LicensedRental

Hamilton County, Tennessee

Signal Mountain, TN vacation rental requirements

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.

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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Town permit
Required
Permit ordinance and zoning amendment, set for final vote June 10, 2019.Source
Maximum guests
8
Taxes
9.25% sales tax + 8% occupancy tax
4% town + 4% county (town tax since August 2022).Source

Our source is 2019 news coverage; the town has discussed raising fees since. Confirm everything with the town 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.

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.

Town of Signal Mountain

  1. Ask the town about zoning and the permit

    We couldn’t read the town code online. Ask Town Hall which zones allow short-term rentals, whether the owner must live there, and the current fee.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, ask the town where to file its 4%; the county 4% goes to the Hamilton County Trustee.Source

House rules for guests

Minimum stay
24 hours
Source
Parking
Adequate parking required
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.