LicensedRental

Tennessee county rules

Johnson County, TN vacation rental rules and taxes

Johnson County charges a 5% county occupancy tax, and Mountain City charges 5%. Most listings are around Butler and Watauga Lake. We found no county short-term rental permit.

Checked against official sources November 5, 2026
County occupancy tax
5%
Sales tax
9% (2% local)
Local rate effective January 1, 2025.Source
Market
About 155 listings
Butler 106, Mountain City 49.Source

What to do

  1. Register for sales and occupancy tax

    Airbnb and VRBO collect both on their bookings. For direct bookings, file sales tax through TNTAP and occupancy tax with the county or city.Source

  2. Then your city

    Pick your area.

Towns

Full guide

Mountain City

We found no short-term rental permit or rules in Mountain City’s code. You owe 9% sales tax + 5% town occupancy tax and need a state business tax license once gross receipts reach $3,000 a year.

Full guide

Unincorporated Johnson

We found no county short-term rental permit for unincorporated Johnson County. You owe 9% sales tax + 5% county occupancy tax and need a state business tax license once gross receipts reach $3,000 a year.

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 Spot something out of date?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.