LicensedRental

Virginia county rules

James City County, VA vacation rental rules and taxes

James City County, which surrounds Williamsburg, treats short-term rentals as “tourist homes” or “rental of rooms,” and most residential districts require a Board of Supervisors special use permit. The county’s plan favors rentals in rural or commercial areas, on a major road, at the edge of a subdivision, with the owner living on site, and it has denied whole-home rentals that miss those marks. Stays pay 7% sales tax plus a 5% lodging tax and $2 a night.

Checked against official sources November 7, 2026
Market
Part of about 1,190 “Williamsburg” listings
AirROI’s Williamsburg market includes homes in James City and York counties.Source
Zoning
Special use permit in most residential districts
Some commercial districts allow tourist homes by right.Source
County guidelines
Major road, subdivision edge, owner on site
Plus rural, commercial, or mixed-use land. The Board was asked in 2024 to drop the owner-on-site guideline.Source
After approval
Business license + new certificate of occupancy
Within 12 months, or the permit is void (typical condition).Source
Taxes
7% sales + 5% lodging + $2 a night

Renting a home for more than 30 days needs no special use permit. A permit for an accessory apartment doesn’t cover short-term rentals; that takes its own permit.

The county has contacted owners listing rentals without a permit. In 2024 the Board considered dropping the owner-lives-on-site guideline after the Planning Commission recommended against it; we couldn’t find the final vote.

James City County’s website blocked our automated checks; we read the county’s posted meeting documents instead. The City of Williamsburg has its own, stricter rules.

What to do

  1. Check whether your property fits the county’s guidelines

    The county’s plan says short-term rentals fit best on land planned as rural, commercial, mixed use, or economic opportunity; on a major road (arterial or collector, not a subdivision street); on the edge or corner of a subdivision rather than inside it; and with the owner living on the property during stays. Staff have recommended against, and the Planning Commission has voted down, applications that missed several of these.Source

  2. Apply for a special use permit

    Most residential districts need a Board of Supervisors special use permit, with Planning Commission and Board hearings and notice to neighbors. Approvals usually tie the rental to a site layout (the “master plan” filed with the application) and set limits such as the number of bedrooms and guests, one rental contract at a time, no signs, and all parking on the property.Source

  3. Get your license and certificate of occupancy

    Even where a tourist home is allowed by right, you need a business license and an updated certificate of occupancy showing the home meets commercial fire and building codes. Permits typically require both within 12 months.Source

  4. Taxes on each stay

    Stays under 90 days owe 7% 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, file the 5% transient occupancy tax and $2 per room per night with the James City County Commissioner of the Revenue before the 20th of each month, payable to the Treasurer. Late filing or payment adds a 10% penalty.Source

House rules for guests

Typical permit conditions
Bedroom and guest caps
For example, a 2022 permit allowed 2 bedrooms and 4 guests.Source
Contracts
One at a time
No separate rentals at the same time.Source
Parking
On the property
No renters’ buses, commercial trucks, or trailers.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.