Wilmington, NC Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 3% of gross rental receipts
- Applies to
- hotels, motels, inns, tourist camps, similar lodging
- Prerequisite
- New Hanover County Tourism Development Authority must exist
- Collected by
- New Hanover County, not the city
- Earliest effective date
- February 1, 2003
- Nonprofit exemption
- charitable/educational/religious lodging exempt
Summary
Wilmington may levy a 3% local occupancy tax on hotel, motel, and similar-lodging rentals under its Charter's Article XVIII, once New Hanover County creates a Tourism Development Authority. The city council sets the rate by resolution after a public hearing, and New Hanover County collects and administers the tax alongside the state's own room tax.
If New Hanover County has created a Tourism Development Authority pursuant to Part VIII of Chapter 908 of the 1983 Session Laws, as amended, the Wilmington City Council may, by resolution, levy a local occupancy tax of three percent (3%) of the gross receipts derived from the rental of any room, lodging, or accommodation furnished by a hotel, motel, inn, tourist camp, or similar place within the city that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3). This tax is in addition to any State or local sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose.
Full Breakdown
The Wilmington City Charter's Article XVIII, Sec. S. 4(a)(3). The tax stacks on top of any state or local sales tax and does not reach accommodations a nonprofit charitable, educational, or religious group furnishes in pursuit of its nonprofit mission. Before the council can act, it must hold a public hearing with at least 15 days' public notice detailing the proposed uses of the proceeds, then forward the adopted resolution to the New Hanover County Board of Commissioners and county manager. The tax could take effect no earlier than February 1, 2003, and Sec.
S. 160A-215. Sec. 1(d) directs the net proceeds into a county-held convention center account: if Wilmington has not lined up complete financing and development arrangements for a convention center within three years of the first levy, the county diverts the account to the area's Tourism Development Authority to promote travel and tourism instead; if Wilmington does complete those arrangements in time, the funds flow to the city for the convention center's construction, financing, and operation. Sec. 1(e) requires an annual, audited public report on the tax's receipts and spending.
Violations & Fines
The tax is administered as a straight revenue measure rather than a code-enforcement scheme: Sec. 1(b) applies the collection, administration, and penalty provisions of G.S. 160A-215 to any occupancy tax levied under this section, so a lodging operator who fails to remit the tax faces the same penalties, interest, and collection remedies the state statute imposes on delinquent local occupancy taxes. Each entity handling the proceeds must also publish an annual audited report or risk noncompliance with Sec. 1(e).
Frequently Asked Questions
What is Wilmington's hotel occupancy tax rate?
Does the city or the county collect the occupancy tax?
Where does the occupancy tax money go?
Are short-term rental platforms like Airbnb covered by this tax?
Sources & Official References
Other rules in Wilmington
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