LicensedRental

Sevier County, Tennessee

Gatlinburg, TN vacation rental requirements

Gatlinburg calls short-term rentals “tourist residences.” Each needs an annual Tourist Residency Permit with a fire and building inspection ($200 for up to 2 bedrooms plus $75 per extra bedroom), a zone that allows them (not R-1A or R-2A), and city and county business licenses. Guests pay 12.75% tax, and the owner pays a 1.25% city gross receipts tax.

Checked against official sources November 5, 2026

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City permit
Tourist Residency Permit, yearly
Includes a fire and building inspection.Source
Permit fee
$200 + $75 per bedroom over 2
Zoning
Not allowed in R-1A or R-2A
Allowed in R-1 (with parking and a site plan), R-2, R-3, C-1, and C-2.Source
Parking
At least 2 on-site spaces
1 space for a one-bedroom; the building official sets more based on sleeping capacity.Source
Taxes
12.75% + 1.25% gross receipts
9.75% sales + 3% city hotel/motel tax on the guest; 1.25% city gross receipts tax paid by the owner.Source

If you buy an existing rental, you’re liable for the seller’s unpaid gross receipts, hotel/motel, and business taxes, and the city won’t tell you whether they’re paid.

The zoning ordinance we read is the city’s posted copy updated through March 2022. Confirm your district with the city.

Airbnb’s Tennessee tax article says it collects state and local sales tax and all local occupancy taxes. It doesn’t mention city gross receipts taxes or business tax, so file those yourself.

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.

Sevier County, Tennessee

  1. Get city and county business licenses

    Gatlinburg’s and Pigeon Forge’s new-business sheets list a $15 county business license from the Sevier County Clerk (865-453-5502) on top of the city license. Outside the cities, ask the Clerk which license applies.Source

  2. Then your city or area

    Permits, inspections, zoning, and occupancy tax differ in every city. Pick your area.

City of Gatlinburg

  1. Confirm your zoning first

    The city says it’s your job to confirm the property is zoned for overnight rentals before you apply. Call Building and Planning at 865-436-7792. Tourist residences aren’t allowed in R-1A or R-2A, or in R-1A planned unit developments.Source

  2. Apply for the Tourist Residency Permit

    List the owner, the rental agent, the unit’s name and location, bedrooms, stories, maximum occupants, and gross square footage. Apply online through CommunityConnect or mail the form and check to City of Gatlinburg, P.O. Box 5, Gatlinburg, TN 37738. The fee pays for the fire and building inspection.Source

    Gatlinburg Tourist Residency Permit →

  3. Get city and county business licenses

    Each costs $15 to apply: the city license from the Finance Department (865-436-1405) and the county license from the Sevier County Clerk (865-453-5502).Source

  4. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus 3% city hotel/motel 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 3% city tax on direct bookings with the Gatlinburg Finance Department by the 20th. You also owe the city’s 1.25% gross receipts tax every month on all rent, including platform bookings; marketplaces don’t remit it.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.