Hamilton County, Tennessee
Red Bank, TN vacation rental requirements
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.
Checked against official sources November 5, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
Operating without a permit is a $100 civil penalty per day, and listing a property online is presumed to be operating. Three violations in 12 months can cost the permit. Permits don’t transfer to a new owner.
We couldn’t read Red Bank’s zoning ordinance to see which districts allow short-term rentals. Ask the city before you buy.
Your licensing checklist
In order: the state, the county, then the town.
State of Tennessee
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
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
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
Then your county and city
Permits, zoning, and occupancy tax rates are where Tennessee towns differ most. Pick your area.
Hamilton County, Tennessee
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
Then your city
Permits differ a lot from city to city. Pick your area.
City of Red Bank
Apply to the city manager’s office
Apply under oath with owner and agent contacts, your business license number, your hotel-motel tax registration, a scaled site plan with parking, a narrative (rooms, guests, days of operation, trash), a code verification form, and proof of insurance.Source
Post the notice sign
The city mails letters to owners within 300 feet. Post the city’s sign at the street for at least 15 days. If anyone objects, the city holds a hearing within 45 days.Source
Name a rental agent
Someone usually present in Hamilton County who can reach the property within two hours of a call from the city.Source
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, the Hamilton County Trustee oversees Red Bank’s occupancy tax.Source
Fees
| Application, owner-occupied | $75 |
|---|---|
| Application, not owner-occupied | $125 |
| Annual renewal and inspection | $100 |
| Reinstatement after suspension | $50 |
House rules for guests
Sources
- Taxation of short-term vacation rentals · Tennessee Department of Revenue
- SUT-48: Short-term rentals, reporting requirements · Tennessee Department of Revenue
- Hamilton County Trustee · Hamilton County Trustee
- Code section · City of Red Bank (Municode)
- Local occupancy tax rates report (updated November 4, 2026) · Tennessee Department of Revenue
- Local sales tax rates map and data report · Tennessee Department of Revenue
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.