North Carolina Statewide Rule

North Carolina Short-Term Rental Taxes and Occupancy Fees

Heavy RestrictionsApplies statewide across North Carolina (2026)

Key Facts

State Sales Tax Rate: 4.75% plus local
Stay Threshold: Under 90 days
Authorizing Statute: G.S. 105-164.4
Occupancy Tax Authority: State legislature only

Last verified: September 5, 2026Source: North Carolina General Assembly

Summary

North Carolina imposes statewide sales tax on short-term rental accommodations and authorizes counties and cities to add room occupancy taxes only under specific state enabling legislation.

(b) Tax. - The gross receipts derived from the rental of an accommodation are taxed at the general rate set in G.S. 105-164.4. Gross receipts derived from the rental of an accommodation include the sales price of the rental of the accommodation. The sales price of the rental of an accommodation is determined as if the rental were a rental of tangible personal property. The sales price of the rental of an accommodation made by an accommodation facilitator includes any charges or fees, by whatever name called, charged by the accommodation facilitator to the purchaser of the accommodation that are necessary to complete the rental. The tax is due and payable by the retailer in accordance with G.S. 105-164.16.

Source: North Carolina General AssemblyView official code

Full Breakdown

Under G.S. 105-164.4(a)(3), gross receipts from rentals of accommodations under 90 days are subject to the state's combined general sales and use tax rate of 4.75% plus applicable local sales tax. Rental platforms and hosts must collect and remit this tax to the NC Department of Revenue. Local occupancy taxes (typically 3-6%) require state legislative authorization under G.S. 153A-155 (counties) or G.S. 160A-215 (cities), and cannot be enacted unilaterally by local governments.

Violations & Penalties

Failure to collect and remit state sales tax on short-term rentals exposes hosts to back taxes, penalties of 10-25%, and interest. Operating without registering for a sales tax account is a separate violation enforced by NCDOR.

Frequently Asked Questions

Does Airbnb collect North Carolina sales tax automatically?

Yes. As a marketplace facilitator under G.S. 105-164.4J, Airbnb and similar platforms collect and remit state and local sales tax and authorized occupancy taxes on the host's behalf for bookings made through the platform.

Can a city add a new short-term rental tax without state approval?

No. Under North Carolina's Dillon's Rule framework, occupancy taxes require specific enabling legislation from the General Assembly. Cities cannot create new lodging taxes through local ordinance alone.

Sources

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