LicensedRental

Grundy County, Tennessee

Tracy City, TN vacation rental requirements

We couldn’t check Tracy City’s code online and found no short-term rental permit in news or city pages. You owe 9.25% sales tax + 10% occupancy tax and need a state business tax license once gross receipts reach $3,000 a year.

Checked against official sources November 5, 2026

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City rental permit
None found (code not checked)
Taxes
9.25% sales tax + 10% occupancy tax

We couldn’t open Tracy City’s code of ordinances online in November 2026, so we couldn’t check it for short-term rental rules. Ask the Town of Tracy City about zoning and any permit or business license before you list.

Your licensing checklist

In order: the state, the county, then the town.

State of Tennessee

  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.

Grundy County, Tennessee

  1. Register for sales and occupancy tax

    Tax on stays here is 9.25% sales tax plus 5% occupancy tax outside city limits. Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax with the state through TNTAP by the 20th of each month. For direct bookings, ask the Grundy County Clerk where to file the county occupancy tax; we couldn’t confirm the office.Source

  2. Then your city

    Pick your area.

Town of Tracy City

  1. Register for sales and occupancy tax

    Tax on stays here is 9.25% sales tax + 10% occupancy tax. Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax with the state through TNTAP by the 20th of each month. For direct bookings, ask the Town of Tracy City and the Grundy County Clerk where to file the city and county occupancy tax; we couldn’t confirm the office.Source

  2. Ask about zoning

    Ask the Town of Tracy City whether zoning allows a short-term rental at your address. Check your HOA rules too.

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.