Washington, DC Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Transient Tax
- 15.95%
- Tax Period
- Through March 30, 2027
- License Fee
- $104.50 (2-year)
- Insurance Required
- $250,000 liability
- Tax Authority
- OTR
Summary
DC imposes a 15.95% transient accommodations tax on all short-term rental stays, effective through March 30, 2027. Hosts must collect and remit this tax. The two-year STR license costs $104.50 through DLCP.
For the purposes of this subchapter, the term:
(1) "Booking service" means any person or entity that facilitates short-term rental reservations and collects payment for lodging in a short-term rental. A booking service shall be a room remarketer within the meaning of § 47-2001(o-1).
(2) "Department" means the Department of Licensing and Consumer Protection or its successor agency.
(3) "Host" means a natural person who uses a booking service to provide a short-term rental to a transient guest. A host shall be a vendor within the meaning of §§ 47-2001(w) and 47-2201(g).
(4) "Primary residence" means the property is eligible for the homestead deduction pursuant to § 47-850.
(5) "Short-term rental" means paid lodging for transient guests with the host present, unless it is a vacation rental. A short-term rental is not a hotel, inn, motel, boarding house, rooming house, or bed and breakfast. A short-term rental operates within a portion of the host's residential property, unless it is a vacation rental.
(6) "Vacation rental" means a short-term rental that operates within a host's residential property wherein a transient guest has exclusive use of the host's property during the transient guest's stay and the host is not present on the premises. A vacation rental is subject to additional restrictions, including § 30-201.06(e).
Full Breakdown
All short-term rental hosts in DC must collect and remit the 15.95% transient accommodations tax on gross rental receipts, effective April 1, 2023 through March 30, 2027. This rate applies to all lodging stays under 90 consecutive days. Platforms like Airbnb and VRBO may collect and remit on behalf of hosts, but hosts remain ultimately responsible for tax compliance. The STR license fee is $104.50 for a two-year period ($70 processing + $25 endorsement + 10% technology surcharge). Hosts must also maintain $250,000 minimum liability insurance, which is an additional ongoing cost. DC's Office of Tax and Revenue (OTR) administers the transient tax.
Violations & Fines
Failure to collect or remit the transient accommodations tax may result in back taxes, interest, and penalties assessed by OTR. Operating without a license: fines starting at $250.
Frequently Asked Questions
What taxes do I owe on short-term rental income in Washington?
How much is the short-term rental license fee in Washington?
Sources & Official References
Other rules in Washington
How Washington compares: Cities with the Highest Short-Term Rental Taxes·Compare Washington to another location·View the District of Columbia short-term rentals overview
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