Last updated November 1, 2026 · By the Excelsior Stays team
Key takeaways
Airbnb and Vrbo collect state and local lodging taxes on bookings made through them in North Carolina, Georgia, and Tennessee. They are marketplace facilitators under each state's law.
Direct bookings are the gap. When a guest books with you by phone, text, or your own website, no platform collects the tax. The owner, or the owner's property manager, is responsible.
Lodging tax is not income tax. Platforms collect taxes from guests. Your rental income still belongs on your own return, whether or not you receive a Form 1099-K.
For 2026, a 1099-K is issued only above $20,000 and 200 transactions. The 1099-NEC threshold for paying contractors rises to $2,000.
Start now: download platform tax reports, list direct bookings, collect W-9s, gather receipts, and log your personal-use days before December 31.
This guide is for organization and general information, not tax advice. Rates and rules change, so confirm your situation with a qualified CPA.
Why year-end catches vacation rental owners off guard
Most owners in the Blue Ridge and Smoky Mountain markets list on Airbnb and Vrbo, see taxes added to the guest's total, and reasonably assume taxes are handled.
For lodging taxes on platform bookings, that's mostly true. But three things fall outside what the platforms do: bookings that didn't go through a platform, your own income taxes, and the paperwork for people you paid. Those three surface in January and February, usually at the worst time.
The details also differ by state. If you own in North Carolina, Georgia, and Tennessee, or live in one and own in another, the differences are worth knowing.
Do Airbnb and Vrbo collect lodging taxes for you?
Yes, for bookings made on their platforms, in all three states. North Carolina, Georgia, and Tennessee each require marketplace facilitators to collect and remit taxes on short-term stays booked through them. Airbnb states that it collects North Carolina sales tax and all locally imposed occupancy taxes on North Carolina reservations. Georgia's marketplace law has required platforms to collect state sales tax since April 1, 2020, and the state hotel-motel fee since July 1, 2021. Tennessee has required short-term rental marketplaces to collect local occupancy tax, and remit it to the Department of Revenue monthly, since October 1, 2020.
No, for anything booked outside the platform. For a direct booking, the responsibility falls on whoever took the booking: the owner, or a property manager acting as rental agent.
North Carolina vs. Georgia vs. Tennessee at a glance
North Carolina
State sales tax on stays: 4.75%
Local sales tax: 2%–2.75% by county (Watauga and Avery are 6.75% combined; Buncombe is 7%)
Flat per-night state fee: None
Local occupancy tax: Set by county or city
On Airbnb/Vrbo bookings: The platform collects state and local sales tax plus local occupancy tax
On direct bookings: The owner or rental agent collects and remits
Georgia
State sales tax on stays: 4%, plus local sales tax that varies by county
Flat per-night state fee: $5 per night, for stays of 30 days or less
Local hotel-motel tax: Set by county or city
On Airbnb/Vrbo bookings: The platform collects sales tax, the $5 fee, and local hotel-motel tax
On direct bookings: The owner or manager collects. Sales tax applies; whether the $5 fee applies depends on "innkeeper" status
Tennessee
State sales tax on stays: 7%, plus local sales tax of 1.5%–2.75%
Flat per-night state fee: None
Local occupancy tax: Set by county or city
On Airbnb/Vrbo bookings: The platform collects sales tax plus local occupancy tax and remits both to the Tennessee Department of Revenue
On direct bookings: The owner or manager collects. Sales tax goes to the state; local occupancy tax goes to the local government
Recent change: Since July 1, 2025, the first 30 days of any stay are subject to local occupancy tax
Rates as published by each state's Department of Revenue and verified October 31, 2026. Always check your county's current rate.
North Carolina: what to know at year-end
North Carolina taxes short-term stays under its sales tax, at the 4.75% state rate plus the county's local rate, and lets counties and cities add their own occupancy tax. In the High Country, Watauga and Avery counties carry a 6.75% combined sales tax rate. Buncombe County (Asheville) is at 7%.
For year-end, focus on:
Direct bookings. If all your bookings go through a marketplace facilitator, you generally don't need to register with the state or file lodging tax returns. Once you take a direct booking, that changes.
Rental agents. North Carolina law treats a property manager or real estate broker acting as rental agent as responsible for the tax on accommodations they rent. If your manager takes direct bookings, ask how they handle it.
County registration. Some counties, including Buncombe, require operators to register and file local occupancy tax returns. Check with your county finance office.
For context on recovery and demand in the region this year, see our post on the Western North Carolina vacation rental market two years after Helene.
Georgia: what to know at year-end
Georgia has the most layers of the three states. A typical North Georgia stay, in Fannin, Gilmer, or Union County, for example, can involve state and local sales tax, the $5-per-night state hotel-motel fee, and a local hotel-motel tax set by the county or city.
For year-end, focus on:
The $5 fee is per night, not a percentage. It applies to stays of 30 days or less. When a marketplace innkeeper such as Airbnb handles the booking, the platform collects and remits it, so the owner doesn't.
Direct bookings still owe sales tax. Georgia's own rule includes an example in which an owner renting directly isn't subject to the $5 fee but still owes sales tax on the stay. Whether the fee applies to you depends on how your county licenses and taxes you.
Mixed channels need reconciling. If you book both on platforms and direct, match platform reports against your own records before anything is filed.
Owners in Gilmer County may also want to revisit our earlier guides on what Gilmer County cabins actually earn and what professional management actually includes.
Tennessee: what to know at year-end
Tennessee applies its 7% state sales tax plus local sales tax of 1.5% to 2.75% to short-term stays. Many cities and counties add a local occupancy tax.
For year-end, focus on:
Platform bookings are covered. If a marketplace facilitator is required to collect Tennessee sales tax on a booking, the host isn't responsible for the sales tax collected on that booking.
Direct bookings split two ways. The owner remits sales tax to the state, and local occupancy tax goes to the city or county, not to the Department of Revenue.
The 30-day rule changed. Since July 1, 2025, the first 30 days of occupancy in a short-term rental are subject to local occupancy tax, regardless of the total length of the stay. Owners who host long winter or extended stays should know this.
Business tax. Tennessee guidance says property owners should include marketplace sales when calculating gross sales for business tax purposes. Ask your CPA whether you need to register.
No personal income tax on wages. Tennessee doesn't tax wage income, but that doesn't remove your federal obligations or your obligations in other states.
Townsend and Blount County owners can read our guide to how Townsend vacation rentals win on the "quiet side" of the Smokies. Gatlinburg and Pigeon Forge owners can see our week-by-week Gatlinburg holiday season guide and our breakdown of which Sevier County rules actually apply to your cabin.
What the platforms don't handle (in any state)
1. Direct bookings
Returning guests, word-of-mouth stays, and website bookings all sit outside the marketplace system. Keep a simple log: dates, guest name, amount charged, taxes collected, and where they were sent.
2. Your income taxes
Lodging taxes are paid by guests. Your net rental income is reported on your own federal return, and possibly a state return. Under the One Big Beautiful Bill Act, signed July 4, 2025, platforms and payment processors issue a Form 1099-K only when payments exceed $20,000 and 200 transactions in a calendar year. That threshold is not adjusted for inflation. Falling below it doesn't make income tax-free; you just won't get the form.
3. 1099s for people you paid
The same law raised the 1099-NEC and 1099-MISC reporting threshold from $600 to $2,000 for payments made in 2026, adjusted for inflation starting in 2027. If you paid a cleaner, handyman, landscaper, or snow-removal service directly and crossed that amount, you'll likely need to issue a form in January. Get W-9s now.
4. Personal-use days
The nights you, your family, or friends stayed for free or below market rate affect how your expenses are allocated. Keep a log with dates.
5. Out-of-state ownership
If you live in one state and own a rental in another, you may need a nonresident return in the rental's state. This is a CPA question, but bring the facts.
The year-end owner checklist
Before December 31
Log any remaining personal-use dates for the year.
Request W-9s from every contractor you paid directly in 2026.
Make sure all December direct bookings are recorded, with taxes collected noted.
Pay and document any deductible expenses you plan to claim for 2026.
In early January
Download each platform's annual earnings report and its tax collection report (Airbnb, Vrbo, any others).
Pull your management company's year-end statement, if you have one.
Reconcile platform payouts against bank deposits.
Organize receipts: cleaning, repairs, supplies, utilities, internet, insurance, HOA dues, property taxes, management fees, software subscriptions.
Issue 1099-NECs to contractors over the $2,000 threshold. The usual deadline is January 31.
Put it all in one folder and send it to your CPA.
Questions to bring to your CPA
Do I need to register for or file sales, occupancy, or hotel-motel tax returns in my county because of direct bookings?
How should my personal-use days affect my expense allocation?
Given my average guest stay and how involved I am, how should this rental be classified for income tax purposes?
Does it make sense to look at depreciation strategy, such as a cost segregation study, for this property?
Do I need a nonresident state return where my rental is located?
In Tennessee: do I need to register for state business tax?
Am I required to issue any 1099s for 2026?
How full-service management simplifies year-end
For homes we manage across North Carolina, North Georgia, and East Tennessee, the goal is for year-end to be one email, not a scavenger hunt. One manager tracks every booking channel, every expense, and every owner stay throughout the year, so the records your CPA needs already exist when January arrives. (See The Owner's Year Off for what full-service management looks like season by season.)
Self-managing, or getting a pile instead of a packet from your current manager? Book a free year-end owner review. In 30 minutes, we'll go through your 2026 bookings by channel, show you which taxes were collected where, flag any direct bookings that need attention, and send you a clean summary for your CPA.
Frequently asked questions
Does Airbnb collect occupancy tax in North Carolina?
Yes. Airbnb states that it collects North Carolina state and local sales tax and all locally imposed occupancy taxes on North Carolina reservations. These taxes apply only to bookings made through Airbnb. Direct bookings must be handled by the owner or the owner's rental agent.
What is Georgia's $5 hotel-motel fee, and does it apply to Airbnb rentals?
Georgia charges a $5 fee for each night an accommodation is rented, for stays of 30 days or less. Since July 1, 2021, it applies to short-term rentals. Platforms like Airbnb that qualify as marketplace innkeepers collect and remit it, so owners don't have to on those bookings.
Do I have to collect lodging tax on direct bookings?
Generally, yes. In North Carolina, Georgia, and Tennessee, lodging and sales taxes on short-term stays apply regardless of how the guest booked. Without a platform in the middle, the owner or property manager must collect and remit them. Requirements vary by county, so confirm locally.
What is the 1099-K threshold for vacation rental owners in 2026?
For 2026, platforms and payment processors issue a Form 1099-K only if payments exceed $20,000 and the number of transactions exceeds 200 in the calendar year. That's the threshold restored by the One Big Beautiful Bill Act. Income below the threshold is still taxable.
Do I need to send my cleaner a 1099?
If you paid an individual contractor directly for business services and payments made in 2026 reach $2,000 or more, you'll generally need to issue a Form 1099-NEC. That's up from $600 in prior years. If your property manager pays vendors, they typically handle this.
Do short-term rentals in Tennessee pay occupancy tax on long stays?
Since July 1, 2025, Tennessee applies local occupancy tax to the first 30 days of occupancy in a short-term rental unit, regardless of the total length of the stay. Owners who host extended winter stays should confirm with their county how nights after day 30 are treated.
Is there a state license for short-term rentals in NC, GA, or TN?
None of the three states requires a statewide short-term rental license. Counties and cities set permits and registration, and tax registration is separate. Check your local government's rules in addition to the state tax rules above.
What records should a vacation rental owner keep for taxes?
Keep platform earnings and tax reports, a direct-booking log, bank statements, receipts for all rental expenses, management statements, contractor W-9s and 1099s, a personal-use log, and closing documents for the property. Seven years is a common retention guideline; ask your CPA.
Get ready for 2027 now
Year-end is when gaps in a rental operation show up: missing records, untracked direct bookings, vendors paid in cash. It's also the best time to fix them before next season. In our next post, we'll walk through what it takes to switch property managers over the winter so your home is fully set up before spring and summer bookings open.
Book your free year-end owner review →
Sources
North Carolina Department of Revenue: Current Sales and Use Tax Rates
North Carolina General Statutes: G.S. 105-164.4F, Accommodation rentals
Airbnb Help Center: Occupancy tax collection and remittance by Airbnb in North Carolina
Georgia Department of Revenue: State Hotel-Motel Fee FAQ
Georgia Department of Revenue: Rule 560-13-2-.01, State Hotel-Motel Fee (amended)
Tennessee Department of Revenue: Taxation of Short-Term Rental Units manual
Tennessee Department of Revenue: SUT-48: Short-Term Rentals Reporting Requirements
Tennessee Department of Revenue: Taxation of Short-Term Vacation Rentals (webinar)
Tennessee Department of Revenue: 2020 Legislative Summaries
CPA Practice Advisor: One Big Beautiful Bill Act Changes 1099 Thresholds
This article is for general information and organization only and does not constitute tax, legal, or accounting advice. Tax rates and rules change frequently; consult a qualified tax professional about your situation.