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, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
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
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 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
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
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
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
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
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
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 |
|---|
House rules for guests
Sources
- Guidelines for sales tax on accommodations (P.D. 21-116) · Virginia Tax
- Short-term rental registries (Va. Code § 15.2-983) · Virginia General Assembly
- Vacation Property Rental Tax / Transient Occupancy Tax · Northampton County Commissioner of the Revenue
- Cape Charles changes course on short-term rentals (Jan. 14, 2025) · Eastern Shore Post
- Short Term Rental Statistics, town council agenda item (Oct. 16, 2025) · Town of Cape Charles Planning & Zoning
- Cape Charles raises taxes to address spending problem (July 1, 2021) · Eastern Shore Post
- Cape Charles launches STR regulation web page (Feb. 7, 2025) · Shore Daily News
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.