This means investment properties are not eligible for this permit type.
Basic Business License with Short-Term Rental: Vacation Rental Endorsement
| Fee | Amount |
|---|---|
| Initial cost | $99 |
| Renewal | $99 / 2 years |
The property must be your primary residence. This means investment properties are not eligible for this permit type.
Application Process
Apply online via DC Short-Term Rental Licensing Platform; requires Clean Hands Certificate (within 30 days), proof of $500,000+ liability insurance, and HOA/condo attestation form if applicable
Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| DC Transient Lodging Tax (hotel accommodations) | 15.95% | DC Office of Tax and Revenue |
| DC Gross Receipts Tax on Transient Lodgings | 4.45% | DC Office of Tax and Revenue |
Combined rate: 20.4% of gross rental income.
Collection: Booking services collect and remit on behalf of hosts
Filing: Monthly or quarterly; due by 20th of month following end of reporting period; file electronically via MyTax.DC.gov
Rental Limits
Washington annual day limit: 90 days–unlimited (varies by permit type). Each individual stay must be 30 days or fewer per stay.
Zoning & Restrictions
Allowed in any neighborhood or zone with valid license; must be owner's primary residence; investment properties and corporate-owned properties not eligible
Insurance & Safety
Insurance
Operators must maintain at least $500,000 in liability insurance covering the property's use as a short-term rental.
Safety & Operating Requirements
- Unobstructed egress from the rental property
- Working smoke and carbon monoxide detectors
- Portable fire extinguisher
- 24-hour accessible phone number for emergencies
- Post Short-Term Rental or Vacation Rental License conspicuously inside property
- Records of each booking maintained for 2 years
Penalties for Non-Compliance
Hosts: $500 (first violation), $2,000 (second violation), $6,000 (third violation); Booking services: $1,000 per violation
Platform Requirements
Booking services must display license endorsement numbers in listings, refuse bookings for suspended licenses, submit monthly transaction reports, retain 2-year records, and collect/remit transient lodging taxes
Compliance Checklist
Follow these steps to legally operate a short-term rental in Washington:
- Determine your permit type. Washington has 2 permit types. Identify which applies to your property (Basic Business License with Short-Term Rental Endorsement, Basic Business License with Short-Term Rental: Vacation Rental Endorsement).
- Meet safety requirements. Unobstructed egress from the rental property. Working smoke and carbon monoxide detectors. Portable fire extinguisher. 24-hour accessible phone number for emergencies. Post Short-Term Rental or Vacation Rental License conspicuously inside property. Records of each booking maintained for 2 years.
- Obtain liability insurance. $500,000 minimum.
- Apply for your STR permit. Submit application + $99 fee. See permit types above to determine which applies.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 20.4% on all bookings.
- Renew every 2 years. $99 renewal fee.
Official Sources
- Operating a Short-Term Rental in the District of Columbia - DC Department of Licensing and Consumer Protection
- Chapter 2. Short-term Rental Regulation - DC Law Library
- D.C. Law 22-307. Short-Term Rental Regulation Act of 2018 - DC Law Library
- § 30-201.02. Restrictions on Short-Term Rentals - DC Law Library
- OTR Tax Notice 2023-01: Sales and Use Tax Rate Increase on Transient Accommodations - DC Office of Tax and Revenue
- § 47-2202.01. Tax on Gross Receipts for Transient Lodgings or Accommodations - DC Law Library