Washington D.C. Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Washington D.C. vacation rental property.

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Tax Types

What Taxes Apply to Washington D.C. Short-Term Rentals?

Washington D.C. STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Washington D.C. applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 15.95%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Washington D.C.'s lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 15.95% in Washington D.C.. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While Washington D.C. doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Washington D.C.'s state income tax at 8.5%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Washington D.C.'s average effective property tax rate is 0.85%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Washington D.C.?

Airbnb has agreements to collect and remit taxes in Washington D.C. — but coverage is not always complete.

Airbnb collects Washington D.C.'s state-level lodging tax in most jurisdictions.
In major cities like Washington D.C.: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Washington D.C. tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Washington D.C.?

Yes. Washington D.C. has significant STR regulation. Most jurisdictions require permits and licenses before you can operate.

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate
Zoning compliance certificate
Fire safety inspection certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Washington D.C.

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Washington D.C.

Key tax facts every vacation rental host in Washington D.C. should know.

Transient accommodations tax: 14.95%

State-equivalent income tax: 8.5%

Property tax rate: ~0.85%

STR regulations are strictly enforced

City Breakdown

Lodging Tax Rates by City in Washington D.C.

Combined lodging/occupancy tax rates for major vacation rental markets in Washington D.C..

CityCombined Rate

Washington D.C.

15.95% transient accommodations tax (combined)

15.95%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Washington D.C. Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Washington D.C..

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