Short-Term Rental Tax in North Carolina (NC)
The state-level tax rate on short-term rentals in North Carolina is 4.8% , consisting of 4.8% sales tax and 0.0% lodging tax. North Carolina applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Asheville reaches 12.5%. STR operators must register with the state. North Carolina charges a 4.75% state sales tax on short-term rentals. No state lodging tax, but counties impose a room occupancy tax of 3-6%. STR operators must collect and remit local occupancy taxes separately in many counties.
Annual Tax Estimate for North Carolina
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Asheville).
| Nightly Rate | Gross Revenue | State Tax (4.8%) | Asheville Tax (12.5%) |
|---|---|---|---|
| $100.00/night | $23,700 | $1,126 | $2,963 |
| $150.00/night | $35,550 | $1,689 | $4,444 |
| $200.00/night | $47,400 | $2,252 | $5,925 |
| $300.00/night | $71,100 | $3,377 | $8,888 |
| $500.00/night | $118,500 | $5,629 | $14,813 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in North Carolina
Local taxes significantly impact the total STR tax burden in North Carolina. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 12.5% in Asheville.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Asheville | 7.8% | 12.5% | $25.00 | High | Buncombe County 6% occupancy tax + 1.75% sales tax. STR permit required. |
| Outer Banks | 6.8% | 11.5% | $23.00 | Moderate | Dare County 6% occupancy tax + 0.75% sales tax. Very active vacation rental market. |
| Wilmington/Wrightsville Beach | 6.0% | 10.8% | $21.50 | Moderate | New Hanover County 6% occupancy tax. |
| Charlotte | 6.0% | 10.8% | $21.50 | Moderate | Mecklenburg County 6% room occupancy tax. |
How North Carolina Compares to Other States
Below is a comparison of North Carolina with five states that have similar state-level STR tax rates. This comparison helps illustrate where North Carolina stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| North Carolina (NC) | 4.8% | 4.8% | 0.0% | Yes | Required |
| Utah (UT) | 4.8% | 4.8% | 0.0% | Yes | Required |
| New Mexico (NM) | 5.0% | 5.0% | 0.0% | Yes | Required |
| Oklahoma (OK) | 4.5% | 4.5% | 0.0% | Yes | Required |
| Wisconsin (WI) | 5.0% | 5.0% | 0.0% | Yes | Required |
| Virginia (VA) | 4.3% | 4.3% | 0.0% | Yes | Required |
Frequently Asked Questions About North Carolina STR Taxes
What is the short-term rental tax rate in North Carolina in 2026?
The state-level tax rate on short-term rentals in North Carolina is 4.8%, consisting of 4.8% sales tax and 0.0% lodging tax. Local taxes can bring the total to 12.5% in cities like Asheville. At $200/night with 65% occupancy, the state-level tax alone is approximately $2,252 per year.
Does Airbnb collect STR taxes in North Carolina?
Yes. Airbnb, Vrbo collect state sales tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in North Carolina?
Yes. North Carolina requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in North Carolina also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Asheville, North Carolina?
The total combined tax rate in Asheville is 12.5%, which includes the 4.8% state rate plus 7.8% in local taxes. Buncombe County 6% occupancy tax + 1.75% sales tax. STR permit required. At $200/night with 65% occupancy, this amounts to approximately $5,925 per year in taxes.
How much will I owe in STR taxes in North Carolina?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (4.8%), a property earning $200/night with 65% occupancy would owe approximately $2,252/year in state taxes alone. In Asheville, the total tax at the same rate would be approximately $5,925/year. Use our STR tax calculator for a customized estimate.
Calculate Your North Carolina STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in North Carolina. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.