A newbie got a question here, so thanks in advance for all answers.
I am curious if rent paid by tenant is subject to sales tax. In other words, when a landlord collects rent, does he/she has to cut part of it for sales tax? I live in Washington Seattle area if that matters.
Nope. Can you imagine, an 8+% rent increase for sales tax? Even in Seattle they haven't applied that yet. LOL
@Steve Vaughan thanks for the info.
We have 50 states and each states have different rules.
I believe some states may collect some type of hotel/occupancy tax if the stay is below 30 days. Something to be wary about.
In my area, depends on type of rental. SF/MF no but it is collected for commercial properties.
In Florida, sales tax is collected if you are renting out seasonally. By the day or week and I believe under 30 days. On top of that, some counties charge an extra percent.
Florida has a hotel tax on any seasonal rental 6 months and under.
One small town I rent in charges income tax on my net income from that town. It's only 1% for in town residents. I'm a non-resident so it's 0.5%. Check your local laws.