Island County, WA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Additional STR tax rate
- 2% (Sec 3.06A.010)
- Combined tax cap
- 12% total (Sec 3.06A.030)
- Taxable booking length
- Under 1 continuous month
- Collecting agency
- WA Dept. of Revenue
- Penalty
- Up to $1,000 fine / 90 days jail
- Revenue fund
- Joint Tourism Promotion Fund
Summary
Short-term stays booked in unincorporated Island County, including vacation rentals treated as a license to use real property for under one month, owe an additional 2 percent lodging excise tax under Code Chapter 3.06A, on top of the county's base 2 percent tax, collected by the Washington Department of Revenue and capped by state law.
Pursuant to RCW 67.28.181, there is hereby levied a special excise tax of two (2) percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The tax imposed under Chapter 82.08 RCW applies to the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. It shall be presumed that the occupancy of real property for a continuous period of one (1) month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. ... Every person convicted of a violation of any provision of this chapter shall be punished by a fine in a sum not to exceed one thousand dollars ($1,000.00) or by imprisonment for a term not to exceed ninety (90) days or by both such fine and imprisonment. Each day of violation shall be considered a separate offense.
Full Breakdown
010). As with the county's base lodging tax, the code presumes a continuous occupancy of one month or more is a rental or lease rather than a taxable license, so the tax reaches short-term bookings, the category most vacation and short-term rental stays fall into. 14 RCW, would push the total past 12 percent. 060). 040). Operators inside Oak Harbor, Coupeville or Langley remit under those cities' own lodging tax codes; this chapter governs only unincorporated Island County short-term rentals.
Violations & Fines
Section 3.06A.070 makes it unlawful to violate or fail to comply with any provision of the additional lodging tax chapter. A conviction is punishable by a fine of up to $1,000, imprisonment for up to 90 days, or both, and each day a short-term rental operator remains out of compliance, such as by failing to remit the tax, counts as a separate offense.
Frequently Asked Questions
Does Island County tax short-term rental bookings separately from hotels?
Is there a cap on how much lodging tax can be stacked on a short-term rental?
What happens if a short-term rental host doesn't remit the tax?
Where does the extra 2 percent short-term rental tax money go?
Sources & Official References
Other rules in Island County
How Island County compares: Cities with the Highest Short-Term Rental Taxes·Compare Island County to another location·View the Washington short-term rentals overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.