Short-Term Rental Regulations in Tennessee

State Overview
Tennessee does not preempt local STR regulation. Cities may adopt their own permitting and zoning rules. The state imposes a 7% State Sales Tax on Lodging in addition to any local taxes.

Cities in Tennessee

City Permit Tax Rate Day Limit Primary Res.
Chattanooga ✓ Required 17.25% No limit Varies
Gatlinburg ✓ Required 12.75% No annual cap · per-stay limit No
Knoxville ✓ Required 13.25% No limit Varies
Memphis ✓ Required ~15.5% + $2/night No limit No
Nashville ✓ Required 15.25% No limit Varies
Pigeon Forge ✓ Required 12.25% No limit No
Sevierville ✓ Required 12.75% No limit No

Tennessee's STR Landscape

Tennessee does not have a uniform STR framework, leaving regulation to individual municipalities. The state imposes a 7% State Sales Tax on Lodging in addition to local taxes.

Regulation varies significantly across cities. Some cities (Chattanooga, Knoxville, Nashville) require primary residence, while others (Gatlinburg, Memphis, Pigeon Forge, Sevierville) allow non-owner-occupied rentals. Tax rates vary from 12.25% to 17.25%.

Popular Short-Term Rental Markets

High-demand markets in other states — compare their permit, tax, and day-limit rules:

Other States

Alabama 2 cities Alaska 1 city Arizona 8 cities Arkansas 3 cities California 28 cities Colorado 12 cities Connecticut 1 city Delaware 2 cities District of Columbia 1 city Florida 24 cities Georgia 6 cities Hawaii 4 cities Idaho 3 cities Illinois 2 cities Indiana 2 cities Kentucky 2 cities Louisiana 1 city Maine 4 cities Maryland 3 cities Massachusetts 6 cities Michigan 4 cities Minnesota 1 city Mississippi 2 cities Missouri 4 cities Montana 3 cities Nevada 1 city New Hampshire 2 cities New Jersey 5 cities New Mexico 3 cities New York 5 cities North Carolina 7 cities Ohio 3 cities Oklahoma 3 cities Oregon 3 cities Pennsylvania 4 cities Rhode Island 2 cities South Carolina 7 cities South Dakota 2 cities Texas 13 cities Utah 7 cities Vermont 2 cities Virginia 6 cities Washington 4 cities West Virginia 1 city Wisconsin 4 cities Wyoming 1 city