LicensedRental

Jefferson County, Tennessee

Unincorporated Jefferson County, TN vacation rental requirements

Since November 1, 2025, every short-term rental outside city limits needs a Jefferson County permit from the County Clerk: $250 to apply, $200 a year to renew, with a county business license, insurance, a codes inspector’s affidavit, and a septic capacity letter. Tax is 13.75%.

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
$250, then $200 a year
Valid 12 months; renew in the month first issued. $50 a day for operating without one.Source
Maximum guests (septic)
3 per bedroom, up to 12
2 per bedroom plus 1 per bedroom on a standard septic system; other systems set by the operator and Environmental Health.Source
Local representative
Within 2 hours
Reachable 24/7 and responds within two hours.Source
Taxes
13.75%
9.75% sales + 4% county occupancy tax.Source

Rules here come from the proposed resolution in the September 2025 committee packet and the county’s November 2025 forms. Confirm the final version with the County Clerk.

A county permit doesn’t override deed restrictions or HOA covenants, which are common around Douglas Lake.

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.

Jefferson County, Tennessee

  1. Then your city or area

    Pick your area.

Jefferson County (unincorporated areas)

  1. Gather the documents

    Proof of ownership and paid property taxes, a county business license, a certificate of insurance, a concept plan showing the building, parking, and guest access, a floor plan narrative, Environmental Health’s letter on how many bedrooms your septic or sewer serves, a Tennessee certified codes inspector’s affidavit, and the life-safety form.Source

    Jefferson County application (PDF) →

  2. Use the grandfathered form if you rented before

    Rentals operating before the program use the grandfathered application, with an active business license and proof of past rentals. They still need a permit.Source

  3. Register for sales and occupancy tax

    Tax on stays here is 9.75% 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. Ask the Jefferson County Clerk where to file the county tax on direct bookings.Source

House rules for guests

Parking
On site, paved or gravel only
No parking on grass.Source
Posting
Permit, contact, maximum guests and vehicles
Post inside; the maximum occupancy also goes in every ad.Source
Signs
One sign up to 2 by 2 feet
With the representative’s name and number.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.