🎯 STRisker: Bulletin - Washington
STRs Face Higher Taxes as Washington Rethinks Tourism Funding
Washington’s 2026 Lodging Tax Shift Signals New Reality for STRs
Short-term rental owners and operators in Washington are getting an early heads-up: starting January 1, 2026, guests staying in vacation rentals across the state will likely pay more in accommodation taxes. Washington’s newly announced lodging tax framework aligns the state with a growing national trend that’s reshaping how tourism and short-term rentals are funded.
Unlike states with a single statewide lodging tax, Washington relies on local jurisdictions to set their own rates. Under the updated framework, combined sales and lodging taxes on accommodations including short-term rentals are expected to increase depending on the city or county.
The policy shift reflects a broader rethink of tourism funding. Across the U.S., accommodation taxes are increasingly being used not just for destination marketing, but for infrastructure, public safety, and visitor-facing services. Short-term rentals, now a core part of the lodging ecosystem, are firmly included in that equation.
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For Washington communities, the additional revenue is earmarked for a mix of tourism promotion areas, law enforcement support, and other local programs that directly or indirectly serve visitors. That’s an important talking point as short-term rentals continue to face scrutiny in many markets. Local officials are positioning the tax changes as a way for tourism including STRs to “pay its way” while supporting community needs.
For hosts, the biggest impact will likely be guest perception and pricing strategy. Higher lodging taxes can influence booking decisions, especially in competitive markets where travelers compare nightly rates closely. Operators may need to be proactive in explaining tax breakdowns to guests or adjusting pricing models to remain attractive while maintaining margins.
While the changes don’t take effect until 2026, the runway gives hosts time to prepare. Monitoring local council discussions, staying connected with STR associations, and reviewing compliance systems early could help operators avoid surprises. As travel demand continues to grow, Washington’s approach suggests that short-term rentals will play an increasingly visible and taxable role in supporting tourism infrastructure statewide.
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