What are the short-term rental rules and taxes in Asheville and Buncombe County, NC?

In Asheville the first question is where the home sits. A home inside City of Asheville limits follows the city's zoning code, which separates renting rooms while you live there (a homestay) from renting the whole place (a short-term vacation rental). A home in unincorporated Buncombe County follows county zoning instead. Taxes are simpler: the same county occupancy tax and state sales tax apply in both. Everything below comes from city, county, state and platform pages, linked where it's used.

Checked on Nov 4, 2026.

Do you need a permit or registration

Inside Asheville city limits

The city's homestay page (opens in a new tab) and its apply for a homestay permit page (opens in a new tab) set out two categories.

For a homestay, the city's Unified Development Ordinance, section 7-16-1(b)(9) (opens in a new tab) adds these conditions:

• The operator must be 18 or older, live there full time and be present overnight during stays. It must be the operator's only primary residence.
• Two documents proving residency are required. The city's homestay FAQ (opens in a new tab) lists accepted ones, such as voter registration, a driver's license, a W-2 or vehicle registration, and says bills and statements are not accepted.
• One homestay per lot, and one permit per person, household or entity.
• Not allowed in a detached accessory structure, unless it was permitted before Dec 14, 2021.
• Lodging only. No signs, and no goods, services or advertising visible from outside.
• Liability insurance covering the homestay and guests is required, and occupancy and sales taxes must be paid.
• The permit is reviewed and inspected every year.

Apply with the city's online new homestay permit form (opens in a new tab). Existing permits renew yearly through the renewal form (opens in a new tab). Neither city page lists a permit fee, so ask the Compliance Division at 828-251-1122 or homestayinspections@ashevillenc.gov.

For a whole-home STVR, the same ordinance (section 7-16-1(b)(64.1)) requires off-street parking, liability insurance, payment of occupancy and sales taxes, compliance with building codes, and an annual zoning permit with a yearly review and inspection. The ordinance points to the Table of Permitted Uses for districts, while the city's permit page says Resort only. Before you list or buy, ask Asheville Development Services to confirm in writing that your parcel's zoning allows an STVR.

Unincorporated Buncombe County

Buncombe County's planning department proposed new zoning limits on short-term rentals in 2023 and 2024, including limits on which districts allow new rentals, a smaller maximum floor area and a ban in manufactured home parks, according to county news posts from December 2023 (opens in a new tab) and April 2024 (opens in a new tab). Those pages describe proposals and say existing rentals would be grandfathered. The official pages read for this answer do not say what was finally adopted. Confirm the current rules for your parcel with Buncombe County Planning before you host.

Occupancy and sales taxes

Combined, using only these official rates: 7% sales tax + 6% occupancy tax = 13%. The NCDOR rate table read is the version effective July 1, 2026. The county pages read do not mention a separate City of Asheville lodging tax. If your home sits in one of the county's other towns, ask that town whether it adds anything.

What's taxed: NCDOR's rentals of accommodations page (opens in a new tab) lists cleaning, pet, damage, reservation and credit card fees as part of taxable gross receipts. Buncombe County exempts stays of 90 or more consecutive days with the same person.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's North Carolina tax article (opens in a new tab) says it collects and remits state and local sales tax (6.75% to 7.5% depending on county) and all locally imposed occupancy taxes on reservations under 90 nights, calculated on the listing price including cleaning and guest fees. It says hosts must still assess all other tax obligations.

Vrbo. Vrbo's lodging tax list for N to Z states (opens in a new tab) shows it collects state and local sales and use tax plus city and county occupancy tax for North Carolina stays under 90 nights, starting Oct 1, 2019. Its general tax page (opens in a new tab) says you're responsible for taxes it isn't liable for, and for bookings made outside its online system.

What stays your job. Buncombe County's page says the property owner is responsible for making sure the tax is collected and remitted. When a third party both collects and remits, you leave those sales off your monthly county form, and in an audit you must show that the platform paid. So:

• Keep each platform's tax reports for every month.
• Collect and remit both taxes yourself on direct bookings and any channel that doesn't remit.
• Ask the county whether it expects a monthly return from you even when every booking came through Airbnb or Vrbo.

Filing and registering for the taxes you must file yourself

Buncombe County occupancy tax (county page (opens in a new tab)):

1. Fill out the New Remitter Information Form and send it to the county Tax Department by email or mail.
2. The county sends you an account number and instructions for its online payment portal. The page says a new filing platform is coming soon.
3. File monthly. Tax is due by the 20th of the following month (July's tax by Aug 20). A 20th on a weekend moves to Monday.
4. Pay online, or by cash, check or money order in person or by mail. Contact is 828-250-4910, P.O. Box 3140, Asheville, NC 28802.

NC sales tax. NCDOR's accommodations page says returns go on Form E-500, filed and paid online. The pages read do not state a filing frequency for new accounts, so confirm it when you register. NCDOR's general line is 1-877-252-3052.

This is not tax advice. A CPA who works with North Carolina rentals can confirm how your filings fit together.

Other local rules

• Smoke and CO alarms. North Carolina's Vacation Rental Act, G.S. 42A-31 (opens in a new tab), requires the landlord to provide working smoke alarms and put in new batteries yearly. CO alarms are required where there is a fossil-fuel heater, appliance or fireplace, or an attached garage, with at least one per level. Our alarm count guide turns that into numbers.
• Egress windows (homestays). The homestay FAQ lists sleeping-room window specs, including a sill no more than 44 inches above the floor and a minimum net clear opening of 4 square feet. Your floor plan must label the smoke and CO detectors.
• Fire extinguisher. None of the city pages read states an extinguisher rule. Ask the inspector.
• Parking. Homestays need no extra off-street parking. STVRs must meet the off-street parking section of the code.
• Occupancy limits and noise. Not stated on the city pages read. Confirm with the Compliance Division.

Put the rules guests must follow in your house rules and the safety locations in your house manual.

Where to check for changes

• City of Asheville homestays (opens in a new tab) and the UDO (opens in a new tab)
• Buncombe County occupancy tax (opens in a new tab)
• NCDOR current sales tax rates (opens in a new tab)
• Airbnb North Carolina taxes (opens in a new tab) and Vrbo N to Z tax list (opens in a new tab)

To see what a booking leaves you after platform fees, use the Airbnb fee calculator. For the income tax side, see short-term rental taxes.