LicensedRental

State rules

Tennessee vacation rental license and rules

Tennessee has no state license for vacation homes, but every rental under 90 days owes 7% state sales tax plus the local sales tax, and stays under 30 days owe the city or county occupancy tax. Airbnb and VRBO collect these on their bookings. A 2018 state law protects rentals that were operating before a local ban, but cities and counties can require permits and new rules.

Checked against official sources November 5, 2026
State license
None for private homes
Register for sales tax and business tax with the Department of Revenue instead.Source
Sales tax
7% state + local rate
Rentals under 90 days, including cleaning and booking fees.Source
Occupancy tax
Set by each city or county
Stays under 30 days (the first 30 days of any stay since July 1, 2025).Source
Platforms
Collect sales and occupancy tax
Since 2021, Airbnb, VRBO, and other marketplaces send occupancy tax on their bookings to the state.Source

The Short-Term Rental Unit Act (2018) says a city or county can’t ban a rental that was already operating legally (permitted, or paying taxes for six of the prior 12 months) before the rule took effect. That protection ends if the home is sold, sits unused as a rental for 30 months, or gets three violations. Cities can still require permits, and HOAs and condo boards can ban rentals.

What to do

  1. Register for sales tax

    Register through the Tennessee Taxpayer Access Point (TNTAP). One registration covers all your rentals in the same city or county. If you take direct bookings, collect 7% plus the local rate and file by the 20th of each month. Once registered, file every month, even a $0 return.Source

    TNTAP →

  2. Get a business tax license

    Rentals under 180 days owe business tax. With $3,000 to $100,000 a year in gross receipts in a city or county you need a minimal activity license; at $100,000 or more, a standard license. Booking platforms don’t handle this for you.Source

  3. Know what the platform collects

    Airbnb, VRBO, and other marketplaces collect and remit sales tax and local occupancy tax on their bookings. Keep records showing they did. For direct bookings, you pay sales tax to the state and occupancy tax to the city or county.Source

  4. Then your county and city

    Permits, zoning, and occupancy tax rates are where Tennessee towns differ most. Pick your area.

Counties

63 counties so far, with more added every month. Don’t see yours? Tell us where your rental is.

6 town guides

Anderson County

Anderson County charges a 4% county occupancy tax (since July 2025), and each city has its own. Norris and Rocky Top require city short-term rental permits, and Norris allows them only in commercial zones. We found no county permit.

2 town guides

Bedford County

Bedford County charges a 7% occupancy tax outside Shelbyville, and Shelbyville charges its own 7%. In unincorporated areas, a short-term rental needs a special exception from the county Board of Zoning Appeals.

2 town guides

Benton County

Benton County, a Kentucky Lake county, charges a 5% county occupancy tax, and Camden added a 3% city tax on December 1, 2025. The local sales tax is 2.75% (9.75% total). We found no county or city short-term rental permit in any source we could open.

1 town guides

Bledsoe County

Bledsoe County has a 4% occupancy tax and 9.25% sales tax; Pikeville adds a 4% city tax.

4 town guides

Blount County

Blount County adds a 5% occupancy tax countywide on top of 9.75% sales tax. Townsend started a $250 short-term rental permit and a new 3% city tax in 2026, Maryville’s zoning bans short-term rentals in every district, and the county treats vacation rental cabins as a special exception in its rural zones.

1 town guides

Bradley County

Bradley County has a 7% occupancy tax, one of the higher county rates in the region, and Cleveland adds 4% more. Sales tax is 9.75%.

4 town guides

Campbell County

Campbell County charges a 5% county occupancy tax; LaFollette (4%), Caryville (5%), and Jellico (5%) have their own. We found no county short-term rental permit; Caryville has a city ordinance.

2 town guides

Carter County

Carter County charges a 5% county occupancy tax, and Elizabethton charges 4%. About half the listings are around Roan Mountain and Hampton, near Watauga Lake. We found no county short-term rental permit.

4 town guides

Cheatham County

Cheatham County charges a 5% occupancy tax, and Ashland City and Kingston Springs add 4%. The county zoning resolution has no short-term rental use, and we found no city permits.

1 town guides

Claiborne County

Claiborne County charges a 3% county occupancy tax; Tazewell, Harrogate, and Cumberland Gap add 4%. Norris Lake homes near New Tazewell and Speedwell make up most of the market. Cumberland Gap has a short-term rental ordinance and permit.

2 town guides

Clay County

Clay County, on Dale Hollow Lake, has a 4% occupancy tax (since September 1, 2024) and a 9.75% sales tax. Celina adds no city occupancy tax, and we found no county short-term rental rules.

2 town guides

Cocke County

Cocke County has a busy cabin market around Cosby and adds a 3% occupancy tax to 9.75% sales tax. We found no county short-term rental permit; the county requires a zoning permit for new construction, and Newport adds a 4% city tax.

3 town guides

Coffee County

Coffee County has a 2.5% occupancy tax and 9.75% sales tax. Manchester (home of Bonnaroo) charges a 6% city tax and Tullahoma 5%, with no county tax listed inside those cities.

2 town guides

Cumberland County

Cumberland County has a 7.5% occupancy tax, and Crossville adds 2%. The county has no zoning, and in 2021 the county attorney said no county rule bars short-term rentals; HOAs such as Fairfield Glade’s can.

6 town guides

Davidson County

Davidson County is run by Metro Nashville, which requires a yearly short-term rental permit and bans new non-owner-occupied permits in its residential zones. Belle Meade, Berry Hill, Forest Hills, Goodlettsville, and Oak Hill have their own rules; Forest Hills and Oak Hill ban short-term rentals.

2 town guides

Decatur County

Decatur County, a Kentucky Lake county, charges a 5% county occupancy tax, and Parsons adds 4% more. The local sales tax is 2.5% (9.5% total). We found no county or city short-term rental permit in any source we could open.

2 town guides

DeKalb County

DeKalb County, on Center Hill Lake, has a 5% occupancy tax and a 9.75% sales tax. Smithville adds no city occupancy tax, and we found no county short-term rental rules.

2 town guides

Fentress County

Fentress County, the gateway to the Big South Fork, has a 5% occupancy tax and a 9.5% sales tax. Jamestown adds no city occupancy tax, and we found no county short-term rental rules.

4 town guides

Franklin County

Franklin County has a 7% occupancy tax and 9.25% sales tax. Decherd and Estill Springs add 4% city taxes; Winchester and the Franklin part of Monteagle charge a 5% city tax with no county tax in the state’s report.

2 town guides

Grainger County

Grainger County charges a 5% county occupancy tax (since October 2021), and Bean Station charges 5%. We found no county short-term rental permit.

2 town guides

Greene County

Greene County has a 7% county occupancy tax, and its county commission voted to require permits, inspections, and parking rules for short-term rentals outside city limits. Greeneville adds a 4% city tax.

5 town guides

Grundy County

Grundy County, on the South Cumberland Plateau, has a 5% occupancy tax and 9.25% sales tax. Tracy City and the Grundy part of Monteagle add 5% city taxes, and Altamont and Beersheba Springs add 4%.

2 town guides

Hamblen County

Hamblen County charges a 5% county occupancy tax, and Morristown charges 7%. We found no short-term rental permit in Morristown’s code.

8 town guides

Hamilton County

Hamilton County adds a 4% occupancy tax, and most of its cities add another 4%; sales tax is 9.25% everywhere. Chattanooga, Red Bank, Collegedale, Soddy-Daisy, and East Ridge require their own permits, and the county requires a permit, an inspection, and at least an acre of land in the unincorporated areas.

2 town guides

Hardin County

Hardin County, home to the Pickwick Lake rental market around Counce, charges a 5% county occupancy tax, and Savannah adds 5% more. The local sales tax is 2.75% (9.75% total). We found no county or city short-term rental permit in any source we could open.

2 town guides

Henry County

Henry County, a Kentucky Lake county, charges a 5% county occupancy tax, and Paris adds 4% more. The local sales tax is 2.75% (9.75% total). We found no county or city short-term rental permit in any source we could open.

3 town guides

Humphreys County

Humphreys County, on Kentucky Lake, charges a 3% occupancy tax countywide and 9.75% sales tax. We found no county or city short-term rental permit.

3 town guides

Jefferson County

Jefferson County has required a county short-term rental permit outside city limits since November 1, 2025 ($250, renewed yearly), and adds a 4% occupancy tax to 9.75% sales tax. Dandridge runs its own permit.

2 town guides

Johnson County

Johnson County charges a 5% county occupancy tax, and Mountain City charges 5%. Most listings are around Butler and Watauga Lake. We found no county short-term rental permit.

3 town guides

Knox County

Knox County adds a 5% occupancy tax (filed with the County Clerk) to 9.25% sales tax. Knoxville requires a short-term rental permit and limits non-owner-occupied rentals to non-residential zones, and Farragut bans new short-term rentals.

3 town guides

Loudon County

Loudon County adds a 5% occupancy tax to 9% sales tax (Lenoir City and Loudon add their own). We found no county short-term rental permit; around Tellico Village, the property owners’ association rules matter most.

1 town guides

Madison County

Madison County and Jackson share one 5% occupancy tax, remitted to the Madison County Trustee, and the local sales tax is 2.75% (9.75% total). We found no short-term rental permit in Jackson’s online code.

3 town guides

Marion County

Marion County has a 5% occupancy tax and 9.75% sales tax. Jasper adds a 4% city tax; Kimball and the Marion part of Monteagle charge only a 5% city tax.

4 town guides

Maury County

Maury County charges a 5% occupancy tax, and its cities add their own. Columbia allows new short-term rentals only in three urban zones, and Spring Hill requires a yearly city permit.

2 town guides

Meigs County

Meigs County sits between Watts Bar and Chickamauga lakes. It has a 5% occupancy tax and the region’s lowest sales tax, 9%.

5 town guides

Monroe County

Monroe County adds a 5% occupancy tax to 9.25% sales tax, and Tellico Plains, Madisonville, and Sweetwater each add 4%. We found no short-term rental permits in the county or in the town codes we could read; the market centers on Tellico Plains and the Cherohala Skyway.

2 town guides

Montgomery County

Montgomery County charges an 8% occupancy tax, paid to the County Trustee on direct bookings. Clarksville adds 2.75% and requires a city permit for most short-term rentals.

1 town guides

Moore County

Moore County is a combined city-county government (Lynchburg, Moore County). It charges a 3% occupancy tax, with another 3% in Lynchburg. We found no short-term rental permit.

1 town guides

Morgan County

Morgan County charges a 5% county occupancy tax, and Wartburg added a 4% town tax in April 2026. We found no county short-term rental permit.

1 town guides

Obion County

Obion County, home to part of Reelfoot Lake, charges a 4% county occupancy tax, and Union City, Samburg, and South Fulton each add 5%. The local sales tax is 2.75% (9.75% total). We found no county or city short-term rental permit in any source we could open.

2 town guides

Overton County

Overton County has a 5% occupancy tax and a 9.5% sales tax, and Livingston adds a 4% city occupancy tax. We found no county short-term rental rules.

3 town guides

Perry County

Perry County, on the Tennessee and Buffalo rivers, charges a 5% occupancy tax countywide and 9.5% sales tax. We found no county or city short-term rental permit.

2 town guides

Pickett County

Pickett County, on Dale Hollow Lake, has a 3.5% occupancy tax (new rate from January 1, 2026) and a 9.75% sales tax. We found no county short-term rental rules.

3 town guides

Polk County

Polk County’s whitewater and national forest draw a busy cabin market. County occupancy tax is 3% and sales tax 9.75%; Copperhill added a 3% city tax in June 2026.

4 town guides

Putnam County

Putnam County has a 7% occupancy tax, and Cookeville and Monterey each add 3%. Cookeville requires a yearly short-term rental permit and allows rentals only in certain zoning districts; we found no county rules.

3 town guides

Rhea County

Rhea County has a 5% occupancy tax and 9.75% sales tax; Dayton and Spring City add 4% city taxes. The county assessor has said short-term rentals are assessed for property tax at the 40% commercial ratio, not 25% residential.

3 town guides

Roane County

Roane County requires a yearly county Short-Term Rental Operating Permit ($200, then $150 to renew) with fire and building inspections. It charges a 4% county occupancy tax (since July 2025); Kingston (5%), Harriman (7%), and Rockwood (4%) add city rates.

4 town guides

Rutherford County

Rutherford County charges a 5% occupancy tax on short-term rentals, filed with the County Clerk, and asks hosts to get county and city business licenses ($15 each). City occupancy taxes are added on top: 10% total in Murfreesboro and 7.5% in Smyrna. We found no city short-term rental permits in Murfreesboro, Smyrna, or La Vergne.

2 town guides

Scott County

Scott County charges a 5% county occupancy tax; Oneida (since February 2025) and Huntsville (since February 2023) add 4%. We found no county short-term rental permit.

1 town guides

Sequatchie County

Sequatchie County has a 4% occupancy tax; Dunlap added a 4% city tax in April 2026. Sales tax is 9.25% in the county and 9.75% in Dunlap.

5 town guides

Sevier County

Sevier County is Tennessee’s biggest vacation-rental market. Outside the cities, every short-term rental needs a yearly county fire-safety permit and inspection; Gatlinburg, Pigeon Forge, Sevierville, and Pittman Center each run their own permits and inspections and set their own occupancy taxes.

6 town guides

Shelby County

Shelby County charges a 5% occupancy tax countywide, filed with the County Clerk, and requires a county permit for short-term rentals outside city limits. Memphis and Bartlett have permit systems, while Germantown bans stays under 30 days in residential zones and Collierville bans short-term rentals in every zoning district.

2 town guides

Stewart County

Stewart County, home to Land Between the Lakes and Lake Barkley, charges a 5% occupancy tax countywide. We found no county or city short-term rental permit.

4 town guides

Sullivan County

Sullivan County charges a 4% county occupancy tax (since August 2023), and Kingsport (7%) and Bristol (5%) add city rates. We found no short-term rental permit in the county zoning resolution or in either city’s code.

3 town guides

Sumner County

Sumner County has a 5% occupancy tax. Hendersonville allows short-term rentals only in two commercial zones, and Gallatin is rewriting its zoning code with a proposed permit system.

2 town guides

Unicoi County

Unicoi County charges a 5% county occupancy tax, and Erwin charges 4%. We found no short-term rental permit in Erwin’s code.

1 town guides

Union County

Union County charges a 5% county occupancy tax, and Maynardville added a 4% town tax in November 2024. We found no county short-term rental permit.

2 town guides

Van Buren County

Van Buren County, home of Fall Creek Falls State Park, has a 7% occupancy tax and a 9.75% sales tax. Spencer adds no city occupancy tax, and we found no county short-term rental rules.

2 town guides

Warren County

Warren County has a 5% occupancy tax, and McMinnville adds 5%. McMinnville treats short-term rentals as hotels that need a city business license; we found no county rules.

3 town guides

Washington County

Washington County charges a 4% county occupancy tax (since August 2024). Johnson City (7%) and Jonesborough (5%) have their own rates. We found no short-term rental permit in either city’s code.

2 town guides

White County

White County has a 5% occupancy tax, and Sparta added a 4% city occupancy tax on October 1, 2025. Sales tax is 9.25% outside Sparta and 9.75% inside it; we found no county short-term rental rules.

6 town guides

Williamson County

Williamson County cities set very different rules. Franklin allows new short-term rentals only when the owner lives on the lot, Brentwood bars rentals under three months in single-family homes under a pre-2014 rule state law preserves, Nolensville treats short-term rentals as a commercial lodging use, and Thompson’s Station requires a town permit. Spring Hill is covered on our Maury County page.

3 town guides

Wilson County

Wilson County has a 5% occupancy tax. In unincorporated areas, the Board of Zoning Appeals approves short-term rentals case by case for a set term (two-acre minimum and a caretaker within 10 miles). Mt. Juliet allows them only in RM-16 zoning with a city permit.

Sources

A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.