LicensedRental

Northampton County, Virginia

Cape Charles, VA vacation rental requirements

Cape Charles requires a yearly short-term rental zoning permit ($450), a business license, and a building inspection, with notice to the neighbors next door. About 300 rentals are licensed, most in the Historic District and Bay Creek. Stays pay 6.3% sales tax plus town and county lodging taxes.

Checked against official sources November 7, 2026

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Market
307 Airbnb listings
The town counted 308 licensed rentals in October 2025: 217 in the Historic District and 90 in Bay Creek.Source
Zoning permit
$450 a year
Renewed every year, with a town business license.Source
Inspection
Building inspection required
Neighbor notice
Required with the application
You certify that adjacent owners were notified.Source
Lodging tax
Town 4% + $4 a night, plus county 2%
Town rate from 2022; confirm the current rate.Source

The town adopted its rules in November 2024 and revised them in December 2024, dropping a council permit for homes with more than 10 guests. The town’s own rental page (capecharles.org) has the current application; confirm fees and districts there.

Your licensing checklist

In order: the state, the county, then the town.

Commonwealth of Virginia

  1. Know who pays the tax

    When a platform like Airbnb books the stay, it collects and pays the state sales tax and the local lodging tax for you. If guests pay you directly, register with Virginia Tax for sales tax and with your county or city for the transient occupancy tax.Source

    Register a business with Virginia Tax →

  2. Register with your locality if it has a registry

    Many counties and cities require short-term rental hosts to register every year. Registration is a simple filing (your name, each address, and the owner’s permission if you lease the home), but listing an unregistered rental can cost up to $500 per violation.Source

  3. Check your zoning

    Counties and cities keep their power to decide where short-term rentals are allowed and whether you need a zoning or use permit. HOA and condo rules still apply on top. Pick your area for the local rules.Source

Northampton County, Virginia

  1. Register for the lodging tax

    Short-term rental owners must register with the Commissioner of the Revenue for a transient lodging account, collect the lodging tax from guests who book directly, and pay it every quarter. Airbnb collects it on its bookings.Source

    Northampton vacation rental tax →

  2. Then your town or area

    Towns set their own zoning and lodging tax, and the county sets them outside town limits. Pick your area.

Town of Cape Charles

  1. Get a business license and inspection

    Apply for a town business license and schedule the building inspection the permit requires. Occupancy is based on the home’s legal bedrooms.Source

  2. Apply for the STR zoning permit

    Apply to the Planning and Zoning Department, certify that you notified the owners next door, and give the town 24/7 contact information for a responsible person. Provide off-street parking if the property has it. The permit is renewed every year; for 2026 the town moved licensing to its RentalScapes portal.Source

  3. Taxes on each stay

    Stays under 90 days owe 6.3% 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. Cape Charles charges its own transient occupancy tax (4% plus $4 a night for rental homes since 2022) and Northampton County adds 2% inside the town. For direct bookings, file the town tax quarterly through the town and the county’s 2% with the Commissioner of the Revenue.Source

Fees

$450 a year plus the business license

STR zoning permit (yearly)$450

Source

House rules for guests

Guests
Set by legal bedrooms
Children 2 and under don’t count. Building code limits still apply.Source
Local contact
Available 24/7
Given to the town.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.