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Tennessee

Tennessee

state Allowed Verified · last verified 2026-07-15

Tennessee permits short-term rentals statewide and has NO state-level STR license or permit; regulation and permitting are delegated to local governments. The Short-Term Rental Unit Act (T.C.A. §§ 13-7-601 to 13-7-605; Public Chapter 972, Acts of 2018, effective May 17, 2018) defines a "short-term rental unit" as "a residential dwelling that is rented wholly or partially for a fee for a period of less than thirty (30) continuous days." Section 13-7-603(a) grandfathers units already operating as STRs before a local ordinance is enacted; that protection ends on sale/transfer or 30 continuous months of non-use (§ 13-7-603), and § 13-7-604 lets a local governing body prohibit continued STR use after three or more separate violations of generally applicable local law and/or impose a permitting/application process. A pre-January 1, 2014 rental-duration ordinance exception (§ 13-7-603(b)) applies, per MTAS, only to the City of Brentwood. HOAs/condos/co-ops may still restrict STRs (§ 13-7-605). At the state level, STR income is subject to 7% state sales tax plus 1.50%-2.75% local sales tax on rentals furnished for less than 90 continuous days, business tax on rentals of less than 180 days (individual owners only if annual taxable gross sales are $100,000 or more in a jurisdiction), and local occupancy taxes. Effective January 1, 2021, short-term rental unit marketplaces must remit local occupancy tax to the Department and, when they meet the $100,000 marketplace-facilitator sales threshold, must also collect and remit sales tax. For rental agreements entered into, renewed, or amended on or after July 1, 2025, local occupancy tax collected on days 1-30 may no longer be refunded or credited.

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

  • state No statewide short-term rental license or permit Not required
    Fee: — · Renewal: — · Applies to: All short-term rental operators; the state does not license STRs and delegates regulation to local governing bodies · official page ↗
  • state Tennessee sales and use tax registration (TNTAP) Conditional
    Fee: — · Renewal: — · Applies to: Property owners/providers renting for less than 90 continuous days who collect tax directly; not required for a host when a marketplace facilitator collects and remits sales tax on the host's behalf (marketplace facilitators collect when they meet the $100,000 statutory sales threshold) · official page ↗
  • state Tennessee business tax registration Conditional
    Fee: — · Renewal: annual · Applies to: Individual property owners renting vacation lodging whose annual taxable gross sales are $100,000 or more in a jurisdiction · official page ↗
  • city Local short-term rental permit/application process (varies by locality) Conditional
    Fee: — · Renewal: — · Applies to: Operators located in a city or county that has adopted a local STR permitting/application ordinance · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
State sales tax 7% Tennessee Department of Revenue — —
Local option sales tax — Tennessee Department of Revenue (state administers/collects the local sales tax) — —
Local occupancy tax — Local county/municipality (paid directly to the local government); remitted to the Tennessee Department of Revenue when the unit is rented through a short-term rental unit marketplace (effective January 1, 2021) — —
Business tax — Tennessee Department of Revenue (a municipality must also adopt the tax to impose it within its city limits) — —

Lodging-tax estimator

Estimate the combined transient/lodging tax (~7.0%) on a stay in Tennessee. Estimate only — not tax advice.

Operating rules

Primary residence
No
Min stay (nights)
—
Max nights / year
—
Max occupancy
—
Zoning-restricted
No
Cap on licenses
—

Grandfathering: yes

Zoning: The state STR Act preempts retroactive local zoning bans on units already operating as STRs before a local ordinance was enacted (grandfathering, § 13-7-603(a)). Local governing bodies otherwise retain authority to zone, regulate, and require permits for STRs prospectively (§ 13-7-604). A pre-January 1, 2014 ordinance limiting rental duration may apply (§ 13-7-603(b)), which MTAS states applies only to the City of Brentwood.

  • State law defines a short-term rental unit as a residential dwelling rented wholly or partially for a fee for a period of less than 30 continuous days (§ 13-7-602); this is a definitional threshold, not a mandated minimum stay.
  • Grandfathering protection under § 13-7-603 is lost if the property is sold or transferred or is not used as an STR for 30 continuous months; under § 13-7-604 a local body may also prohibit continued STR use after three or more separate violations of generally applicable local law.
  • HOAs, condominiums, co-ops, and similar entities may prohibit or restrict STR use per their governing documents (§ 13-7-605).
  • No statewide cap on the number of STRs or STR licenses; caps, primary-residence rules, occupancy limits, and night caps (if any) are set locally.

Enforcement

Active enforcement
unknown
Fines
—
Notes
Specific penalty amounts and complaint/enforcement channels are established locally and are not set at the state level.

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Frequently asked questions

Is Airbnb legal in Tennessee?
Tennessee permits short-term rentals statewide and has NO state-level STR license or permit; regulation and permitting are delegated to local governments. The Short-Term Rental Unit Act (T.C.A. §§ 13-7-601 to 13-7-605; Public Chapter 972, Acts of 2018, effective May 17, 2018) defines a "short-term rental unit" as "a residential dwelling that is rented wholly or partially for a fee for a period of less than thirty (30) continuous days." Section 13-7-603(a) grandfathers units already operating as STRs before a local ordinance is enacted; that protection ends on sale/transfer or 30 continuous months of non-use (§ 13-7-603), and § 13-7-604 lets a local governing body prohibit continued STR use after three or more separate violations of generally applicable local law and/or impose a permitting/application process. A pre-January 1, 2014 rental-duration ordinance exception (§ 13-7-603(b)) applies, per MTAS, only to the City of Brentwood. HOAs/condos/co-ops may still restrict STRs (§ 13-7-605). At the state level, STR income is subject to 7% state sales tax plus 1.50%-2.75% local sales tax on rentals furnished for less than 90 continuous days, business tax on rentals of less than 180 days (individual owners only if annual taxable gross sales are $100,000 or more in a jurisdiction), and local occupancy taxes. Effective January 1, 2021, short-term rental unit marketplaces must remit local occupancy tax to the Department and, when they meet the $100,000 marketplace-facilitator sales threshold, must also collect and remit sales tax. For rental agreements entered into, renewed, or amended on or after July 1, 2025, local occupancy tax collected on days 1-30 may no longer be refunded or credited.
Do I need a license or registration for a short-term rental in Tennessee?
Yes — Tennessee requires: Tennessee sales and use tax registration (TNTAP); Tennessee business tax registration; Local short-term rental permit/application process (varies by locality). See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Tennessee?
State sales tax (7%), Local option sales tax, Local occupancy tax, Business tax — roughly 7.0% combined. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

Counties & cities Davidson County · Hamilton County · Knox County · Rutherford County · Sevier County · Shelby County · Williamson County

Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.