Taxes & Fees: Federal Way vs Seattle
How do taxes & fees rules compare between Federal Way, WA and Seattle, WA?
Federal Way and Seattle have similar restriction levels.
Federal Way, WA
King County
Federal Way STR operators collect Washington retail sales tax, King County lodging tax, and state and local lodging taxes. Combined rates typically run around 12 to 13 percent, remitted through WA DOR.
View full Federal Way rules →Seattle, WA
King County
Seattle STR hosts must collect Washington State lodging taxes under RCW 67.28. Seattle imposes a Business License Tax (based on gross receipts). The $75/year per-unit STR regulatory license fee applies separately.
View full Seattle rules →Key Facts Comparison
| Fact | Federal Way | Seattle |
|---|---|---|
| Combined Tax Rate | Approx 12 to 13 percent | - |
| State Sales Tax | 6.5 percent plus local | - |
| Lodging Tax | King County and state | - |
| Remittance | Washington DOR | - |
| Record Keeping | Five years | - |
| State Lodging Tax | - | RCW 67.28 (collected by platforms) |
| City B&O Tax | - | Seattle B&O Tax on gross receipts |
| STR License Fee | - | $75/unit/year |
| Business License | - | Also required — filelocal-wa.gov |
Highlighted rows indicate differences between cities.
Federal Way FAQ
What taxes apply to my Federal Way Airbnb?
Washington retail sales tax, state lodging tax, and King County lodging taxes apply to rentals under 30 days, typically totaling around 12 to 13 percent.
Does Airbnb collect all the taxes?
Airbnb collects many Washington state-level taxes automatically, but operators should verify and remit any remaining local taxes through the Department of Revenue.
Seattle FAQ
What taxes do I owe on short-term rental income in Seattle?
Seattle STR hosts must collect Washington State lodging taxes under RCW 67.28. Seattle imposes a Business License Tax (based on gross receipts). The $75/year per-unit STR regulatory license fee applies separately.
How much is the short-term rental license fee in Seattle?
State Lodging Tax: RCW 67.28 (collected by platforms). City B&O Tax: Seattle B&O Tax on gross receipts. STR License Fee: $75/unit/year. Business License: Also required — filelocal-wa.gov.
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