State Framework
Understand the statewide rules, tax layer, and authority given to cities and counties.
State guide
Tennessee Short-Term Rental Laws: State Rules, Taxes, and Local Permits
Tennessee STR rules explained with current official sources: statewide duties, local permit boundaries, tax responsibility, failure points, and an address-level action plan.
- 100+ U.S. cities
- Official sources
- Address used only for local rules
Compliance layers
Four Layers to Verify Before Your Tennessee Property Goes Live.
Local Permit
Match the address to the correct city or town permit, notice, renewal, and operating rules.
Tax Obligations
Check state and local licensing, filing, and marketplace collection responsibilities.
County Records
Verify the separate rental-registration or property-record steps for the relevant county.
Direct answer
Tennessee STR rules at a glance
Tennessee does not issue one statewide STR operating permit; city or county rules control local authorization. At the tax layer, short rentals are subject to sales tax, local occupancy tax applies to covered STR stays, and business tax can apply when local gross receipts reach the threshold. For agreements entered, renewed, or amended on or after July 1, 2025, local occupancy tax on days 1–30 is not refunded when the stay later extends.
- Local permit
- Operating eligibility, permit class, zoning, and renewal are set by the city or county.Nashville, Memphis, Knoxville, Gatlinburg, and unincorporated areas use different programs.
- Sales tax
- Tennessee sales tax applies to short-term rental lodging under the Department’s guidance.Keep state/local sales tax responsibility separate from local occupancy tax.
- First 30 days
- For qualifying agreements entered, renewed, or amended on or after July 1, 2025, days 1–30 remain subject to local occupancy tax even if the stay continues.The tax stops starting on day 31; the earlier tax is not refunded or credited.
- Marketplace split
- A qualifying STR marketplace collects and remits local occupancy tax for facilitated reservations to the Department.Owner-direct bookings generally require the operator to remit to the appropriate local jurisdiction.
State compliance is not address approval
Use the statewide rules below as the base layer, then verify the exact city, county, parcel, dwelling, and booking channel. A tax account or platform listing does not by itself authorize an STR in Tennessee.
Warning
Local decision rule
Decide which Tennessee rules control the address
Tennessee’s operational permit and tax stack should be modeled separately. The local government decides whether the property can operate. The Department of Revenue guidance then distinguishes sales tax, local occupancy tax, business tax, marketplaces, property managers, and direct operators. A channel-specific ledger prevents double remittance and missing direct-booking tax.
Resolve the local authority and permit class
Confirm municipal/county boundaries, zoning, owner-occupied versus non-owner-occupied class, permit availability, and grandfathering before tax registration.
RequiredClassify platform, manager, and direct channels
A property manager is not automatically a marketplace. Assign sales and occupancy tax based on the Department’s role definitions.
RequiredTest business-tax nexus and threshold
The manual describes business-tax registration and a $100,000 local gross-receipts threshold; review receipts by jurisdiction.
Required
Money and filings
Tennessee tax, platform, and recordkeeping split
Marketplaces remit facilitated STR occupancy tax to the state; direct operators remit under the responsible local jurisdiction’s process. Use that rule as the starting point for a Tennessee booking-channel ledger that names the collector, government destination, return, and closeout evidence.
- Occupancy-tax destination
- Marketplaces remit facilitated STR occupancy tax to the state; direct operators remit under the responsible local jurisdiction’s process.
- Agreement transition
- The July 2025 rule is keyed to when the rental agreement is entered, renewed, or amended, not only the stay date.
- Separate taxes
- Sales tax, local occupancy tax, and business tax use different bases, returns, and responsible parties. Reconcile rather than combining them as one “hotel tax.”
Failure conditions
Mistakes that can invalidate a Tennessee STR plan
The state manual distinguishes property managers from STR marketplaces. Collection and remittance can fall back to the operator/local jurisdiction. The additional Tennessee failure conditions below also change eligibility, the responsible filer, the amount due, or the evidence needed to defend the operation.
Treating a manager as a marketplace
The state manual distinguishes property managers from STR marketplaces. Collection and remittance can fall back to the operator/local jurisdiction.
RequiredRefunding days 1–30 after an extended stay
For covered agreements from July 1, 2025 onward, the first 30 days remain subject to local occupancy tax even when occupancy continues.
RequiredIgnoring business tax
Sales and occupancy tax compliance does not answer the local business-tax threshold and registration question.
Required
Address-specific rules
Tennessee city and county STR guides
Statewide Tennessee rules cannot decide the local permit for a parcel. After confirming the property is inside the named jurisdiction, use its guide for the applicable zoning, documents, fees, renewal, and enforcement path.
Nashville Short-Term Rental Laws
Nashville STRP Permit, zoning, documents, taxes, operating rules, and renewal.
Memphis Short-Term Rental Laws
Memphis Short-Term Rental Permit, zoning, documents, taxes, operating rules, and renewal.
Knoxville Short-Term Rental Laws
Knoxville Short-Term Rental Permit, zoning, documents, taxes, operating rules, and renewal.
Gatlinburg Short-Term Rental Laws
Gatlinburg Tourist Residency Permit, zoning, documents, taxes, operating rules, and renewal.
FAQs
Frequently Asked Questions
Does Tennessee issue a statewide STR permit?
No single statewide operating permit appears in the state tax sources reviewed. Cities and counties control local authorization.
Who remits Tennessee local occupancy tax for Airbnb-style bookings?
A qualifying STR marketplace remits for facilitated bookings; direct operators generally remit under the responsible local jurisdiction’s process.
What changed July 1, 2025 for long stays?
For covered rental agreements entered, renewed, or amended on or after that date, local occupancy tax on days 1–30 is not refunded when occupancy extends beyond 30 days.
Can an STR owe Tennessee business tax too?
Yes. The Department’s manual explains business-tax registration and the local gross-receipts threshold; review receipts by jurisdiction rather than assuming lodging taxes are the only duty.