Sevierville Short-Term Rental Regulations

Last verified: 2026-07-02
TL;DR
Sevierville requires Short-Term Rental Operational Permit ($150) with no primary-residence requirement. Combined tax rate is 12.75%. No annual day limit.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Short-Term Rental Operational Permit ($150)
Primary Residence Not required
Annual Day Limit No limit
Tax Rate 12.75%
Max Penalty $50 per day
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental Operational Permit

FeeAmount
Initial cost$150
Renewal$50 / 1 year

This permit type does not require primary residence.

Application Process

Apply online at www.MGOconnect.org; submit required documentation and fee payment, then pass a life-safety inspection of the property by the Sevierville Fire Department.

Tax Obligations

TaxRateAuthority
Tennessee State Sales Tax 7% Tennessee Department of Revenue
Sevier County Local Option Sales Tax 2.75% Sevier County (administered by Tennessee Department of Revenue)
City of Sevierville Lodging Tax 3% City of Sevierville

Combined rate: 12.75% of gross rental income.

Rental Limits

Sevierville does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Sevierville 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

Penalties for Non-Compliance

Fines starting at $50 per day of violation for operating a short-term rental without a permit

Compliance Checklist

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

  1. Meet safety requirements. Life-safety inspection of the property by the Fire Department.
  2. Apply for Short-Term Rental Operational Permit. Submit application + $150 fee.
  3. Register for tax accounts. Set up lodging tax accounts with Tennessee Department of Revenue.
  4. Collect and remit taxes. 12.75% on all bookings.
  5. Renew annually. $50 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Sevierville?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Sevierville requires a Short-Term Rental Operational Permit.
How much does a short-term rental permit cost in Sevierville?
A Short-Term Rental Operational Permit in Sevierville costs $150 per year. Renewal is $50 per year.
Does Sevierville require a short-term rental to be your primary residence?
No. Sevierville 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 Sevierville?
Sevierville does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Sevierville?
Short-term rental stays in Sevierville are subject to a combined 12.75% in lodging taxes. This combines 7% Tennessee State Sales Tax + 2.75% Sevier County Local Option Sales Tax + 3% City of Sevierville Lodging Tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Sevierville?
Operating without a permit can cost up to $50 per day.

Official Sources

  1. Short-Term Rentals | Sevierville, TN
  2. Sevierville, TN Code of Ordinances | Municode Library
  3. Local Occupancy Tax Rates | Tennessee Department of Revenue
  4. City of Sevierville - Hospitality Tax