Leavenworth Short-Term Rental Regulations

Last verified: 2026-07-02
TL;DR
Leavenworth requires an STR permit — 2 types available (fees from $115-$300) — see below for eligibility by type. Combined tax rate is 11.60%. No annual day limit, but each stay must be less than 30 days.
⚠ Before you rely on the summary
The number of STR permits is capped. The permit pool may be full and new permits limited, waitlisted, or currently unavailable — new operators may not be able to obtain one. Confirm current availability (and the rules for your specific zone/permit type) before relying on the figures below.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Conditional Use Permit (Bed and Breakfast) plus city business license ($1,675) — See below for other permit types
Primary Residence Varies by permit type
Annual Day Limit No limit — less than 30 days
Tax Rate 11.60%
Max Penalty $2,000 per violation
Insurance $1,000,000 liability required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Which permit type applies to you?

Conditional Use Permit (Bed and Breakfast) plus city business license

FeeAmount
Initial cost$1,675
Renewal$125

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Commercial-zone short-term rental with city business license

FeeAmount
Initial cost$115-$300
Renewal$115-$300/year

This permit type does not require primary residence. Zoning restriction: Whole-home STRs prohibited in residential zones; permitted only in commercial zoning districts.

Application Process

Reviewed and authorized through the Building Permit, Home Occupancy or Conditional Use Permit process

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

TaxRateAuthority
State and local retail sales tax 8.60% Washington Department of Revenue
Special hotel/motel (lodging) tax 3% Washington Department of Revenue

Combined rate: 11.60% of gross rental income.

Collection: Collected from the customer and reported by the lodging business on the excise tax return

Rental Limits

Leavenworth does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 days.

Occupancy & Density Limits

Two people per bedroom overnight, excluding children under age six

Zoning & Restrictions

Owner-occupied: Permitted in residential zoning districts with an approved Conditional Use Permit; prohibited on lots under 6,000 sq ft; capped at 4% of residential housing stock. Commercial-zone short-term rental with city business license: Whole-home STRs prohibited in residential zones; permitted only in commercial zoning districts

Insurance & Safety

Insurance

Operators must maintain at least $1,000,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

Penalties for Non-Compliance

First violation: $2,000 monetary penalty; second violation within 24 months: revocation of the B&B conditional use permit

Platform Requirements

Advertisements must include the state-issued business license number and note the city endorsement

Compliance Checklist

Follow these steps to legally operate a short-term rental in Leavenworth:

  1. Determine your permit type. Leavenworth has 2 permit types. Identify which applies to your property (Conditional Use Permit (Bed and Breakfast) plus city business license, Commercial-zone short-term rental with city business license).
  2. Meet safety requirements. Meet and maintain all applicable health, fire safety, and building codes. Annual building, fire and life safety inspection before business license issuance. Fire sprinkler systems required for three or more guest rooms. Written management plan with emergency exit routes and 24/7 contact information. Legible sign at front door listing max occupants, vehicles, and contact person.
  3. Obtain liability insurance. $1,000,000 minimum.
  4. Apply for your STR permit. Submit application. Fees vary by type: Conditional Use Permit (Bed and Breakfast) plus city business license $1,675; Commercial-zone short-term rental with city business license $115-$300. See permit types above to determine which applies.
  5. Register for tax accounts. Set up lodging tax accounts with Washington Department of Revenue.
  6. Display your permit number. Include your permit/license number in all listings and advertisements.
  7. Collect and remit taxes. 11.60% on all bookings.
  8. Renew as required. Renewal fees vary by permit type ($125 / $115-$300/year). See permit types above.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Leavenworth?
Yes. Leavenworth requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.
Are there major restrictions on short-term rentals in Leavenworth?
Yes — Commercial-zone short-term rental with city business license: Whole-home STRs prohibited in residential zones; permitted only in commercial zoning districts. Review the full rules above before listing.
How much does a short-term rental permit cost in Leavenworth?
A short-term rental permit in Leavenworth costs $1,675.
Does Leavenworth require a short-term rental to be your primary residence?
It depends on the permit type. At least one Leavenworth permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.
How many days a year can you short-term rent in Leavenworth?
Leavenworth does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Leavenworth?
Short-term rental stays in Leavenworth are subject to a combined 11.60% in lodging taxes. This combines 8.60% State and local retail sales tax + 3% Special hotel/motel (lodging) tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Leavenworth?
Operating without a permit can cost up to $2,000.

Official Sources

  1. Chapter 18.52 CONDITIONAL USES - Leavenworth Municipal Code
  2. City of Leavenworth Community Development Administrative Interpretation 2023-01 Short-Term Rentals
  3. Special hotel/motel tax | Washington Department of Revenue
  4. Leavenworth Municipal Code §18.52.120 — Conditional use permit – Bed and breakfast (eCode360)