LicensedRental

Hamilton County, Tennessee

East Ridge, TN vacation rental requirements

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.

Checked against official sources November 5, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

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City permit
Required
Reported at first reading in 2018; we couldn’t read the code.Source
Zoning
Not in single-family zones
Duplex, triplex, and commercial zones, as reported.Source
Fees
$75 owner on site / $125 off site
Taxes
9.25% sales tax + 8% occupancy tax

These facts come from 2018 news coverage of the first reading. Confirm fees and zones with the city before you apply.

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 East Ridge

  1. Ask about zoning and the permit

    Off-site owners notified neighbors within 300 feet and posted a sign, and neighbors had 30 days to object, under the rules as reported. Confirm the current process with the city.Source

  2. 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. For direct bookings, file the city and county occupancy tax with the Hamilton County Trustee.Source

House rules for guests

Bedrooms
5 at most, 2 people each
Source
Minimum stay
24 hours
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.