Olympia, WA Home Business: Zoning & Home Occupation Permits (2026)

Section 18.04.060(L) of the Olympia Municipal Code governs home occupations in the City of Olympia, Thurston County, Washington. Its stated purpose is to allow a residential structure to be used for a non-residential use that is clearly accessory to the residential use and does not change the neighborhood's residential character. Before both initial occupancy and issuance of any business license, the operator or the operator's agent must certify that the home occupation conforms with the applicable requirements.

The general standards are specific. The occupation must be conducted within the permit holder's principal residence or an accessory structure on the same property, and the permit holder proves residency through evidence such as voter registration, a driver's license or a tax statement and signs a notarized affidavit. Permit holders also sign a notarized affidavit agreeing to City inspection of the residence after reasonable notice. Only family members who reside in the residence can participate, and the permit lists each resident employed by the business. A home occupation cannot occupy more than 25 percent of the total floor area of the dwelling or 500 square feet per dwelling unit, whichever is less. Properties abutting the west side of the 300 and 400 blocks of West Bay Drive Northwest are held to 50 percent or 1,500 square feet, whichever is less.

The residential character of the lot must be maintained, a carport cannot be used except for parking, and no structural alteration or exterior modification is allowed to accommodate the occupation. A permit issued to one resident is not transferable and is not valid at any other address. Every home occupation must register as a business under Chapter 5.04 OMC and is subject to the Business and Occupation Tax. Family child care homes, adult day care homes, elder care homes, short-term rental homestays and bed and breakfast houses are exempt from the floor area limit.