Compliance · 2026
DC's license rules, fines and the hotel tax
Most investors learn too late that a DC license belongs to a person and a homestead. DLCP issues licenses to natural people only, so an LLC or a corporation can't hold one, and it excludes investment properties outright. Eligibility runs through the Homestead Deduction: the home you list has to be the one you claim as your primary residence. That means a rowhouse marketed as “licensed” describes the seller's arrangement, and nothing passes to you at closing; if you won't live there and claim the homestead, current law gives you nothing to apply for. You also have to be eligible for a Certificate of Clean Hands in your own name, so an unpaid District tax bill or fine can stall the license before it starts. The mayor's bill that would open hosting to renters and second homes, B26-0647, was still in committee with no hearing scheduled as of late summer 2026, so price any purchase on today's rules.
The two licenses, the fee and the paperwork
DC splits hosting on one test, your presence during the stay. The short-term rental license covers stays while you live on site, with no annual night count, and one license covers any number of rooms you rent separately. The vacation rental license covers the nights you're away and the guest has the whole place; host both ways and you hold both licenses. Recent DLCP fee schedules put each at about $99 for a two-year term, so confirm the current figure with DLCP before you pay. Nobody inspects the home before the license issues, but you self-certify that it meets the Housing Code and Property Maintenance Code, and you need liability coverage of at least $250,000, through the platform or your own insurer. English basements and other accessory units count as part of your primary residence when you receive the Homestead Deduction on the property, which is why the basement unit under an owner-occupied rowhouse is the District's standard licensed product. Renewals now run through the District's BOSS portal, and a license issued before November 15, 2022 has to be linked to a new account before it can renew.
The 90-night exemption, the records and the fines
The vacation-rental cap is counted across the calendar year, and DLCP's rule is blunt: if an ineligible booking slips through, you and the platform both have to cancel it. There's an exemption few hosts know about. If your employer, or your spouse's or partner's, requires you to work outside the District for more than 90 days in a year, or you're away for serious medical treatment or caring for someone in treatment, you can apply with an affidavit once your vacation-rental license is issued, and DLCP says online requests are reviewed in 2-3 business days. Keep every booking record for two years. Condo and co-op owners attest that their association's documents allow short-term rentals, or they file the association's written permission. The fines climb quickly: the DC Code sets $500 for a host's first violation, $2,000 for a second, and $6,000 plus revocation of the endorsement for a third, while a platform owes $1,000 for each booking transaction that breaks the rules, which is why the platforms check license numbers so closely. DLCP expects more than 5,100 short-term and vacation rentals in the District. A second 2026 bill, Bill 26-757, would treat a guest who stays past the booked checkout as a trespasser; it had its committee hearing on September 23, 2026 and hasn't passed, so put any extension in writing or through the platform.
One lodging tax, and who files it
Because the District is its own state, county and city, you track one lodging tax instead of a stack. Airbnb's DC tax page puts the rate it collects at 15.95%, charged on the listing price plus cleaning and guest fees for reservations of 90 nights or fewer, and it leaves every other obligation with you. The Office of Tax and Revenue's October 2025 notice called that rate a temporary increase running through September 30, 2027, and 2026 budget legislation repeals that end date for the one-point surcharge inside it, so plan on 15.95% staying. On direct bookings from your own website no platform is collecting anything: you register with the Office of Tax and Revenue, charge the guest the tax, and file and remit it yourself, which is the cost side of the direct channel this market rewards. Rental income can also bring the District's unincorporated business franchise tax into play, and a recent host guide notes the D-30 return applies above $12,000 of DC gross income, with a $250 minimum tax. None of this is advice for your situation, so set up your filings with an accountant who handles District lodging and franchise tax before your first direct booking.