STR Tax Again Under Discussion in Washington State

1/26/2026

Washington state lawmakers are reconsidering House Bill 2559, which would allow cities and counties to impose a 4% tax on short-term rentals to fund affordable housing. The proposal faces strong opposition from homeowners who rely on rental income. Currently, local lodging taxes cap at 2% outside Seattle, with limits on total tax revenue. Debate continues, and no vote has been scheduled.

Washington State Standard (01/20/26) Jake Goldstein-Street