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Tennessee · Chattanooga

Chattanooga

city Allowed with registration Verified · last verified 2026-07-15

Short-term vacation rentals ("Short-Term Vacation Rentals" / STVRs — a structure with no more than five bedrooms where accommodations are supplied for pay on a daily or weekly basis for not more than 30 days) are legal in Chattanooga only with a Short-Term Vacation Rental Certificate, issued annually by the City of Chattanooga Development Review and Permitting Division, governed by Chattanooga City Code Chapter 38 (Zoning), Article XVII, Secs. 38-83 through 38-95. Two occupancy types are defined in Sec. 38-85: HOMESTAY (owner-occupied — the property is the applicant's primary residence, i.e. the residence of the applicant at least 183 days a year), allowed in any zone where residential uses are allowed within the Short-Term Vacation Rental Overlay District plus specified commercial zones; and ABSENTEE (non-owner-occupied), allowed only in mixed-use and commercial zones that allow a hotel (Sec. 38-83(a)) or within any parcel of at least 20 acres of common ownership that allows residential uses (Sec. 38-83(b)); absentee applications require Fire Marshal and City Building Inspector inspections (Sec. 38-89(c)(3)). Certificate application fees (Sec. 38-89(b)(1), non-refundable, plus transaction-related fees): Homestay $250 initial / $250 renewal; Absentee $500 initial / $500 renewal — annual renewal required (renewal application due not less than 30 days before expiration; a certificate more than 30 days past expiration cannot be renewed — Sec. 38-91). STVRs may not exceed 25% of the total units in a multi-unit dwelling or development (Sec. 38-85), and are prohibited on Affordable Housing PILOT Program property (Sec. 38-86(b)). Every STVR must designate a local agent available 24/7 who can appear on-site within 2 hours of City notification (Sec. 38-92). The current Article XVII was enacted/amended by Ord. Nos. 14137 & 14138 (7-23-2024), with overlay-map amendment Ord. 14117 (6-11-2024, effective June 11, 2024) and a definitions amendment Ord. 14238 (5-20-2025); it descends from the May 16, 2023 STVR reform (Ord. No. 13981). Code current through Ord. No. 14347, enacted April 14, 2026 (Municode Supp. No. 40, Update No. 1). Taxes: 7% Tennessee state sales tax + 2.25% Hamilton County local option sales tax (9.25% combined) + 4% Hamilton County and 4% City of Chattanooga hotel/motel occupancy privilege taxes on stays under 30 days; marketplace platforms (Airbnb/Vrbo) collect and remit sales and occupancy taxes on platform bookings, while direct rentals remit local occupancy tax to the Hamilton County Trustee by the 20th of each month.

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

Requirements checklist

  • city Short-Term Vacation Rental Certificate — Homestay (owner-occupied) Conditional
    Fee: $250 / annual · Renewal: Annual; renewal application must be submitted not less than 30 days before expiration; a certificate more than 30 days past its expiration date cannot be renewed (Sec. 38-91) · Applies to: Owner-occupied STRs where the property is the applicant's primary residence (the residence of the applicant at least 183 days a year); allowed in any zone permitting residential uses within the Short-Term Vacation Rental Overlay District and the specified commercial zones · official page ↗
  • city Short-Term Vacation Rental Certificate — Absentee (non-owner-occupied) Conditional
    Fee: $500 / annual · Renewal: Annual; same 30-days-before-expiration renewal window and 30-day-past-expiration bar as Homestay (Sec. 38-91) · Applies to: Non-owner-occupied / investor STRs; allowed only in mixed-use and commercial zones that allow a hotel, or within any parcel of at least 20 acres of common ownership that allows residential uses. Requires Fire Marshal and City Building Inspector inspections (Sec. 38-89(c)(3)). · official page ↗
  • city Code Compliance Verification Form Required
    Fee: — · Renewal: Submitted with certificate; conditions re-verified at annual renewal · Applies to: All STVR certificate applicants (submitted with the certificate application per Sec. 38-87(a)) · official page ↗
  • city Designated Short-Term Vacation Rental Agent Required
    Fee: — · Renewal: Ongoing; only one agent per property at a time; changes must be reported to the Development Review and Permitting Division in writing (Sec. 38-92(c)) · Applies to: Every STVR; a local agent (the owner, a resident, or a designee over age 18) available 24/7 and able to appear on-site within 2 hours of a City notification · official page ↗
  • county Hamilton County Trustee hotel/motel occupancy privilege tax account Conditional
    Fee: — · Renewal: Monthly return filing (even if no tax due) · Applies to: STVR operators who rent directly (not through a marketplace) register and remit local occupancy tax to the Hamilton County Trustee; when rented via a short-term rental unit marketplace, the marketplace remits occupancy tax to the TN Dept. of Revenue instead · official page ↗
  • state Tennessee sales tax registration (TN Dept. of Revenue, via TNTAP) Conditional
    Fee: — · Renewal: Ongoing sales/use tax returns for direct rentals · Applies to: STVR owners must register and remit state + local sales tax on direct (non-marketplace) rentals; marketplace facilitators collect and remit for platform bookings · official page ↗
  • state Tennessee business tax (state + city privilege tax) Conditional
    Fee: — · Renewal: Annual return · Applies to: Individual property owners renting vacation lodging (rentals of less than 180 days) with annual taxable gross sales of $100,000 or more in a jurisdiction; a property management company, if used, owes the tax on its gross overnight-rental sales instead of the owner · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
Tennessee state sales tax 7% — — —
Hamilton County local option sales tax 2.25% — — —
Hamilton County hotel/motel occupancy privilege tax 4% — — —
City of Chattanooga hotel/motel occupancy privilege tax 4% — — —

Lodging-tax estimator

Estimate the combined transient/lodging tax (~17.3%) on a stay in Chattanooga. Estimate only — not tax advice.

Operating rules

Primary residence
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Min stay (nights)
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Max nights / year
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Max occupancy
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Zoning-restricted
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Cap on licenses
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Frequently asked questions

Is Airbnb legal in Chattanooga?
Short-term vacation rentals ("Short-Term Vacation Rentals" / STVRs — a structure with no more than five bedrooms where accommodations are supplied for pay on a daily or weekly basis for not more than 30 days) are legal in Chattanooga only with a Short-Term Vacation Rental Certificate, issued annually by the City of Chattanooga Development Review and Permitting Division, governed by Chattanooga City Code Chapter 38 (Zoning), Article XVII, Secs. 38-83 through 38-95. Two occupancy types are defined in Sec. 38-85: HOMESTAY (owner-occupied — the property is the applicant's primary residence, i.e. the residence of the applicant at least 183 days a year), allowed in any zone where residential uses are allowed within the Short-Term Vacation Rental Overlay District plus specified commercial zones; and ABSENTEE (non-owner-occupied), allowed only in mixed-use and commercial zones that allow a hotel (Sec. 38-83(a)) or within any parcel of at least 20 acres of common ownership that allows residential uses (Sec. 38-83(b)); absentee applications require Fire Marshal and City Building Inspector inspections (Sec. 38-89(c)(3)). Certificate application fees (Sec. 38-89(b)(1), non-refundable, plus transaction-related fees): Homestay $250 initial / $250 renewal; Absentee $500 initial / $500 renewal — annual renewal required (renewal application due not less than 30 days before expiration; a certificate more than 30 days past expiration cannot be renewed — Sec. 38-91). STVRs may not exceed 25% of the total units in a multi-unit dwelling or development (Sec. 38-85), and are prohibited on Affordable Housing PILOT Program property (Sec. 38-86(b)). Every STVR must designate a local agent available 24/7 who can appear on-site within 2 hours of City notification (Sec. 38-92). The current Article XVII was enacted/amended by Ord. Nos. 14137 & 14138 (7-23-2024), with overlay-map amendment Ord. 14117 (6-11-2024, effective June 11, 2024) and a definitions amendment Ord. 14238 (5-20-2025); it descends from the May 16, 2023 STVR reform (Ord. No. 13981). Code current through Ord. No. 14347, enacted April 14, 2026 (Municode Supp. No. 40, Update No. 1). Taxes: 7% Tennessee state sales tax + 2.25% Hamilton County local option sales tax (9.25% combined) + 4% Hamilton County and 4% City of Chattanooga hotel/motel occupancy privilege taxes on stays under 30 days; marketplace platforms (Airbnb/Vrbo) collect and remit sales and occupancy taxes on platform bookings, while direct rentals remit local occupancy tax to the Hamilton County Trustee by the 20th of each month.
Do I need a license or registration for a short-term rental in Chattanooga?
Yes — Chattanooga requires: Short-Term Vacation Rental Certificate — Homestay (owner-occupied); Short-Term Vacation Rental Certificate — Absentee (non-owner-occupied); Code Compliance Verification Form. See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Chattanooga?
Tennessee state sales tax (7%), Hamilton County local option sales tax (2.25%), Hamilton County hotel/motel occupancy privilege tax (4%), City of Chattanooga hotel/motel occupancy privilege tax (4%) — roughly 17.3% combined. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

In Tennessee · Hamilton County

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