LicensedRental

Macon County, North Carolina

Highlands, NC vacation rental requirements

Highlands allows short-term rentals only in its R-3 and business districts. Rentals in R-1 and R-2 that were operating in September 2022 can continue only until September 15, 2027. Every rental must follow town occupancy, parking, and trash rules and give guests the town’s contract addendum.

Checked against official sources November 6, 2026

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Where allowed
R-3, B-1, B-2, B-3, B-4
Not in R-1, R-2, or GI.Source
R-1 and R-2 rentals
Must stop after September 15, 2027
Only those operating on September 15, 2022 may run until then.Source
Guests
2 per bedroom + 2
No more than 12 on town sewer; bedrooms capped by the septic permit or tax card.Source
Taxes
6.75% sales tax + 3% county occupancy tax
Ask whether Highlands adds its own.Source

The Highlands rules don’t require a separate rental permit, but zoning violations are enforced under the UDO’s penalties.

Your licensing checklist

In order: the state, the county, then the town.

State of North Carolina

  1. Know who owes the tax

    Whoever collects the rent reports the sales and occupancy tax: the platform, your rental agency, or you. Airbnb collects state and county sales tax and all local occupancy taxes on its bookings. If guests pay you directly, register with the Department of Revenue for sales tax and with your county or town for occupancy tax.Source

    NCDOR business registration →

  2. Use a written vacation rental agreement

    The Vacation Rental Act covers owners and agents renting for vacation stays under 90 days. Have the guest accept a written agreement with the required notices, hold advance payments in a trust account, and keep the home fit and habitable with working smoke and carbon monoxide alarms.Source

  3. Check your zoning

    Towns can’t require you to register a rental, but they can limit short-term rentals to certain zoning districts, require a zoning permit, and set parking, trash, and safety standards. Pick your area for the local rules.Source

Macon County, North Carolina

  1. Register with Macon County

    Every rental registers for the county room occupancy tax and reports monthly by the 20th. Rentals inside Franklin also register and report to the town.Source

  2. Then your town or area

    Zoning rules for short-term rentals are set by each town, and by the county outside town limits. Pick your area.

Town of Highlands

  1. Check your zoning district

    Short-term rentals are a limited use in R-3 and the B-1 to B-4 business districts. If you’re buying in R-1 or R-2, plan on no short-term rental use after September 15, 2027.Source

  2. Use the town addendum

    Every rental contract needs the town’s addendum, and the renter must sign that they received it before check-in. Only one rental contract can cover the home at a time.Source

  3. Post your contact and follow the house rules

    Post the name and phone number of the owner or agent inside near the main entrance, and answer complaints any time the home is rented. Guests park only in designated spaces, and trash goes bagged into town-approved bins.Source

  4. Taxes on each stay

    Stays under 90 days owe 6.75% sales tax plus the local occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with the Department of Revenue. Macon County’s 3% room occupancy tax applies; file it with Macon County by the 20th for direct bookings.Source

House rules for guests

Events
No gatherings above the overnight limit
Source
Signs
Temporary signs only, per the sign rules
Source

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.