LicensedRental

Sevier County, Tennessee

Pigeon Forge, TN vacation rental requirements

Pigeon Forge allows tourist residences in R-2 and higher zones with a planning commission site plan. In R-1, only rentals operating and paying tax by August 13, 2018 can continue, with a $300 operating permit ($100 renewal). Big cabins (over 12 guests, 5 bedrooms, 5,000 square feet, or 3 stories) must meet hotel fire rules. Guests pay 12.25% tax, and the owner pays a 1% city gross receipts tax.

Checked against official sources November 5, 2026

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Zoning
R-2 and higher
R-1 is closed to new short-term rentals; R-2 needs a planning commission-approved site plan.Source
R-1 permit
Grandfathered only, $300
For owners renting and remitting tax for 6 of the 12 months before August 13, 2018. $100 yearly renewal; ends on sale.Source
Large cabins
Hotel fire rules
More than 5 sleeping rooms, 12 occupants, 5,000 square feet, or 3 stories: sprinklers, exits, and guardrails as an R-1 (hotel) occupancy; plans need a Tennessee architect or engineer seal.Source
Taxes
12.25% + 1% gross receipts
9.75% sales + 2.5% city lodging tax on the guest; 1% city gross receipts tax paid by the owner.Source

R-1 operating permits must appear in every ad and can’t be transferred; selling the property voids the permit.

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 Pigeon Forge

  1. Check your zoning

    Tourist residences are allowed in R-2 with a site plan approved by the planning commission, which also sets the parking. They’re barred in R-1 except for grandfathered rentals.Source

  2. Plan for the building and fire review

    In zones that allow overnight rentals, plans for any building that is or could be used as a short-term rental must carry a Tennessee architect’s or engineer’s seal. Larger homes must meet hotel sprinkler and exit rules.Source

  3. Get city and county business licenses

    Both cost $15: the city license from Finance (865-429-7309) 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 2.5% city lodging 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 city lodging tax on direct bookings with the City of Pigeon Forge by the 20th (it’s delinquent after the 21st). You also owe the city’s 1% gross receipts tax on your rent.Source

House rules for guests

Maximum guests (R-1 permits)
2 per bedroom + 2, up to 12
Source
Local contact (R-1 permits)
Responds in person within 45 minutes
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.