LicensedRental

Tennessee county rules

Hamilton County, TN vacation rental rules and taxes

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.

Checked against official sources November 5, 2026
County occupancy tax
4%
Filed with the Hamilton County Trustee for direct bookings.Source
Sales tax
9.25%
7% state + 2.25% local, countywide.Source
Market
About 1,300 Airbnb listings
Chattanooga 1,081, plus Signal Mountain, Soddy-Daisy, East Ridge, Collegedale, Ooltewah, and Harrison (AirROI).Source

Lookout Mountain, Walden, and Lakesite levy no occupancy tax in the state’s report, and Ridgeside has only the county 4%.

What to do

  1. Register for the county occupancy tax

    For direct bookings, file the county’s 4% with the Hamilton County Trustee by the 20th of each month. The Trustee also handles the Chattanooga, East Ridge, Collegedale, and Red Bank city taxes.Source

  2. Then your city

    Permits differ a lot from city to city. Pick your area.

Towns

Full guide

Chattanooga

Chattanooga requires a yearly short-term vacation rental certificate. Non-owner-occupied (absentee) rentals are allowed only in mixed-use and commercial zones that allow a hotel; owner-occupied (homestay) rentals are also allowed in residential zones inside the city’s STVR overlay district. Tax is 9.25% sales plus 8% occupancy.

Full guide

Collegedale

Collegedale requires a short-term rental operation permit ($300, then $100 a year) and a city inspection for any home rented for less than 30 days. Tax is 9.25% sales plus 8% occupancy.

Full guide

East Ridge

East Ridge requires a short-term vacation rental permit. Its 2018 rules kept rentals out of single-family zones and set permit fees of $75 (owner on site) or $125 (owner off site), with neighbor notice for off-site owners. Tax is 9.25% sales plus 8% occupancy.

Full guide

Lookout Mountain

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

Full guide

Red Bank

Red Bank requires a short-term rental permit from the city manager’s office, allows rentals only in zoning districts that expressly permit them, and mails notice to owners within 300 feet, who have 30 days to object. Tax is 9.25% sales plus 8% occupancy.

Full guide

Signal Mountain

Signal Mountain set a short-term rental permit and zoning rules for a final vote in June 2019, with a limit of eight guests. Tax is 9.25% sales plus 8% occupancy.

Full guide

Soddy-Daisy

Soddy-Daisy treats short-term rentals as home occupations and requires a yearly permit ($500, then $200 to renew) from the building inspector, with a contact who can respond within 45 minutes and an annual fire inspection. Tax is 9.25% sales plus 8% occupancy.

Full guide

Unincorporated Hamilton

Unincorporated Hamilton County requires a short-term vacation rental permit from Development Services after a building inspection. Since July 2024 new rentals need at least one acre in residential zones and more land in agricultural zones. Tax is 9.25% sales plus 4% occupancy.

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.