Williamson County, Tennessee
Franklin, TN vacation rental requirements
Franklin allows one short-term vacation rental per lot, and only if the owner lives there. An owner can rent an accessory dwelling, or rent the whole home while away for up to 113 nights a year. Every rental needs an updated certificate of use and occupancy ($50 a year), $1 million liability insurance, and a 10-guest cap.
Checked against official sources November 5, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
Rentals operating before the owner-occupancy rule (December 2019) were grandfathered, per news reports. Under state law that protection ends when the home is sold.
Three or more complaints in a year trigger a notice, and the Board of Mayor and Aldermen can revoke the right to operate.
We couldn’t read which zoning districts list short-term vacation rentals in the use table. Ask the city about your parcel.
Your licensing checklist
In order: the state, the county, then the town.
State of Tennessee
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
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
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
Then your county and city
Permits, zoning, and occupancy tax rates are where Tennessee towns differ most. Pick your area.
Williamson County, Tennessee
Then your city
Pick your area. Spring Hill, which lies mostly in Maury County, is on the Maury County page.
City of Franklin
Check zoning and owner occupancy
You must live on the lot. On a lot with a house and an accessory dwelling, you can live in one and rent the other. Without an accessory dwelling, you can rent the house only while you’re away, for no more than 113 nights in any 12 months.Source
Update your certificate of use and occupancy
Apply to Building and Neighborhood Services before you list. Name a responsible party within 25 miles, show $1 million liability insurance every year, and notify any neighbor who shares a wall or driveway. Pay $50 and reapply every 365 days.Source
Register for sales and occupancy tax
Tax on stays here is 9.75% sales tax plus 9% occupancy tax (5% city + 4% 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. Ask the city and county where to file their shares on direct bookings.Source
House rules for guests
Sources
- Taxation of short-term vacation rentals · Tennessee Department of Revenue
- SUT-48: Short-term rentals, reporting requirements · Tennessee Department of Revenue
- Franklin Zoning Ordinance §5.1.4.W, short-term vacation rentals (effective January 13, 2026) · City of Franklin
- Code section · City of Franklin (Municode)
- Local occupancy tax rates report · Tennessee Department of Revenue
- Code section · City of Franklin (Municode)
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.