What should Ocracoke hosts know about north carolina state law (ncgs?

North Carolina state law (NCGS § 160D-1207) prohibits the county from requiring a registration or permit to rent residential property.

What should Ocracoke hosts know about ocracoke has a total 5%?

Ocracoke has a total 5% occupancy tax (3% county base + 2% district add-on), while mainland Hyde County is only 3%.

Are there rental limits in Ocracoke?

Septic limits are non-negotiable and over-occupancy (more than 2 per bedroom) can lead to immediate Health Department intervention.

What should Ocracoke hosts know about the 15-day rule applies: if?

The 15-day rule applies: if you rent for 14 days or fewer per year, you are exempt from the occupancy tax.

Ocracoke

Permissive

STRs Allowed

North CarolinaLast updated: February 11, 2026

Baseline Verification

100%

Basic verification complete

Verified: Feb 11, 2026

Summary

Short-term rentals in Ocracoke do not require a specific operating permit due to North Carolina state law protections, but must comply with a 5% local occupancy tax and strict septic-based occupancy limits.

Restriction Level

✅

Permissive

Score: 0 (restrictive)

Why this classification:

•Reporting required
•Safety standards required
•No STR-specific permit required
•No night cap
•No primary residence requirement
•No STR-specific fee

In Plain English

Property owners in Ocracoke do not need to apply for a special short-term rental permit or license. However, you must register with the Hyde County Finance Department to collect and remit the 5% occupancy tax if you rent for 15 days or more per year. Additionally, guest limits are strictly enforced at two people per bedroom based on the island's septic system capacity.

At a Glance

Permit Required

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

Processing Time

N/A

4 Things Hosts Often Miss

1.North Carolina state law (NCGS § 160D-1207) prohibits the county from requiring a registration or permit to rent residential property.
2.Ocracoke has a total 5% occupancy tax (3% county base + 2% district add-on), while mainland Hyde County is only 3%.
3.Septic limits are non-negotiable and over-occupancy (more than 2 per bedroom) can lead to immediate Health Department intervention.
4.The 15-day rule applies: if you rent for 14 days or fewer per year, you are exempt from the occupancy tax.

Regulation Details

Eligibility(5)

•Ocracoke: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Ocracoke allows STRs in the following property types: Single Family, Condo, Townhouse, Cottage, Apartment.
•Ocracoke does NOT require the property to be a primary residence. Investment properties are allowed.
•Ocracoke: You can have a co-host or property manager help manage your listing.

Requirements(9)

•Ocracoke STR warning: North Carolina state law (NCGS § 160D-1207) prohibits the county from requiring a registration or permit to rent residential property.
•Ocracoke STR warning: The 15-day rule applies: if you rent for 14 days or fewer per year, you are exempt from the occupancy tax.

Application Process(5)

•Step-by-step guide to get an STR permit in Ocracoke: Step 1: Verify Septic and Bedroom Count - Contact the Hyde County Health Department to confirm the permitted bedroom count for your property's septic system to establish your maximum legal occupancy. Documents needed: Septic Permit. Estimated time: 1-3 days. More info: https://www.hydecountync.gov/departments/health_department.php Step 2: Register for NC Sales and Use Tax - Register with the North Carolina Department of Revenue for a Sales and Use Tax ID number if you are not renting exclusively through a marketplace facilitator. Documents needed: Business Information, SSN or EIN. Estimated time: 7-14 days. More info: https://www.ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-registration Step 3: Register for Hyde County Occupancy Tax - Complete the Hyde County Occupancy Tax Report registration to establish a reporting account with the County Finance Office. Documents needed: Occupancy Tax Registration Form. Estimated time: 5 days. More info: https://www.hydecountync.gov/departments/finance_department.php

Taxes(3)

•Ocracoke: Ocracoke has a total 5% occupancy tax (3% county base + 2% district add-on), while mainland Hyde County is only 3%.
•North Carolina has a state sales tax of 0.0675% that applies to STR rentals.

Limits & Restrictions(3)

•Ocracoke: Septic limits are non-negotiable and over-occupancy (more than 2 per bedroom) can lead to immediate Health Department intervention.
•Ocracoke occupancy calculation: 2 persons per bedroom (set by Hyde County Health Dept based on septic capacity). Count your bedrooms to determine your max guest limit.
•Ocracoke limits stays to a maximum of 89 nights.

Safety Requirements(1)

•Ocracoke requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, Compliance with North Carolina Building and Fire Code, Septic system maintenance is critical for island safety.

Penalties(1)

•Ocracoke enforces the following penalties for STR violations: First offense: $10 per day for failure to file tax return. Second offense: 5% penalty per month of unpaid occupancy tax. Third offense: Potential civil action per NC General Statutes. Daily fine: 10.

Exemptions(3)

•Ocracoke: The 15-day rule applies: if you rent for 14 days or fewer per year, you are exempt from the occupancy tax.
•Ocracoke: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other North Carolina Markets

Cary

North Carolina

Permissive

Cary does not have a dedicated short-term rental ordinance and does not require a specific STR permit or city-level registration. Hosts must comply with general town ordinances regarding noise, parking, and minimum housing standards. A 6% Room Occupancy Tax is collected by Wake County, which is typically handled automatically by major platforms like Airbnb.

0.1% total tax

Hyde County

North Carolina

Permissive

Hyde County does not currently have a dedicated short-term rental ordinance or registration requirement for unincorporated areas, including Ocracoke Island. However, all hosts are required to remit a 5% Occupancy Tax to the county finance department on a monthly basis.

0.1% total tax

Wilmington

North Carolina

Permissive

Following a 2022 North Carolina Court of Appeals ruling, Wilmington no longer requires short-term rental registration or limits the number/density of rentals. Hosts must still comply with zoning standards, parking requirements, and collect a total of 13% in taxes (6% Room Occupancy Tax + 7% State Sales Tax).

0.1% total tax

Cullowhee

North Carolina

Moderate

Short-term rentals in Cullowhee are permitted and regulated by Jackson County, primarily requiring registration for occupancy tax collection.

Permit required

0.1% total tax

Ocracoke

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(5)

Requirements(9)

Application Process(5)

Taxes(3)

Limits & Restrictions(3)

Safety Requirements(1)

Penalties(1)

Exemptions(3)

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Step-by-Step Application Guide

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Frequently Asked Questions

Related Content

Other North Carolina Markets

Cary

Hyde County

Wilmington

Cullowhee

Ocracoke

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Ocracoke?

2What is the TOT tax rate in Ocracoke?

3Are there specific occupancy limits for Ocracoke rentals?

4What are the penalties for non-compliance in Ocracoke?

Related Content

Other North Carolina Markets

Cary

Hyde County

Wilmington

Cullowhee