LicensedRental

Tennessee county rules

Shelby County, TN vacation rental rules and taxes

Shelby County charges a 5% occupancy tax countywide, filed with the County Clerk, and requires a county permit for short-term rentals outside city limits. Memphis and Bartlett have permit systems, while Germantown bans stays under 30 days in residential zones and Collierville bans short-term rentals in every zoning district.

Checked against official sources November 5, 2026
County occupancy tax
5% countywide
Includes short-term rental units; filed with the County Clerk by the 20th.Source
Local sales tax
2.25% county, 2.75% in cities
Total 9.25% outside cities and 9.75% in Memphis and the suburbs.Source
Market
About 1,750 Airbnb listings
Memphis 1,733 and Lakeland 18 (AirROI, 12 months to October 2026).Source

Arlington (5% city occupancy tax) and Millington (3%) have no page yet: we found no short-term rental rules for them in any source we could open. Ask city hall before you list.

In June 2026 Memphis and Shelby County began sending warning letters to unregistered rentals and said registration is moving to the Division of Planning and Development.

What to do

  1. Know who collects the county 5%

    Airbnb says it collects all local occupancy taxes in Tennessee on its bookings. For direct bookings, file the 5% county tax with the Shelby County Clerk by the 20th of each month.Source

  2. Then your city

    City rules differ a lot: Memphis and Bartlett issue permits, while Germantown and Collierville ban short-term stays in homes. Pick your area.

Towns

Full guide

Bartlett

Bartlett allows short-term rentals in residential zones only in the owner’s own home, with a yearly Type 1 permit from Code Enforcement ($75, then $50 to renew), an inspection, and a limit of 10 guests. Taxes are 9.75% sales tax and 10% occupancy tax (5% county + 5% city).

Full guide

Collierville

Collierville’s zoning code prohibits short-term rentals in every zoning district. Taxes on lodging are 9.75% sales tax and 10% occupancy tax (5% county + 5% town).

Full guide

Germantown

Germantown bans stays under 30 days in homes in every residential and Old Germantown zoning district. Where lodging is allowed, taxes are 9.75% sales tax and 10% occupancy tax (5% county + 5% city).

Full guide

Lakeland

News reports in fall 2023 said Lakeland’s Board of Commissioners moved to prohibit short-term rentals, with existing ones phased out over about 30 months. Confirm the current rule with the city before you list; lodging taxes are 9.75% sales tax and 10% occupancy tax.

Full guide

Memphis

Memphis requires a city permit for each short-term rental, with a $300 application fee, a $150 yearly renewal, $1 million in insurance, a responsible party within 50 miles, and the permit number in every listing. Taxes are 9.75% sales tax, 8.5% occupancy tax (5% county + 3.5% city), and $2 a night.

Full guide

Unincorporated Shelby

Outside city limits, Shelby County requires a yearly short-term rental permit for each unit ($100, then $50 to renew), $1 million in insurance, a responsible party within 50 miles, and the permit number in every listing. Taxes are 9.25% sales tax and 5% county 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.