LicensedRental

Hamilton County, Tennessee

Chattanooga, TN vacation rental requirements

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.

Checked against official sources November 5, 2026

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City certificate
Required, renewed yearly
From the Development Review and Permitting Division (§38-87). Show the certificate number in every listing.Source
Absentee (not your home)
Mixed-use and commercial zones that allow a hotel
Also parcels of 20+ acres in common ownership that allow residential use. The city lists C-C, C-R, C-MU1, C-MU2 and form-based CC, CX, IX, RF, RV, SH.Source
Homestay (your primary home)
Residential zones in the STVR overlay
Plus those commercial and mixed-use zones. You must live there at least 183 days a year.Source
Fees
$250 homestay / $500 absentee
Same amount each year to renew. Nonrefundable.Source
Taxes
9.25% sales tax + 8% occupancy tax
4% city + 4% county occupancy.Source

Three documented violations can cost the certificate after a hearing, and a revoked certificate bars a new one at that property for a year. Renewal must be filed at least 30 days before expiration; a certificate more than 30 days expired can’t be renewed.

STVRs aren’t allowed in Affordable Housing PILOT properties, and a lot can rent the main house or an accessory unit, not both. The overlay map is kept by the City Council Clerk and was enlarged in June 2024 and October 2025.

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.

Hamilton County, Tennessee

  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.

City of Chattanooga

  1. Check your zoning and the overlay

    Use the city’s STVR zoning map. If the home isn’t your primary residence, it must be in a zone that allows a hotel. A rezoning doesn’t help right away: you can’t apply for an absentee certificate for 18 months after it takes effect.Source

    Chattanooga STVR page →

  2. Apply in OpenGov

    Apply under oath with a code compliance verification form, deed, proof of insurance, and escape plans. Answer staff within 60 days or the application lapses; review takes about 30 days.Source

    OpenGov application →

  3. Pass inspections (absentee)

    For absentee rentals the city sends the Fire Marshal and a building inspector. Homestay owners must prove residency every year at renewal.Source

  4. Name a rental agent

    One agent, 18 or older, available 24/7 and able to reach the property within two hours of a call from the city.Source

  5. Register for sales and occupancy tax

    Tax on stays here is 9.25% sales tax plus 8% 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. File the city and county occupancy tax for direct bookings with the Hamilton County Trustee by the 20th of each month.Source

Fees

$250 a year for a homestay, $500 a year for an absentee rental

Homestay application$250
Homestay renewal$250
Absentee application$500
Absentee renewal$500

Source

House rules for guests

Bedrooms
5 at most
Source
Maximum guests
2 per bedroom + 2
Bedrooms over 210 sq ft: area ÷ 70, plus 2. Post the limit in the unit.Source
Minimum stay
24 hours
Source
Parking
Adequate on-site parking
Not on vegetated areas, as a general rule.Source
Posting
Certificate, max occupancy, and owner or agent phone
Source
Multi-unit buildings
STVRs capped at 25% of units
Source

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.