Short-Term Rental Laws in Leavenworth, Washington

Leavenworth caps total STR licenses citywide and operates a license-allocation lottery when the cap is hit — among the tightest STR frameworks in Washington. The 2022 ordinance was driven by housing-supply pressure on the town's small permanent population (~2,200) against an enormous STR-driven tourist economy (Oktoberfest, Christkindlmarkt, Bavarian Village). The city also tightly regulates signage, parking, and Bavarian-themed exterior compliance for STR properties in the village commercial core.

Leavenworth caps STR licenses citywide; new licenses issue via lottery when openings come available. Allowed zones include Tourist Commercial, Mixed-Use Village, and select Residential zones — the binding gate is the citywide cap, not zoning. Chelan County (unincorporated areas around Leavenworth — Plain, Lake Wenatchee, Peshastin) operates a parallel STR licensing system with its own cap and 250 ft-from-other-STR distance buffer. Confirm whether your parcel is inside Leavenworth city limits vs unincorporated Chelan County before any offer.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Leavenworth city + Chelan County jointly enforce with platform-data cross-checks. Operating without a license: civil penalty + back-TPA/lodging-tax assessment + immediate cease-rental order. Annual renewal includes safety re-inspection and verification that the property remains in compliance with the village's Bavarian-themed exterior code. Persistent noise/nuisance complaints can trigger license revocation and the freed slot reverts to the lottery pool.

Combined short-term lodging tax in Leavenworth is approximately 13.600% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Washington State sales tax 6.5% + Chelan County lodging tax 2% + Leavenworth city sales/lodging + Tourism Promotion Area assessment — combined ~13.6% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.