Tennessee county rules
Montgomery County, TN vacation rental rules and taxes
Montgomery County charges an 8% occupancy tax, paid to the County Trustee on direct bookings. Clarksville adds 2.75% and requires a city permit for most short-term rentals.
Checked against official sources November 5, 2026What to do
Pay the county occupancy tax on direct bookings
File the Trustee’s hotel/motel occupancy tax report with your payment by the 20th of the month after you collect it, with a copy of your state sales tax return. Interest and penalty each run at 12% a year after the due date. Bookings through Airbnb, VRBO, and other marketplaces are remitted through the state, and the Trustee no longer takes monthly payments for those.Source
Then your city
Inside Clarksville city limits you also need a city permit, unless the city exempts you. Pick your area.
Towns
Clarksville
Clarksville requires a city operating permit, with fire and building inspections, for each short-term rental (under 30 days), unless you run only one unit, rent one room in your own home, or rent under six months a year. Taxes are 9.5% sales tax plus 10.75% occupancy tax.
Full guideUnincorporated Montgomery
We found no county short-term rental permit for unincorporated Montgomery County. You owe 9.5% sales tax + 8% occupancy tax and need a state business tax license once gross receipts reach $3,000 a year.
Sources
- Hotel/motel occupancy tax reporting · Montgomery County Trustee
- Local occupancy tax rates report (updated November 4, 2026) · Tennessee Department of Revenue
- Sales tax rate table, fourth quarter 2026 · Tennessee Department of Revenue
- Tennessee Airbnb market data (active listings, 12 months to September 2026) · AirROI
- Short term rentals · Montgomery County Trustee
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 Spot something out of date?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.