LicensedRental

Tennessee county rules

Decatur County, TN vacation rental rules and taxes

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.

Checked against official sources November 5, 2026
County occupancy tax
5%
Local sales tax
2.5%
9.5% total.Source
Market
Small lake market
About 14 listings around Parsons in a 2025 sample.Source

Decaturville has no city occupancy tax in the state’s report, so only the county 5% applies there (9.5% sales tax).

What to do

  1. Register for the county occupancy tax

    Airbnb says it collects all local occupancy taxes in Tennessee on its bookings. For direct bookings, ask the county clerk which office takes the 5% county tax.Source

  2. Then your area

    Pick your area.

Towns

Full guide

Parsons

We couldn’t find a short-term rental permit for Parsons in any source we could open, and its current code isn’t online. You owe 9.5% sales tax and 9% (5% county + 4% city) occupancy tax, and need a state business tax license once gross receipts reach $3,000 a year.

Full guide

Unincorporated Decatur

We couldn’t find a short-term rental permit for Unincorporated Decatur in any source we could open, and its current code isn’t online. You owe 9.5% sales tax and 5% occupancy tax, and need a state business tax license once gross receipts reach $3,000 a year.

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 Spot something out of date?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.