LicensedRental

Orange County, North Carolina

Hillsborough, NC vacation rental requirements

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%.

Checked against official sources November 6, 2026

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Town rental rules
Not confirmed
A 2024 draft would have barred rentals in multifamily, mobile home park, and residential special use districts. Staff recommended leaving the rules out.Source
Taxes
7.5% sales + 6% occupancy
Orange County 3% + Hillsborough 3%.Source

The 2024 draft was added at the request of the town’s Tourism Development Authority. The town may take up short-term rentals again as a separate amendment.

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

Orange County, North Carolina

  1. 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

    Orange County occupancy tax →

  2. 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 Hillsborough

  1. 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 is filed through the county portal by the 15th; Hillsborough adds 3%. Ask the town who collects its share from direct-booking hosts.Source

  2. Ask the Planning Department

    Ask Hillsborough’s planning staff whether the town adopted any short-term rental standards after 2024 and whether zoning allows one at your address. Check your HOA rules too.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.