LicensedRental

New Hanover County, North Carolina

Wilmington, NC vacation rental requirements

Wilmington allows homestays and whole-house short-term rentals under zoning standards: a local operator within 25 miles, one parking space per bedroom, $500,000 liability insurance, and no parties. The city dropped its registration, cap, and spacing rules after Schroeder (2022). Stays pay 7% sales tax plus a 6% occupancy tax.

Checked against official sources November 6, 2026

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City registration
Ended in 2022
Wilmington stopped registering rentals and dropped its 2% cap and 400-foot spacing after the Schroeder ruling.Source
Whole-house rentals
Local operator within 25 miles
Available 24 hours a day. One off-street parking space per bedroom.Source
Homestays
Host lives on site, up to 3 guest rooms
No more than 3 guest vehicles, parked behind the front of the house.Source
Insurance
$500,000 per occurrence
Commercial general liability while the home is rented.Source
Taxes
7% sales + 6% occupancy tax

In the office, commercial, downtown (CBD), and UMX districts, short-term rentals can’t be on the ground floor facing a street, except in homes and apartment buildings that existed on March 1, 2019.

The current Land Development Code (Section 18-157, updated in 2022) is a separate Municode product. Older text in Chapter 18 of the Code of Ordinances still shows the struck-down registration, cap, and lottery rules; the city’s page and the current code no longer include them.

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

New Hanover County, North Carolina

  1. Register for the room occupancy tax

    If guests pay you directly, report every month through New Hanover County’s room occupancy tax portal, by the 20th day after the month ends. Airbnb collects the tax on its bookings.Source

    NHC room occupancy tax →

  2. Then your town or area

    Zoning rules and some occupancy taxes are set by each town, and by the county outside town limits. Pick your area.

City of Wilmington

  1. Check your zoning

    Short-term rentals (29 nights or less) follow Section 18-157 of the Land Development Code. Ask the city’s zoning staff whether your district allows the type of rental you plan, homestay or whole-house. Mobile home districts don’t allow them. A homestay in a residential or historic district must be the host’s principal residence, with no more than three guest rooms.Source

    Wilmington short-term lodging →

  2. Set up parking, insurance, and an operator

    For a whole-house rental, provide one off-street, all-weather parking space per bedroom (documented shared or rented spaces count) and name a local operator who is available 24 hours and within 25 miles. Carry at least $500,000 in commercial general liability insurance.Source

  3. Taxes on each stay

    Stays under 90 days owe 7% 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. The 6% occupancy tax is filed with New Hanover County Finance through its online portal by the 20th of the next month.Source

House rules for guests

Posted notice
Inside the unit
Operator name and phone, address, maximum overnight guests, garbage day, the police non-emergency number, and that parties aren’t allowed.Source
Events
Not allowed
No parties, weddings, receptions, classes, or large gatherings.Source
Food
No meals served; no cooking in bedrooms
For whole-house rentals.Source
Trash
Carts out and back on collection day
Source
Homestay records
Proof of residence and a year of rental dates
Hosts must show them to the city on request.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.