Peer-to-Peer Car Sharing Laws by State (2026): All 50 States, With Citations

On October 1, 2026, North Carolina started taxing peer-to-peer car rentals at 8%. Under Directive SD-26-2, platforms such as Turo had to register for a new account, add the tax to every short-term booking in the state, and file the same return the big rental counters file. Most North Carolina hosts didn't change anything themselves. They just saw guest prices go up.

The new tax is a fair summary of the past six years. Peer-to-peer car sharing used to sit in a legal gray zone. Now it has its own body of law. Peer-to-peer car sharing laws have been written state by state, and each state's version differs on insurance, tax and record keeping. The reference most people still cite for this is the NCSL's state car-sharing page, which was last updated on January 14, 2020. It lists eight states.

We counted 36.

This guide sets out where every state stands as of November 2026. For each state we read the statute or session law itself, not a summary of it. You'll find a full 50-state table, plus the provisions that actually change a host's economics: insurance multiples, P2P-specific taxes, recall rules and fleet-size thresholds. It is a reference, not legal advice, and a few rows still have open questions, which are flagged where they apply.

What a "P2P car sharing law" actually does

Almost every state on the list below adopted some version of one document: the National Council of Insurance Legislators' Peer-to-Peer Car Sharing Program Model Act. NCOIL adopted it in December 2019 and amended it in April 2021. It is a narrow text. It states that it governs insurance and has no effect on motor vehicle regulation, airports or taxation. That scope explains why the states look so alike on insurance and so different on everything else.

Once you have read one model-act statute, you have read most of them. The core provisions are:

• The platform assumes the owner's liability during the car sharing period, at no less than the state's minimum financial responsibility limits. This protection is lost if the owner made a fraudulent misrepresentation or worked with a driver who failed to return the car.
• The sharing period's coverage is primary. It can be provided by the owner, the driver, the platform or a combination. If those policies lapse, the platform's coverage pays from the first dollar. If the claim happens in a state with higher minimums, the coverage has to make up the difference.
• Personal auto insurers may exclude P2P use. Your own policy can lawfully refuse to cover a crash that happens during a booking. That's why the platform's coverage exists in the first place.
• The platform must check for open safety recalls before listing a car. An owner who receives notice of a recall can't list the car, or must remove it, until the repair is done.
• Records have to be kept. That usually means trip records, who had the car and when, for at least the state's personal-injury statute of limitations. Platforms use those records to settle disputes over who was driving. Hosts benefit from keeping their own copy too. Fleetiqo's Turo Sync, for example, builds a booking history from the Turo confirmation emails already in your inbox, so you have records that don't depend on the platform.
• The platform owns its equipment. If a platform installs a GPS unit or a keyless device, the platform is responsible for it and must hold the owner harmless if it's damaged or stolen.

One caveat on timing: NCOIL re-adopted the model in July 2026, but only until its November 2026 annual meeting "while potential amendments are developed." The template that most of these state laws are copied from could change this month.

What the model leaves out, states fill in on their own: taxes, airport access, local preemption and the size of a "small" host. Those differences are where the money is.

The 50-state table

Status labels used below:

• P2P act: a statute that regulates P2P car sharing directly, almost always based on the NCOIL model.
• Older model: a pre-2019 "personal vehicle sharing" law.
• Insurance only: a law that covers insurance and nothing else.
• Tax only: no regulatory statute, but the state taxes P2P bookings explicitly.
• None: neither.

"State minimum" means the state's minimum auto liability limits. Dates are the year the law was enacted, unless the row says otherwise.

State	Status	Law	What matters for hosts
Alabama	P2P act (in force Oct. 1, 2026)	SB 109 (2026)	State minimum, primary. The 1.5% rental privilege tax applies only if the owner didn't pay sales or use tax on the car, and the platform keeps the owner's certification.
Alaska	Tax only	HB 123 (2025), AS 43.52	Vehicle rental tax is 7% when booked through a platform and 9% otherwise. Platforms with more than 200 Alaska transactions a year collect it. The 7% rate ends July 1, 2028.
Arizona	P2P act	A.R.S. §§ 28-9601 to 9616 (2021)	Platform pays transaction privilege tax. Cities and counties can't add P2P-only taxes. Records kept 6 years.
Arkansas	P2P act	Ark. Code § 27-25-101 et seq. (Act 686 of 2023)	Airports may set rules and fees. The act is silent on taxes.
California	Older model	Cal. Ins. Code § 11580.24 (2010; amended 2024)	Platform assumes the owner's liability. Limits are $45,000/$90,000/$15,000 today and rise to three times the state minimum on Jan. 1, 2031. An owner's annual sharing revenue can't exceed the car's annual costs.
Colorado	P2P act	C.R.S. §§ 6-1-1201 to 1214 (2019)	Platform's commercial policy must be 3× the state minimum. An airport concession agreement is required. The DOR applies its daily rental fee to shares of 24 hours or more.
Connecticut	P2P act	Conn. Gen. Stat. §§ 13b-127 to 127l (2021)	State minimum, primary. Operating at Bradley Airport requires an agreement with the Connecticut Airport Authority.
Delaware	P2P act	21 Del. C. §§ 8601–8614 (2021)	Records kept 4 years. Since 2024, loss-of-use damages can't be collected from drivers or their insurers.
District of Columbia	None	B25-0476 not enacted	No regulatory statute. The tax rate is disputed: the Office of Tax and Revenue has argued for the 10.25% rental-vehicle rate.
Florida	P2P act	Fla. Stat. § 627.7483 (2021)	Platform collects sales tax, plus a $1/day surcharge on Florida-registered shared cars for the first 30 days.
Georgia	P2P act	O.C.G.A. §§ 40-1-220 to 231 (2020)	Standard model-act insurance and recall rules.
Hawaii	P2P act	HRS ch. 279L (2022)	Platform collects general excise tax plus the rental vehicle surcharge. Recalls must be checked within 48 hours before each trip. Records kept 6 years.
Idaho	None	—	No P2P statute in the code.
Illinois	P2P act	815 ILCS 312 (2021)	The program assumes the owner's liability at 4× the state minimum, the highest multiple in the country. Bookings are exempt from the rental tax if the owner paid sales tax on the car.
Indiana	P2P act	IC 24-4-9.2 (2019)	A 2% vehicle sharing excise tax plus sales tax, collected by the platform (DOR bulletin). Records kept 2 years.
Iowa	P2P act (2026)	Iowa Code ch. 537C (HF 2497)	A qualifying platform doesn't have to collect the 5% automobile rental excise tax.
Kansas	P2P act	K.S.A. 8-2801 to 2813 (2021)	P2P sharing is carved out of the rental excise tax definition.
Kentucky	P2P act	KRS 365.520–.528 (2022)	A 6% excise tax on gross receipts, owed by the platform. Platforms also need a state P2P certificate.
Louisiana	P2P act	La. R.S. 22:1300.1–.13 (2020)	The platform counts as a "dealer" for state and local sales tax.
Maine	P2P act	24-A M.R.S. §§ 7401–7406 (2019, rewritten 2021)	Rewritten on the model-act pattern in 2021. The Superintendent of Insurance enforces it.
Maryland	P2P act	Md. Transp. §§ 18.5-101 to 110 (2018)	Sales tax is 8%, or 11.5% if the owner shares more than 10 cars. Cars older than 10 years need a fresh inspection every 10,000 miles. Amendments took effect Oct. 1, 2026.
Massachusetts	None	S.2402 / H.3659 sent to study (2025)	No law. Both 2025 bills ended in study orders.
Michigan	P2P act	MCL 257.2201 et seq. (2024, in force Oct. 17, 2025)	Adds no-fault PIP requirements. Records kept 3 years.
Minnesota	None	SF 2650 stalled	The 2025 bill never left committee.
Mississippi	P2P act	SB 2530 (2024)	Exempt from the U-drive-it privilege tax and from rental-car disclosure rules.
Missouri	P2P act	RSMo 379.1900–.1970 (2025, in force Jan. 1, 2026)	Insurance only in substance. The act says it doesn't affect taxes or airports.
Montana	Tax only	4% rental vehicle tax	Platforms must register and collect. The DOR also describes a split model where the host collects on the base rate.
Nebraska	P2P act	Neb. Rev. Stat. §§ 60-3401 to 3415 (LB 1073, 2024)	Recalls must be checked when a car is enrolled and again before each listing.
Nevada	P2P act	NRS ch. 482C (2021)	A 10% state governmental services fee, plus up to 2% more in Clark and Washoe counties.
New Hampshire	Tax only	RSA 78-A:3, 78-A:6	The 8.5% rentals tax applies to bookings made through a "rental facilitator".
New Jersey	None	S2999 (2024) not enacted	No P2P statute.
New Mexico	None	Bills died in 2019 and 2021	No P2P statute.
New York	P2P act	N.Y. Gen. Bus. Law §§ 900–919 (2021)	Chapter 696 of 2025 replaced the $1.25 million supplemental liability requirement with 3× the state minimum.
North Carolina	P2P act	G.S. 20-280.15 et seq. (2019)	A new 8% tax on P2P rentals since Oct. 1, 2026. Airports may charge fees and designate staging areas.
North Dakota	None	—	No P2P statute found.
Ohio	P2P act	ORC ch. 4516 (2019, in force 2020)	Airports may set standards and fees. A 2026 bill (SB 427) would make P2P rules strictly statewide.
Oklahoma	P2P act	47 O.S. § 1051 et seq. (SB 355, 2021)	Expressly not "renting motor vehicles without drivers" under Oklahoma's rental-car law.
Oregon	Older model	ORS 742.585–.600 (2011)	Program assumes all of the owner's liability. Commercial vehicles are barred. A 2023 rewrite stalled in committee.
Pennsylvania	Insurance only	40 P.S. § 991.2801 et seq. (Act 93 of 2022)	Covers insurance and nothing else.
Rhode Island	None (repealed)	Former ch. 27-8.3	Enacted in 2022, in force April 2023, repealed that June. A 2026 bill was introduced.
South Carolina	P2P act	S.C. Code §§ 56-36-10 to 50 (2025)	Expressly excluded from the state's rental-company laws.
South Dakota	None	—	No P2P statute or bill found.
Tennessee	P2P act	Tenn. Code § 55-12-301 et seq. (2020)	Platform is a marketplace facilitator for sales tax, and the rental surcharge doesn't apply. A written airport agreement is required.
Texas	P2P act	Tex. Bus. & Com. Code ch. 113 (2021)	No platform tax in the statute. A 2025 bill to change that died in committee.
Utah	P2P act	Utah Code §§ 13-48a-101 to 307 (2023)	2.5% rental tax plus the county tourism tax. Records kept only 2 years.
Vermont	None	—	The 9% rental use tax doesn't mention P2P.
Virginia	P2P act	Va. Code §§ 46.2-1408 to 1418 (2020)	A 7% P2P tax for owners with 10 or fewer cars. Owners with more pay rental-car rates. Records kept 5 years.
Washington	P2P act	RCW ch. 46.74A (2022, in force 2023)	Insurance at 2× the state minimum. A separate 9.9% P2P car sharing tax applies in some cases.
West Virginia	P2P act	W. Va. Code § 17A-6F (2020)	Platform collects sales tax. Cities and counties can't license or regulate platforms.
Wisconsin	None (vetoed)	2023 AB 395	Passed by the legislature, vetoed March 2024. The override failed.
Wyoming	None	—	No P2P statute or bill found.

The totals: 36 states have a P2P statute of some kind, 33 of them on the NCOIL pattern. Three more tax P2P bookings explicitly without regulating them. Eleven states and D.C. have neither.

Insurance: "state minimum" isn't one number

Most model-act states require the platform to carry the state minimum and stop there. The exceptions are what matter if you host in more than one state, or plan to:

• Illinois: the program assumes the owner's liability at four times the state minimum, and the driver-side policy must be at least twice the minimum.
• Colorado: the platform's own commercial policy must be three times the minimum.
• Washington: 2× the minimum since its 2022 rewrite. NCSL's page still describes the older 3× rule.
• California: $45,000/$90,000/$15,000 today, moving to 3× the state minimum in 2031.
• New York is the clearest example of a state changing its mind. Its 2021 law stacked a $1.25 million supplemental liability requirement on top of everything else, which made New York far more expensive to insure than its neighbors. Chapter 696 of 2025, signed December 19, removed that layer and set the platform requirement at three times the state's minimums. The change took effect 180 days after signing, in June 2026.

Hosts should take one practical point from this. The coverage that matters is set by the state where the claim happens, not where the car is registered. That's why the model act includes the out-of-state gap rule. If a guest drives your car into a state with higher minimum limits than yours and crashes there, the sharing-period coverage has to make up the difference.

Taxes: where P2P really stopped being a gray zone

Model-act states copied the same insurance language. On taxes, almost no two states agree. Broadly, there are four approaches:

• A dedicated P2P tax. The clearest examples are Virginia's 7% P2P vehicle sharing tax, Indiana's 2% vehicle sharing excise tax, Kentucky's 6% excise, Nevada's 10% fee (plus up to 2% at county level), Washington's 9.9% P2P tax and, from October 2026, North Carolina's 8%.
• The regular rental-car tax. Utah applies its 2.5% motor vehicle rental tax and county tourism tax. Hawaii applies its rental vehicle surcharge. Florida charges $1 a day for the first 30 days.
• Sales tax only, collected by the platform. Louisiana treats the platform as a dealer. Tennessee and West Virginia make it collect sales tax while expressly sparing P2P from rental surcharges.
• An exemption. Illinois exempts P2P bookings from its rental tax if the owner already paid sales tax on the car. Alabama applies the same logic to its rental privilege tax. Iowa doesn't require a qualifying platform to collect its rental excise. Kansas wrote P2P out of its rental excise definition.

Two of the tax-only states, Alaska and New Hampshire, matter for another reason. They show where the momentum is. Neither regulates P2P insurance, but both changed their tax codes so that bookings through a platform are taxed. Alaska's 2025 law charges 7% on platform bookings against 9% for traditional rentals, then closes that gap in 2028.

For hosts, the important part is who collects. In nearly every state above, the law puts collection on the platform, so a typical Turo host never files a P2P tax return. That isn't true everywhere. Montana's revenue department describes an arrangement where the host may collect on the base rental charge while the platform collects on its own fees. And none of this touches income tax, which is always the host's problem.

The rules that change once you have more cars

This section is for hosts running a real fleet rather than sharing a spare car. Several states draw a line based on how many vehicles you share. Cross it and you're taxed like a rental company:

• Virginia: the 7% P2P rate applies only to owners with 10 or fewer shared vehicles. Above that, the regular rental-car tax rates apply.
• Maryland: the line is also more than 10 vehicles. Above it, the sales tax rate on bookings rises from 8% to 11.5%.
• California: the law caps an owner's annual sharing revenue at the car's annual expenses. That cap was designed to keep the "personal vehicle" in "personal vehicle sharing". No other state copied it.

The federal recall rule has its own threshold. The Raechel and Jacqueline Houck Safe Rental Car Act, passed in December 2015 as part of the FAST Act, bars rental companies from renting out a vehicle under an open safety recall until it's fixed. Federal law defines a "rental company" as a business that rents covered vehicles and uses a fleet of 35 or more of them, on average, during the calendar year. Whether a large host on a P2P platform counts as that kind of business hasn't been tested, as far as we can find. What follows is our view, not a legal conclusion: if you run 35 or more cars, assume the federal rule applies. The state P2P laws already impose much the same duty anyway.

Recalls: a duty for the platform, and in practice for you

Nearly every model-act state requires the platform to verify that a car has no unrepaired safety recall before it's listed. The owner then has to keep it off the platform once they receive actual notice of a recall, until the repair is done.

There are variations. Indiana and Colorado give owners 72 hours to delist after a recall notice. Hawaii makes the platform re-check within 48 hours of every trip. Nebraska requires a check both when a car is enrolled and again each time it's offered.

In practice, a host who learns about a recall from a dealer letter weeks after the platform's last check is the one exposed. The NHTSA recall database is public and searchable by VIN. Hosts with more than a few cars usually automate the check rather than relying on mail. Fleetiqo, which publishes this blog, is one way to do it. Its feature list includes a manufacturer recalls checker that looks up open recalls by VIN, and it falls back to NHTSA's public recall data when its commercial data source is unavailable. Whatever tool you use, the legal point is the same: once you have notice, the car shouldn't be bookable.

The states without a law, and why

The no-law states aren't a single group. Some had a law or nearly did.

• Rhode Island passed a model-act statute in 2022. It took effect April 1, 2023, and was repealed less than three months later. Every section of chapter 27-8.3 now reads "[Repealed.]" A new bill was introduced in 2026.
• Wisconsin's legislature passed AB 395 in 2023. The governor vetoed it in March 2024, and the override attempt failed that May.
• Massachusetts and Minnesota each had bills in 2025 that went nowhere. Massachusetts sent both of its bills to study orders.
• New Jersey's S2999 hasn't moved since it was introduced in 2024.
• New Mexico's bills died in 2019 and 2021.

In Idaho, the Dakotas, Vermont and Wyoming, we found no bill at all. D.C. has no regulatory statute but an active argument over which tax rate applies.

"No law" doesn't mean P2P is banned in those places. It means the general rules apply by default: rental-car statutes, insurance law and the tax code, however a court or tax agency chooses to read them. That uncertainty is what the model act was written to end. It's also why platforms keep lobbying for these laws.

What to watch next

Five things could change this table within a year:

1. NCOIL's model act is up for amendment at the council's November 2026 annual meeting. Changes there tend to reach state bills in the following year's sessions.
2. Ohio SB 427 would make P2P regulation a matter of statewide concern, which would preempt local rules.
3. Maryland's 2026 amendments (Chapters 49 and 50) took effect October 1, 2026. They let a driver's own policy satisfy the insurance requirement and extend the program's responsibility to tolls and red-light citations.
4. Oregon and California still run on pre-2019 "personal vehicle sharing" laws. Oregon's 2023 attempt to replace its law with the model act stalled. Expect another try.
5. Taxes, not insurance, are now where the action is. North Carolina's new tax arrived less than a year after Alaska's restructuring. States that currently treat P2P under their general sales tax are likely to be asked the same question.

How we built this table

We started from three secondary lists:

• NCSL's 2020 page.
• Table 6-1 of the 2024 National Academies ACRP airport guide, whose state data is current to November 2023.
• The NCOIL model.

We then checked every state against its current statute, session law, or tax agency guidance, in November 2026. Where an official code site blocked access, we read the enrolled bill or a statute mirror and cross-checked the citation. Some details are still unverified:

• The exact codified sections for Alabama's and Mississippi's acts. The official bill text doesn't assign them.
• Washington's 9.9% tax rests on the Department of Revenue's page, not the 2026 session law itself.
• Connecticut's and Colorado's tax treatment of P2P comes from agency guidance, not statute.

Laws change every session. If you spot something that has changed, tell us and we'll update the table. This is general information about state law, not legal or tax advice for your situation.

Sources

1. National Conference of State Legislatures, Car Sharing: State Laws and Legislation (last updated Jan. 14, 2020) (2020-01)
2. National Council of Insurance Legislators, Peer-to-Peer Car Sharing Program Model Act (re-adopted July 18, 2026) (2026-07)
3. National Academies of Sciences, Engineering, and Medicine (ACRP), Accommodating Peer-to-Peer Carsharing at Airports: A Guide, Table 6-1 (2024)
4. North Carolina Department of Revenue, Sales and Use Tax Directive SD-26-2: New Tax on Peer-to-Peer Vehicle Rentals (2026-07)
5. New York State Senate, S5941-B (2025), signed as Chapter 696 of 2025 (2025-12)
6. New York State Senate, General Business Law Article 40: Peer-to-Peer Car Sharing Programs (2026-11)
7. Virginia General Assembly, Code of Virginia, Title 46.2, Chapter 14.1: Peer-to-Peer Vehicle Sharing (2026-11)
8. Washington Department of Revenue, Peer-to-peer car sharing tax (2026-11)
9. Nevada Department of Taxation, Peer-to-Peer Car Sharing Fee (2026-11)
10. Illinois General Assembly, Car-Sharing Program Act, 815 ILCS 312 (2026-11)
11. Maryland General Assembly, Chapter 50 of 2026 (HB 1186), peer-to-peer car sharing amendments (2026-05)
12. Indiana Department of Revenue, Sales Tax Information Bulletin #47: Vehicle sharing (2026-11)
13. Rhode Island General Assembly, Chapter 27-8.3, Peer-to-Peer Car Sharing Program Act [Repealed] (2026-11)
14. Wisconsin State Legislature, 2023 Assembly Bill 395 (vetoed) (2024-05)
15. Alabama Legislature, SB 109 (2026), enrolled: Peer-to-Peer Car Sharing Program Act (2026-02)
16. Iowa Legislature, 2026 Iowa Acts, Chapter 1020 (HF 2497) (2026-04)
17. Alaska Legislature, HB 123 (2025): vehicle rental tax and rental platforms (2025-07)
18. Montana Department of Revenue, Rental Vehicle Tax (2026-11)
19. Legal Information Institute, Cornell Law School, 49 U.S. Code § 30102: Definitions (rental company) (2026-11)
20. Legal Information Institute, Cornell Law School, 49 U.S. Code § 30120: Remedies for defects and noncompliance (2026-11)