Orange County, North Carolina
Chapel Hill, NC vacation rental requirements
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.
Checked against official sources November 6, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
With an accessory apartment or duplex on your lot, you can rent more than one unit to separate parties only while you are on site.
Special events that affect neighbors need their own permit.
Your licensing checklist
In order: the state, the county, then the town.
State of North Carolina
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
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
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
Orange County, North Carolina
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.
Town of Chapel Hill
Check which kind of rental you have
If you live in the home at least 183 days a year, it’s a primary residence rental, allowed as an accessory use in most districts. If no one lives there, it’s a dedicated rental, allowed only in the town center, commercial, office-institutional, and some mixed-use districts. In a building with three or more units, no more than two units or 3% may be dedicated rentals.Source
Get the town permit
Apply to Planning for a short-term rental zoning compliance permit ($160 in fiscal 2025-26) and renew it every year. Put the permit number in every listing.Source
File the town and county occupancy tax
Chapel Hill’s 3% tax is on top of Orange County’s 3%. For direct bookings, file the county return through the county portal by the 15th and ask the town how to file its share; the town posts an occupancy tax application and form.Source
House rules for guests
Sources
- Occupancy taxes and Airbnb · UNC School of Government
- Vacation Rental Act (G.S. Chapter 42A) · North Carolina General Assembly
- Short-term rental regulations after Schroeder · UNC School of Government
- Occupancy tax · Orange County Tax Office
- Code section · Chapel Hill (Municode)
- Code section · Chapel Hill (Municode)
- Occupancy tax form · Town of Chapel Hill
- Fee schedule: Planning (FY2025-2026) · Town of Chapel Hill
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.