Chincoteague Short-Term Rental Regulations

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Permit & Licensing

Town of Chincoteague business license

This permit type does not require primary residence.

Tax Obligations

Combined rate: 10.3% of gross rental income.

Collection: The accommodations provider or the accommodations intermediary (booking platform) collects and remits the tax, depending on the booking channel.

Rental Limits

Chincoteague does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Chincoteague does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

Delinquent remittance: a 10% penalty plus interest at 10% per annum on the unpaid tax (Sec. 54-258). Failure to collect/report after a 10-day written notice results in immediate suspension of the business license and the right to operate in the Town (Sec. 54-259). Willful failure to collect, account for, or remit the tax, or willful evasion, is a misdemeanor (Sec. 54-255).

Platform Requirements

Accommodations intermediaries (e.g., Airbnb, VRBO) that handle reservations must collect and remit the applicable tax on the booking, including their service fees.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Chincoteague:

1. Apply for Town of Chincoteague business license. Submit application + $50-$500 fee.
2. Register for tax accounts. Set up lodging tax accounts with Town of Chincoteague (transient occupancy tax); Virginia Department of Taxation (state retail sales tax on accommodations).
3. Collect and remit taxes. 10.3% on all bookings.
4. Renew annually. $50-$500 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Chincoteague?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Chincoteague requires a Town of Chincoteague business license.

Does Chincoteague require a short-term rental to be your primary residence?

No. Chincoteague allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Chincoteague?

Chincoteague does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Chincoteague?

Short-term rental stays in Chincoteague are subject to a combined 10.3% in lodging taxes. This combines 5% Town Transient Occupancy Tax + 5.3% Virginia Retail Sales Tax on Accommodations. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Chincoteague?

Delinquent remittance: a 10% penalty plus interest at 10% per annum on the unpaid tax (Sec.