LicensedRental

Sevier County, Tennessee

Sevierville, TN vacation rental requirements

Sevierville requires an annual Short-Term Rental Operational Permit with a fire department life-safety inspection and proof of insurance. Rentals aren’t allowed in low-density residential (LDR) zones and need neighbor notice in MDR. Rentals sleeping more than 12 need sprinklers. Tax is 12.75%.

Checked against official sources November 5, 2026

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City permit
Operational permit, yearly
Applied for online; Planning reviews, then the Fire Department inspects.Source
Zoning
Not allowed in LDR
Permitted in AR, HDR, TC, IC, TCL, VA, and MPD; on review in MDR and HRO; time-shares only in AC.Source
Sprinklers
Required over 12 guests
Taxes
12.75%
9.75% sales + 3% city lodging tax.Source

Rentals that reach 13 or more occupants, more than 3 stories, or more than 5,000 square feet lose the state’s sprinkler exemption for one- and two-family homes. The occupant load must be posted.

We didn’t find the permit fee on the city’s pages. Ask the Fire Department.

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 Sevierville

  1. Check your zoning

    In MDR, the city notifies owners within 100 feet at least 21 days before the planning commission meeting; with no objection, staff can approve, otherwise the planning commission decides after a hearing. In HRO, the home must be on a collector or arterial street.Source

  2. Apply for the operational permit

    Apply through MGO Connect (Planning and Zoning, then “Short-term Rental”) with the required documents. Planning reviews the application in one to two weeks; then you pay the fee, show current insurance, and schedule the fire inspection.Source

    Sevierville short-term rentals →

  3. Prepare for the fire inspection

    Interconnected smoke alarms on every level and in every sleeping area, a tagged 5-pound 2A:10BC extinguisher on every level, an egress window or door in every sleeping room, a 4-inch address number visible from the street, and a labeled hot tub disconnect at least 5 feet away. Grills and fire pits must be approved by the inspector.Source

  4. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus 3% 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 tax on direct bookings online with the City of Sevierville (hospitality tax, 865-453-5504). The city also requires a $15 business license.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.