Occupancy Tax Form

What is Occupancy Tax?  

It’s a special tax paid by the guest of short-term rentals – such as hotel rooms, vacation rentals, Airbnb's, or similar lodging accommodations – that are less than 30 days. 

What is the Occupancy Tax Rate?

  • The tax rate is 3% of the cost of the room/lodging.

  • Orange County also charges a 3% occupancy tax.

  • This means that guests staying in Chapel Hill pay a combined total of 6% in occupancy taxes—3% to the Town and 3% to the County.

How much revenue does the tax generate? 

In FY 25-26, the total estimated occupancy tax revenue is expected to be $1,750,000

What is current the allocation? 

  • $200,000 is used to contract services with the Orange County Visitor’s Bureau to promote tourism in Chapel Hill.
  • As a general revenue source, the rest of the occupancy tax is allocated into the general fund when Council adopts a budget. 

 

 

 

 

 

 

 

 

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