LicensedRental

Tennessee county rules

Rhea County, TN vacation rental rules and taxes

Rhea County has a 5% occupancy tax and 9.75% sales tax; Dayton and Spring City add 4% city taxes. The county assessor has said short-term rentals are assessed for property tax at the 40% commercial ratio, not 25% residential.

Checked against official sources November 5, 2026
County occupancy tax
5%
Sales tax
9.75%
Market
About 110 listings
Spring City 67, Dayton 45.Source

In 2023 the property assessor said rentals on the tax roll are assessed at 40% (commercial) rather than 25% (residential). Ask the assessor how your home is classified.

What to do

  1. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus 5% occupancy tax outside city limits. 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. For direct bookings, ask the Rhea County Clerk where to file the county occupancy tax; we couldn’t confirm the office.Source

  2. Then your city

    Pick your area.

Towns

Full guide

Dayton

We couldn’t check Dayton’s code online and found no short-term rental permit in news or city pages. You owe 9.75% sales tax + 9% occupancy tax and need a state business tax license once gross receipts reach $3,000 a year.

Full guide

Spring City

We couldn’t check Spring City’s code online and found no short-term rental permit in news or city pages. You owe 9.75% sales tax + 9% occupancy tax and need a state business tax license once gross receipts reach $3,000 a year.

Full guide

Unincorporated Rhea

We found no county short-term rental permit for unincorporated Rhea County, but we couldn’t check the county zoning resolution online. You owe 9.75% sales tax + 5% occupancy tax.

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 Spot something out of date?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.