LicensedRental

Shelby County, Tennessee

Collierville, TN vacation rental requirements

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).

Checked against official sources November 5, 2026

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Short-term rentals
Prohibited in every district
Zoning §151.021, footnote 13.Source
Bed and breakfast homestay
Conditional use permit
Listed as a conditional use in the use table.Source
Sales tax
9.75%
7% state + local rate, on stays under 90 days.Source
Occupancy tax
10%
5% county + 5% town.Source

Ask the town whether a rental that was operating before the ban has any protection under the state’s Short-Term Rental Unit Act.

News reports in 2025 described town legal action against “party houses.”

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.

Shelby County, Tennessee

  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.

Town of Collierville

  1. Don’t list for stays under 30 days

    The town’s use table bars the transient occupancy of short-term rentals in all districts. Longer rentals and approved bed and breakfast homestays are handled separately.Source

  2. Ask about a bed and breakfast homestay

    If you live in the home and want to host guests, ask the Planning Division whether a bed and breakfast homestay conditional use permit is possible at your address.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.