Taxes & Fees: Charlotte vs Nashville

What is the short-term rental tax rate in Charlotte?

Hosts must collect a Mecklenburg County room occupancy tax of 8% plus the combined North Carolina sales and use tax on accommodations of 7.25%, for a total of about 15.25% of the gross rental charge. The taxes apply to rentals of fewer than 90 continuous days.

Does Charlotte charge a short-term rental permit fee?

No. Charlotte amended its Unified Development Ordinance in April 2022 to remove short-term-rental-specific regulations, so the City does not currently charge a dedicated STR permit fee. Hosts still must register with Mecklenburg County for occupancy tax and with the NC Department of Revenue for sales tax.

Does Airbnb handle the taxes for me?

Airbnb collects and remits the North Carolina state and local sales tax for Charlotte hosts under NCGS 105-164.4J, and under a voluntary agreement also collects and remits the Mecklenburg occupancy tax. Hosts using other platforms or direct bookings are responsible for collecting and remitting the taxes themselves.

What taxes do I owe on short-term rental income in Nashville?

Nashville STR operators pay a $313 annual permit fee plus a Hotel Occupancy Tax of 6–7% on gross rental receipts plus a $2.50/night flat fee. State sales tax of 9.25% also applies, bringing total lodging taxes to approximately 15–16%.

How much is the short-term rental license fee in Nashville?

Annual Permit Fee: $313. Hotel Occupancy Tax: 6–7% + $2.50/night flat fee. State + Local Sales Tax: 9.25%. Total Lodging Tax Burden: ~15.25–16.25% + $2.50/night.