LicensedRental

Shelby County, Tennessee

Unincorporated Shelby, TN vacation rental requirements

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.

Checked against official sources November 5, 2026

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County permit
Required for each unit
Art. XVIII; issued by the County Clerk. Up to four sleeping rooms.Source
Fees
$100, then $50 a year
Operating without a permit
Up to $50 a day per unit
Sales tax
9.25%
7% state + local rate, on stays under 90 days.Source
Occupancy tax
5%
County tax, filed with the County Clerk.Source

Rentals operating before the county rules took effect (August 2018) are exempt under state law until the home is sold, stops being a rental for 30 months, or has three violations (§8-803).

The June 2026 program update says registration is moving to the Division of Planning and Development; ask the County Clerk where to apply now.

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.

Shelby County (unincorporated areas)

  1. Apply for the county permit

    Submit the application with a site plan drawn to scale showing each unit and the maximum guests per night, proof of ownership, proof of fire, hazard, and liability insurance of at least $1 million per occurrence, a compliance verification form, and a responsible party within 50 miles. The application calls for a final inspection by Memphis/Shelby County Code Enforcement.Source

    Permit application (PDF) →

  2. Renew every year

    Permits expire after 365 days. Send the $50 renewal at least 30 days before. Report any citation at the property in writing within 30 days of the court’s decision.Source

  3. Register for sales and occupancy tax

    Tax on stays here is 9.25% sales tax plus 5% occupancy 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 county 5% with the Shelby County Clerk by the 20th of each month.Source

Fees

$100 the first year and $50 a year after

Application$100
Annual renewal$50
Operating without a permitUp to $50 a day per unit, plus court costs

Fees are non-refundable. Source

Inspection checklist

What the inspector looks for, from Shelby County (unincorporated areas)’s published checklist.

  • Fire extinguisherFive-pound, ABC-rated, in each unit.Source
  • Smoke alarms (UL 217)In all sleeping areas and every room on the path out.Source
  • Carbon monoxide detectorsOn every habitable floor.Source
  • Posted contactResponsible party’s name and phone posted; calls answered 24 hours a day during stays.Source

House rules for guests

Principal renter
18 or older
Source
Minimum stay
24 hours
Source
Food
Packaged, sealed, nonperishable only
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.