North Carolina county rules
Orange County, NC vacation rental rules and taxes
Orange County’s market centers on Chapel Hill and UNC, with smaller ones in Carrboro and Hillsborough. Chapel Hill limits rentals without a resident host to commercial and mixed-use zones and requires a yearly permit. Stays owe 7.5% sales tax, the county’s 3% occupancy tax, and a 3% town tax in Chapel Hill, Carrboro, and Hillsborough.
Checked against official sources November 6, 2026Orange County’s return is due by the 15th, not the 20th like most North Carolina counties.
Part of Chapel Hill is in Durham County, and part of Mebane is in Orange County. Check which county your address is in.
What to do
Taxes on each stay
Stays under 90 days owe 7.5% 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. Orange County’s 3% occupancy tax applies countywide. For direct bookings, file it through the county’s online portal by the 15th of each month, even when no tax is due. Inside Chapel Hill, Carrboro, and Hillsborough a 3% town tax applies too.Source
Then your city or area
Zoning rules for short-term rentals are set by each city or town, and by the county outside town limits. Pick your area.
Towns
Carrboro
We found no short-term rental section in Carrboro’s Land Use Ordinance; the closest uses are tourist homes and bed and breakfasts, which need a town permit in the districts that allow them. Stays owe 7.5% sales tax, Orange County’s 3% occupancy tax, and Carrboro’s 3%.
Full guideChapel Hill
Chapel Hill lets you rent your own home (where you live most of the year) in most zones, but whole-home rentals without a resident host are allowed only in commercial, office, and mixed-use districts. Every rental used more than 14 days a year needs a yearly town permit ($160). Stays owe 7.5% sales tax plus 6% occupancy tax.
Full guideHillsborough
Hillsborough considered short-term rental rules in 2024, but staff recommended adopting its zoning update without them, and we could not confirm any were adopted. Stays owe 7.5% sales tax, Orange County’s 3% occupancy tax, and Hillsborough’s 3%.
Sources
- Occupancy tax · Orange County Tax Office
- North Carolina Airbnb market data (active listings) · AirROI
- Current sales and use tax rates · North Carolina Department of Revenue
- 2026 Profile of North Carolina Occupancy Taxes and Their Investment (July 2026) · Magellan Strategy Group (published by the NC Restaurant & Lodging Association)
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.