LicensedRental

Hamilton County, Tennessee

Unincorporated Hamilton, TN vacation rental requirements

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.

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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County permit
Required, after inspection
Use and occupancy permit from Development Services, posted inside and outside.Source
Minimum lot
1 acre (residential zones)
Agricultural zones need 2 to 2½ acres and a 50-foot buffer; existing rentals were not affected.Source
Taxes
9.25% sales tax + 4% occupancy tax

The county’s full STVR rules are in Resolutions 423-27 and 423-39 (April 2023), which we couldn’t open. Ask about the permit fee and renewal.

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.

Hamilton County (unincorporated areas)

  1. Check your lot size

    Resolution 724-11 bars new rentals on residential lots under one acre. For agricultural land, the resolution text says 2½ acres but news reports say the commission kept 2 acres. Ask Development Services.Source

  2. Apply and request an inspection

    Apply through OpenGov and request an inspection. Expect checks of house numbers (4 inches), interconnected hardwired smoke alarms, a fire extinguisher on every level, rescue windows in each bedroom, stairs, railings, and decks.Source

  3. Name a contact and post the permit

    The contact on the permit must be able to reach the home within two hours. Post an 8×11 permit outside where it can be seen from the street.Source

  4. Get a county business license

    Apply with the Hamilton County Clerk.Source

  5. Register for sales and occupancy tax

    Tax on stays here is 9.25% sales tax plus 4% county 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 county 4% for direct bookings with the Hamilton County Trustee by the 20th of each month.Source

Fees

The checklist lists only the re-inspection fee; ask about the permit fee.

Re-inspection after a failed inspection$250

Source

Inspection checklist

What the inspector looks for, from Hamilton County (unincorporated areas)’s published checklist.

  • Interconnected smoke alarmsIn bedrooms, halls to exits, every story, and garages; no battery-only alarms.Source
  • Fire extinguisher on every level2A:10BC minimum; sign if not in plain view.Source
  • Rescue window in each bedroom20" wide, 24" tall, 5.7 sq ft opening; sill no higher than 44".Source
  • Garage separation and self-closing doors

House rules for guests

Parking
On site, 1 space per 2 guests
No parking on the street or right-of-way.Source
Pets
Leashed or fenced
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.