Rental Tax Collection and Remittance in the District of Columbia
The city sales tax varies according to what service or goods are sold. Washington, D.C. charges the city Sales Tax for short term rentals. There is a specific rate just for short term rentals, currently 14.95%.
Do I Need To Pay?
If you rent your vacation property short term in DC, then the taxes will be payable. However, some third party payers already will collect these taxes on your behalf.
If you use any online service that charges payments on your behalf you should be good. The online marketplace service that markets your vacation property typically collects guest payments on your behalf. If they do not collect guest payments and merely provide a guest referral, then you would likely be responsible for the taxes. Check with the company if you are not sure.
Exempt Rental Activity – Do not submit taxes
AirbnbBooking.comOther booking sites that charge guest on your behalf
What if you obtain rentals on your own and you charge the guest directly? Then you would need to charge the guest the taxes. Also, you would need to register and submit the payments to the District. These are the situations where this might occur:
- The guest is a friend.
- A guest rented your property from an ad.
- Some guests rented your property from an online site that charges only subscription fees for your listing (referral site).
- Guest rented the property from your own website.
City Registration/License
There is no specific licensing or registration required for short term rentals. A sales and use tax return would need to be filed if you need to submit your own use taxes.
Cities Tax Rate
Sales Tax (Transient Rentals): 14.95%
How Do I Pay?
Register and file a tax return and pay all at this site: MyTaxDC Online. There is also a useful guide available, “How to File a Sales and Use Tax Return” to assist you in filing your rental use taxes.
