LicensedRental

Tennessee county rules

Knox County, TN vacation rental rules and taxes

Knox County adds a 5% occupancy tax (filed with the County Clerk) to 9.25% sales tax. Knoxville requires a short-term rental permit and limits non-owner-occupied rentals to non-residential zones, and Farragut bans new short-term rentals.

Checked against official sources November 5, 2026
Market
About 1,200 Airbnb listings
Knoxville 1,162, Powell 32, Farragut 27 (AirROI).Source
Sales tax
9.25%
7% state + 2.25% local.Source
County occupancy tax
5%
Applies in Knoxville and unincorporated areas; not in Farragut.Source

What to do

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    Pick your area.

Towns

Full guide

Farragut

Farragut’s zoning prohibits short-term rental units (rented for less than 30 days) in every zoning district. Only rentals the town recognizes as operating legally before May 17, 2018 keep state grandfather protection.

Full guide

Knoxville

Knoxville requires a yearly short-term rental permit from the Business License & Tax Office. In residential zones only owner-occupied homes qualify (Type 1, $70, one per owner); non-owner-occupied rentals (Type 2, $120, two per operator) are limited to non-residential districts such as downtown. Occupancy is capped at 12 and tax is 18.25%.

Full guide

Unincorporated Knox County

We found no short-term rental permit or rules in the Knox County code. You owe 14.25% tax (9.25% sales plus the 5% county occupancy tax, filed with the County Clerk) and 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 Spot something out of date?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.