LicensedRental

Virginia county rules

Carroll County, VA vacation rental rules and taxes

Carroll County, along the Blue Ridge Parkway at Fancy Gap and around Hillsville, requires every short-term rental to register with the Commissioner of the Revenue each year. Stays pay 5.3% sales tax plus a 5% county lodging tax filed with the Treasurer.

Checked against official sources November 7, 2026
Market
About 120 Airbnb listings
Fancy Gap 68, Hillsville 50 (AirROI).Source
County registration
Required every year
With the Commissioner of the Revenue.Source
Sales tax
5.3%
Lodging tax
5%
Filed with the Treasurer by the 20th of the next month.Source

The county amended its lodging tax article in September 2026; we couldn’t see what changed. Hillsville is a separate town; ask the town about its own rules.

What to do

  1. Register with the Commissioner of the Revenue

    Fill out the county’s Short Term Rental Registration Form and mail it to the Commissioner of the Revenue, 605-7 Pine St., Hillsville. Register again every year.Source

    Carroll County short-term rentals →

  2. Taxes on each stay

    Stays under 90 days owe 5.3% sales tax, and stays under 30 days also owe the local transient occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with Virginia Tax. For direct bookings, send the 5% lodging tax and a report of your rental charges to the Carroll County Treasurer by the 20th of the next month. Call the Treasurer before your first filing. If you serve meals, a 4% meals tax applies too.Source

  3. File business personal property

    The county taxes the furnishings in a rental (linens, dishes, decor, hot tubs, grills) as business personal property. File by May 1; the tax is due December 5.Source

  4. Ask about zoning

    Ask Carroll County zoning (or the Town of Hillsville inside town limits) whether zoning allows a short-term rental at your address and whether you need a permit. Check your HOA rules too.

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 Spot something out of date?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.