LicensedRental

Montgomery County, Tennessee

Clarksville, TN vacation rental requirements

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.

Checked against official sources November 5, 2026

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City permit
Required for most
Title 5, Ch. 3 (Ord. 1-2020-21). Exempt: one unit only, one room in an owner-occupied home, or under six months a year.Source
Fees
$150, then $120 a year
Nonrefundable application and inspection fee; renewal is due 30 days before the permit expires.Source
Response time
45 minutes
A local contact must be reachable 24/7.Source
Taxes
9.5% sales tax + 10.75% occupancy tax
8% county + 2.75% city occupancy tax.Source

The exemptions come from a 2021 change the city lists on its permit page; the Municode copy of Chapter 3 doesn’t show them yet. Confirm with Revenue & Finance before you skip the permit.

Rentals that were operating before the September 3, 2020 ordinance can keep running without a permit until sold, unused as a rental for 30 months, or cited three times (state Short-Term Rental Unit Act).

The 2.75% city hotel-motel tax passed in 2024; the state’s report shows it from September 1, 2025.

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.

Montgomery County, Tennessee

  1. 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

  2. Then your city

    Inside Clarksville city limits you also need a city permit, unless the city exempts you. Pick your area.

City of Clarksville

  1. Check whether you need a permit

    The city says no permit is needed if you operate only one short-term rental unit, list only one room in a home you live in, or rent the unit less than six months of the calendar year. Everyone else needs a permit before operating or advertising.Source

  2. Get city and county business licenses

    The permit application needs a copy of your City of Clarksville business license; the city’s permit page asks for a county business license too.Source

  3. Apply with Finance and Revenue

    File the sworn, notarized application with a $150 fee, proof of ownership (your recorded deed), proof of insurance, proof your property taxes are paid, a life-safety affidavit, local contact details, and a site plan and floor plan showing every room, bedroom sizes, and parking spaces. A business owner must show it is in good standing with the Secretary of State.Source

  4. Pass the fire and building inspections

    Fire Rescue and Building and Codes each inspect within 15 days of a complete application, and the fire inspection sets your maximum occupancy. You get one re-inspection within 10 days if you fail. The permit lasts one year and can’t be transferred; it ends when you sell.Source

  5. Register for sales and occupancy tax

    Tax on stays here is 9.5% sales tax + 10.75% 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. File the county’s 8% with the Montgomery County Trustee by the 20th. Ask the city where to file its 2.75% on direct bookings.Source

Fees

$150 to apply, $120 a year to renew

Application and inspection$150
Annual renewal$120
Transferring a permitPermits can’t be sold or transferred.$50 a day fine

Fees are non-refundable. Source

Inspection checklist

What the inspector looks for, from City of Clarksville’s published checklist.

  • Smoke alarms (UL 217)In each sleeping room, within 15 feet outside sleeping rooms, and on every story, including basements.Source
  • Carbon monoxide detectorWithin 15 feet of all bedrooms.Source
  • Fire extinguisherOperational.Source

House rules for guests

Parking
1 space per bedroom
Source
Bookings
One party at a time
The main renter must be at least 18. No business use by guests.Source
Advertising
Show the permit number
Source
Posting
Local contact name and phone
Include a no-loud-noise rule in your house rules and lease.Source
Food
No meals served for pay
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.