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
Level 4
Seattle, WA

I have the same question. I live in Seattle. Would love to see other hosts in the area share their experiences.

I believe it is transient lodging which is under retail sales? I may be confused but I do remember finding that out last year from the DOR phone help.

The WA DOR were very helpful.

In order to account for the taxes AirBnB aready paid do this:

On the State Sales & Use screen under Retail Sales enter your gross sales. Then click the Total Deduction button just the right of where you entered your gross sales number. Go all the way to the bottom of the screen and click OTHER and enter your Gross Sales again. In the box that appears below type "AirBnB pay taxes". That is it.

This was very helpful. I filed my taxes for 2016 Q4 & 2017 Q1. However, DOR informed me that AirBNB collects sales tax, but we owe B&O tax still.


Any thoughts?

Level 2
Washington, United States

Thanks for the information.  So if I take in say $25,000 in a year, and airbnb pays $2500 Occupancy tax, do I owe anything more to the state or San Juan County?

I also got a confirmation from the Washington State Dept. of Revenue on this procedure.


See here:

Forgive me for asking - We are just begining this adventure - Is a business license needed?

Thank you.

Yes. you need a business license for WA state and may need one for Silverdale

Level 2
Bellingham, WA

I can not figure out how to file my WA DOR taxes. Airbnb paid on my behalf and I understand that I have to file using AirBnB WA UBI which is 6033116838. But how do you do that? step-by-step.


I have the same questions as a new host.  Looking for someone in unincorporated county in WA state to help explain the tax reporting responsibility. 

Level 2
Washington, United States

I have the same question, not the answer.  I am in Bellingham and the San Juan Islands.  Will my accountant know the answer?

I have a similar question - I pay annual taxes on rentals and on my lavender business. Where do I find how much Airbnb paid to the State of Washington so I can pay the difference. I believe VRBO does the same thing but I don't find any statement of taxes paid nor have I received anything official from Airbnb.

Level 2
Seattle, WA

Just received this email today:


"An “Other” deduction was taken from Retailing Business and Occupation (B&O) tax stating “AirBNB collects and pays”. AirBNB is responsible for paying retail sales tax on your sales. You are responsible for paying the retailing B&O tax. The deduction has been removed from Retailing B&O."

Hi, I'm getting an error when I try to file because I listed my gross earning for State taxes and a deduction for the same amount... so it shows a difference between State and Local taxes filed. But there's no place to put a deduction for local taxes. Any ideas on how to make the difference between those zero? thanks!