LicensedRental

Sumner County, Tennessee

Hendersonville, TN vacation rental requirements

Hendersonville allows short-term rentals (stays under 30 days) only in its Old Town Commercial and General Commercial zones, with an engineered site plan, a use and occupancy permit, and a business license. The city enforces against rentals elsewhere. Occupancy tax is 9% (4% city + 5% county).

Checked against official sources November 5, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

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Where allowed
OTC and GC zones only
Ordinance 2016-16.Source
City approvals
Site plan, U&O permit, business license
Owner-occupied rooms
Not counted
Renting part of a home you live in full time isn’t a vacation rental under the ordinance.Source
Occupancy tax
9%
4% city + 5% county.Source

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.

Sumner County, Tennessee

  1. Then your city

    Pick your area. For unincorporated Sumner County, ask the county planning office about zoning.

City of Hendersonville

  1. Check your zoning

    Only Old Town Commercial (OTC) and General Commercial (GC) allow short-term rentals. Police inspect complaints and refer them to the Zoning Enforcement Officer, who can cite to City Court.Source

  2. Get city approvals

    Submit an engineered site plan, get a use and occupancy permit, and get a business license before you operate.Source

  3. Register for sales and occupancy tax

    Tax on stays here is 9.75% sales tax plus 9% occupancy tax (4% city + 5% county). 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. For direct bookings, file the city’s 4% return and pay by 4:30 PM on the 20th; ask the county where to file its 5%.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.