Gatlinburg Short-Term Rental Regulations

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Permit & Licensing

Tourist Residency Permit

This permit type does not require primary residence.

Application Process

Submit application in person at Gatlinburg Customer Service Center (912 East Parkway) or mail to City Hall. Fire and building inspection required. Verify zoning with Building and Planning Department before applying.

Tax Obligations

Combined rate: 12.75% of gross rental income.

Collection: Airbnb auto-collects 9.75% state and local sales taxes. Hosts self-remit 3% city lodging tax. VRBO hosts must self-collect and remit all taxes.

Filing: Monthly, quarterly, or annual depending on assignment. Returns due 20th day of month following end of filing period. Zero-dollar returns required even with no rental activity. Register with Tennessee Dept. of Revenue; county lodging tax filed with Sevier County Trustee by 20th monthly.

Rental Limits

Gatlinburg does not impose an annual cap on the number of nights you can rent. Each individual stay must be 89 days or fewer per stay.

Occupancy & Density Limits

Listed on permit application; maximum number of occupants must be specified.

Zoning & Restrictions

STRs prohibited in R-1A and R-2A zones. Permitted in R-1, R-2, R-3 residential zones, commercial zones (C-1, C-2), tourist commercial zones, and mixed-use developments.

Insurance & Safety

Insurance

Gatlinburg does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Annual fire and safety inspections required
• Smoke detectors on each level and in bedrooms
• Carbon monoxide detectors near fuel-burning appliances
• Fire extinguishers on each level
• Clear, unobstructed escape routes
• Emergency contact information posted prominently
• Visible address signage

Platform Requirements

• Airbnb collects 9.75% state and local sales taxes automatically
• Hosts must collect the 3% lodging tax separately. VRBO does not collect taxes automatically.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Gatlinburg:

1. Meet safety requirements. Annual fire and safety inspections required. Smoke detectors on each level and in bedrooms. Carbon monoxide detectors near fuel-burning appliances. Fire extinguishers on each level. Clear, unobstructed escape routes. Emergency contact information posted prominently. Visible address signage.
2. Apply for Tourist Residency Permit. Submit application + $200 fee.
3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
4. Collect and remit taxes. 12.75% on all bookings.
5. Renew annually. $200 (2 or fewer bedrooms); $75 per additional bedroom over two renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Gatlinburg?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Gatlinburg requires a Tourist Residency Permit.

How much does a short-term rental permit cost in Gatlinburg?

A Tourist Residency Permit in Gatlinburg costs $200 per year.

Does Gatlinburg require a short-term rental to be your primary residence?

No. Gatlinburg allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Gatlinburg?

Gatlinburg does not cap the total number of nights per year, but each individual stay must be 89 days or fewer.

What taxes do you pay on a short-term rental in Gatlinburg?

Short-term rental stays in Gatlinburg are subject to a combined 12.75% in lodging taxes. This combines 7% Tennessee State Sales Tax + 2.75% Local Option Sales Tax (Sevier County) + 3% Gatlinburg Hotel/Motel Tax. The host is responsible for collecting and remitting them.