Raleigh, NC Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- STR tax compliance duty
- UDO Sec. 6.4.6.E
- City occupancy tax rate
- 3% of gross room-rental receipts. City Code § 2-2080
- Return due date
- 15th of each month, prior month's receipts
- Collector discount
- 1% of tax collected, retained by operator
- Late-filing penalty
- $10 per day
- Nonpayment penalty
- 5% of tax due, plus 5%/month additional
Summary
Raleigh's UDO requires every short-term rental operator to pay applicable occupancy taxes, which the City Code sets at 3% of gross room-rental receipts under its transient occupancy tax article, collected monthly with steep penalties for late filing, nonpayment, or willful evasion.
Short term rental operators shall comply with all applicable State and local laws...including those relating to fire and building codes, smoke detecting and carbon monoxide detecting equipment, housing codes, and payment of taxes to appropriate governmental entities, including occupancy taxes. [UDO Sec. 6.4.6.E] ... Sec. 2-2080. IMPOSITION AND LEVY OF TAX. The City hereby imposes and levies a tax of three (3) per cent of the gross receipts...derived from the rental of any sleeping room or lodging furnished in any hotel, motel, or inn located in the City. The tax shall not apply...to any room or rooms...supplied to the same person for a period of ninety (90) continuous days or more.
Full Breakdown
UDO Sec. derived from the rental of any sleeping room or lodging," with an exemption for stays of 90 continuous days or more. Under § 2-2081, operators must file a monthly return with the City Revenue Collector by the 15th of each month covering the prior month's collections, and may deduct a 1% collection-expense discount from what they remit. Section 2-2082 lets an operator apply for a deduction or refund once a guest's stay crosses the 90-day exemption threshold. The City retains 3% of gross tax proceeds for its own administrative and collection costs under § 2-2086, and distributes the net proceeds as directed by the 1985 Session Law authorizing the tax and by the City Council's approved budget under § 2-2087.
This occupancy tax is separate from Wake County's own room occupancy tax, so a short-term rental operator inside Raleigh is subject to both layers of tax administration referenced generally by the UDO's compliance requirement.
Violations & Fines
Failing to file the monthly return draws a $10-per-day penalty under § 2-2083; if the return or tax remains unpaid 30 days past the deadline, § 2-2084 adds a 5% penalty on the tax due, plus another 5% for every additional month it stays unpaid. Willfully attempting to evade the tax or failing to file is a misdemeanor under § 2-2085, punishable by a fine up to $1,000, up to 6 months imprisonment, or both.
Frequently Asked Questions
Do Raleigh Airbnb hosts have to collect occupancy tax?
When is the occupancy tax return due?
What happens if I don't pay the occupancy tax?
Sources & Official References
Other rules in Raleigh
How Raleigh compares: Cities with the Highest Short-Term Rental Taxes·Compare Raleigh to another location·View the North Carolina short-term rentals overview
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