Effective October 1, 2026, North Carolina will impose a new tax on peer-to-peer vehicle sharing providers. Peer-to-peer vehicle rentals allow private vehicle owners to rent their vehicles to other individuals via online apps and marketplaces.
The tax applies to gross receipts from long-term leases or rentals, short-term leases or rentals, and vehicle subscriptions (referred to as “limited possession commitments”). A peer-to-peer vehicle sharing provider is required to pay the tax to the North Carolina Secretary of Revenue. The tax is for the privilege of using the highways of the state.
The tax is imposed on the peer-to-peer vehicle sharing provider but is to be added to the limited possession commitment and paid by the person who rents the vehicle. The tax applies to peer-to-peer vehicle rentals or leases billed on or after October 1, 2026. The Department of Revenue (DOR) notes that local jurisdictions in the state levy additional taxes on certain motor vehicle leases and rentals.
As of October 1, 2026, the tax rates due on limited possession commitments are as follows:
North Carolina law provides a maximum tax for a continuous limited possession commitment to the same person. The maximum tax only applies to limited possession commitments of certain commercial motor vehicles and recreational vehicles.
A peer-to-peer vehicle sharing provider must register for a Motor Vehicle Lease and Subscription Tax account with the DOR before October 1, 2026, either online or via paper form. The tax due on limited possession commitments must be reported on Form E-500F (Motor Vehicle Lease and Subscription Tax Return). (Sales and Use Tax Directive No. 26-2, North Carolina Department of Revenue, July 23, 2026)