Any help with Sales and Occupancy Taxes in Washington?

Level 1
Port Townsend, WA

Any help with Sales and Occupancy Taxes in Washington?

Does anyone have any experience with filing B&O Taxes in the State of Washington and reconciling Airbnb's collection and payment of Sales Tax and Occupancy Taxes. If I declare the income, they calculate the sales tax and occupancy taxes and and want payment.


Thank you

1 Best Answer
Level 3
Seattle, WA

I have no idea why no one has really written the steps on here. It's pretty simple and it's sad that no one is willing to spend 2 minutes to teach everyone else the simple steps.


Since Airbnb collects the taxes, we select:


Step 1: "Select Taxes"


Business and Occupation > Retailing

Sales and Use > Retail Sales

Location Based Taxes > Local City and/or County Sales Tax


Step 2: "Business and Occupation"


Enter the full gross amount you have in the Airbnb portal then click Next.


Step 3: "State Sales and Use"


The "Gross Amount" should be the exact same amount entered in step 2.

Then, click on "Add Deduction", select "Gross Sales Collected by Facilitator" and enter the same exact gross amount and click "Ok".


Step 4: "Local Sales"


Select the location if required and leave everything as is (0 taxable amount).


Step 5: "Summary"


Enter your details and leave the option for "Do you need to file a Buyers Sales and Use Preference Addendum?" as "NO"


Step 6: "Return Totals"



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35 Replies 35

Question -- we are required for quarterly submissions.  Do we specify gross amount received per quarter?

Thank you so much!


This is really helpful! We are new hosts, and I am trying to understand basic tax-related terminology. When you say, "Enter the full gross amount" what do you mean by that? Where can I find that amount? I am guessing in my hosting dashboard. Does "full gross amount" equal "payout"? Thank you for clarifying this for me. I'm a details person and I just want to make sure I'm doing it right. 

For 2024, I am providing a process update for 2023 earnings with images. I come here to this answer every year and have issues following it and I always this year is it still the same?


Here goes:


1. Upload your earnings file that you received from Airbnb, BUT if it's a PDF it will not be uploaded. In my case all I had was a PDF so I ended up not uploading anything. 

2. Make sure the right boxes are checked as below, click NEXT at bottom right of page.



3. Business & Occupation/Retailing

Add your gross earnings in the GROSS AMOUNT box as shown below.


Do not click on blue ADD DEDUCTION button. You don't need to. The Total Business & Occupation gets autofilled in so now just scroll to the bottom and click the blue NEXT button on the bottom right.

4. State Sales and Use/Sales, Retail Sales and Use Credits

Click the blue ADD DEDUCTION button located on the same line as RETAIL SALES. In the image below, I have already added the deduction which is why the words got replaced with a number. 



5. Select Deductions for Retail Sales

Now a pop up box comes up. Here you should enter your Gross Earnings in the Gross Sales Collected by Facilitator box. This is the same number as you entered in Step 3. Ciick the blue OK button in the bottom right.


6. State Sales and Use/Sales, Retail Sales and Use Credits

This takes you back to the previous page, all you do is click the blue button NEXT in the bottom right.


7.  Local City and/or County Sales Tax

On this page, do nothing, just click the blue NEXT button at the bottom right.


8. Filing Category Summary/Deductions/Credits/Submitter Information

This takes you to the final overview page. Add your info then click the blue SUBMIT button at the bottom right. 




Thank you I was great info easy to follow!