North Carolina Short-Term Rental Taxes and Occupancy Fees

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.

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.