LicensedRental

Monroe County, Tennessee

Sweetwater, TN vacation rental requirements

Sweetwater tax on stays is 18.75% (9.75% sales + 4% city + 5% county occupancy tax). We couldn’t read Sweetwater’s zoning ordinance online, so we haven’t verified whether it limits short-term rentals.

Checked against official sources November 5, 2026

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City rental rules
Not verified
We couldn’t open the zoning ordinance.Source
Taxes
18.75%
9.75% sales + 4% city + 5% county occupancy taxSource

Sweetwater’s zoning was moved out of its municipal code (Ordinance 1044) and isn’t posted online, so we couldn’t check it.

Part of Sweetwater lies in McMinn County; the state lists the same 4% city and 5% county rates there.

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.

Monroe County, Tennessee

  1. Then your city or area

    Pick your area.

City of Sweetwater

  1. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus 4% city and 5% 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 City Hall (423-337-6979) where to file the city tax on direct bookings.Source

  2. Ask about zoning

    Ask the City of Sweetwater whether zoning allows a short-term rental at your address and whether you need a city business license. Check your HOA rules too.

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.