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Tennessee · Gatlinburg

Gatlinburg

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

Short-term rentals ("tourist residencies") are legal in Gatlinburg but require an annual Tourist Residency Permit and an annual inspection under Gatlinburg Municipal Code, Title 5, Chapter 7 (§§5-701–5-705; §5-701 was replaced by Ord. #2325, Dec. 2004 and amended by Ord. #2453 (Nov. 2012), Ord. #2461 (Mar. 2013) and Ord. #2503 (Sept. 2016); §§5-702–5-705 as replaced by Ord. #2325, Dec. 2004). §5-701 defines a "tourist residency" as renting single-family residences, cabins, chalets, condominiums or apartments not otherwise inspected by the State of Tennessee "on an overnight, weekly or other basis of less than thirty days duration." Each tourist residence must hold the permit and pass an annual tourist residency inspection (§5-702). The base permit fee is $200 (covers the residence plus two bedrooms) plus $75 per additional bedroom (§5-703). Renting without a permit is a violation punishable by a fine "not to exceed fifty dollars ($50.00) per violation," and each rental constitutes a separate violation (§5-705). Zoning (Municipal Zoning Ordinance updated through March 2022) permits tourist residences in R-1 (single-family dwellings, with the annual permit plus off-street-parking and site-plan conditions, §701.5), R-2 and R-3 residential districts, but PROHIBITS them in the R-1A (Low Density) district (§702.1: any use permitted in R-1 "except tourist residences and Planned Unit Developments") and the R-2A (Medium Density) district (§704.1: any use permitted in R-2 "except tourist residences"). There is no cap on the number of permits and no primary-residence, minimum-stay, or annual-night-limit requirement in the ordinance. Life-safety: tourist residences of more than 3 stories, more than 5,000 gross sq ft, or more than 12 occupants are classified R-1 or R-3 under NFPA 101/IBC and are NOT subject to (i.e., not eligible for) the fire-sprinkler exemption of T.C.A. §68-120-101(a)(8)(A) (§5-701(2)); smaller units (≤3 stories, <5,000 sq ft, ≤12 occupants) are treated as one/two-family dwellings and qualify for that exemption (§5-701(1)). Applicable taxes on the rental: City hotel/motel (lodging) occupancy tax of 3% (§5-602; a "transient" is anyone occupying for a period of less than ninety (90) continuing days, §5-601(4)); Tennessee state sales tax 7% plus Sevier County local-option sales tax 2.75% (combined 9.75%); and a City gross-receipts/privilege tax of 1.25% on the operator's gross receipts (§5-201, absorbed by the operator, not added to the guest bill). Operators must also hold a City of Gatlinburg business license ($15) and a Sevier County business license ($15) and register with the Tennessee Dept. of Revenue for a location-specific sales-tax number. NOTE: the separate Sevier County 3% lodging tax (2007 Private Act, HB 1016) applies only to overnight rentals OUTSIDE the city limits of Sevierville, Pigeon Forge, Pittman Center and Gatlinburg, so it does NOT apply inside Gatlinburg city limits.

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

Requirements checklist

  • city Tourist Residency Permit Required
    Fee: $200 / annual · Renewal: Annual (annual permit and annual tourist residency inspection required, §5-702) · Applies to: Any single-family residence, cabin, chalet, condominium, or apartment (not otherwise inspected by the State of Tennessee) rented to tourists/visitors on an overnight, weekly, or other basis of less than thirty days duration within Gatlinburg city limits · official page ↗
  • city Annual tourist residency / fire & life-safety inspection Required
    Fee: — · Renewal: Annual · Applies to: All permitted tourist residences; reviewed and permitted under the adopted building codes and NFPA 101 / Life Safety 101 Code · official page ↗
  • city Fire sprinkler system (conditional) Conditional
    Fee: — · Renewal: — · Applies to: Tourist residences consisting of more than 3 stories, more than 5,000 gross square feet, OR more than 12 occupants (classified R-1 or R-3 under NFPA 101 / IBC) · official page ↗
  • city City of Gatlinburg Business License Required
    Fee: $15 / one-time application · Renewal: Annual (business tax renewed yearly with the State of Tennessee) · Applies to: Every person doing business within the City of Gatlinburg · official page ↗
  • county Sevier County Business License Required
    Fee: $15 / one-time application · Renewal: Annual (business tax renewed yearly with the State of Tennessee) · Applies to: Businesses operating in Gatlinburg/Sevier County (issued by the Sevier County Clerk) · official page ↗
  • state Tennessee Department of Revenue sales tax account Required
    Fee: — · Renewal: — · Applies to: Each business location; a separate sales tax number is required for the Gatlinburg location · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
City Hotel/Motel (Lodging) Occupancy Tax — — — —
Tennessee State Sales Tax — — — —
Sevier County Local-Option Sales Tax — — — —
City Gross Receipts / Privilege Tax — — — —

Operating rules

Primary residence
No
Min stay (nights)
—
Max nights / year
—
Max occupancy
No fixed maximum-occupancy cap in the ordinance. More than 12 occupants triggers R-1/R-3 classification (removing the fire-sprinkler exemption, §5-701(2)). Off-street parking must be provided based on the maximum sleeping accommodations established for the tourist residence, and in no case fewer than two (2) on-site parking spaces, except single-bedroom units which must provide one (1) on-site space (zoning §701.5.1).
Zoning-restricted
Yes
Cap on licenses
No

Zoning: Tourist residences are PROHIBITED in the R-1A (Low Density Residential) district (§702.1: 'Any use permitted in the R-1 residential district, except tourist residences and Planned Unit Developments') and in the R-2A (Medium Density Residential) district (§704.1: 'Any use permitted in the R-2 Residential District, except tourist residences'). They are PERMITTED in R-1 (single-family dwellings used as tourist residences after obtaining the annual Tourist Residence Permit and meeting off-street-parking/site-plan conditions, §701.5), R-2, and R-3 residential districts, per the Municipal Zoning Ordinance updated through March 2022. Verify zoning with the Building and Planning Department before applying.

  • Two different day thresholds apply: the Tourist Residency PERMIT covers rentals of 'less than thirty days duration' (§5-701); the City hotel/motel occupancy TAX applies to a 'transient' defined as occupancy 'for a period of less than ninety (90) continuing days' (§5-601(4)). Secondary sites citing an '89-day' STR definition conflate the tax threshold with the permit threshold.
  • No cap on the number of tourist residency permits appears anywhere in Title 5, Chapter 7 or in the zoning ordinance (finding based on the absence of any cap provision in the reviewed text).
  • No primary-residence, minimum-night, or annual-night-cap requirement appears in the ordinance (finding based on the absence of any such provision in Title 5, Chapter 7 and the zoning ordinance).
  • The separate Sevier County 3% lodging tax (2007 Private Act, HB 1016) applies only to overnight rentals OUTSIDE the city limits of Sevierville, Pigeon Forge, Pittman Center and Gatlinburg, and therefore does NOT apply to rentals inside Gatlinburg city limits (confirmed via Sevier County Trustee).

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Frequently asked questions

Is Airbnb legal in Gatlinburg?
Short-term rentals ("tourist residencies") are legal in Gatlinburg but require an annual Tourist Residency Permit and an annual inspection under Gatlinburg Municipal Code, Title 5, Chapter 7 (§§5-701–5-705; §5-701 was replaced by Ord. #2325, Dec. 2004 and amended by Ord. #2453 (Nov. 2012), Ord. #2461 (Mar. 2013) and Ord. #2503 (Sept. 2016); §§5-702–5-705 as replaced by Ord. #2325, Dec. 2004). §5-701 defines a "tourist residency" as renting single-family residences, cabins, chalets, condominiums or apartments not otherwise inspected by the State of Tennessee "on an overnight, weekly or other basis of less than thirty days duration." Each tourist residence must hold the permit and pass an annual tourist residency inspection (§5-702). The base permit fee is $200 (covers the residence plus two bedrooms) plus $75 per additional bedroom (§5-703). Renting without a permit is a violation punishable by a fine "not to exceed fifty dollars ($50.00) per violation," and each rental constitutes a separate violation (§5-705). Zoning (Municipal Zoning Ordinance updated through March 2022) permits tourist residences in R-1 (single-family dwellings, with the annual permit plus off-street-parking and site-plan conditions, §701.5), R-2 and R-3 residential districts, but PROHIBITS them in the R-1A (Low Density) district (§702.1: any use permitted in R-1 "except tourist residences and Planned Unit Developments") and the R-2A (Medium Density) district (§704.1: any use permitted in R-2 "except tourist residences"). There is no cap on the number of permits and no primary-residence, minimum-stay, or annual-night-limit requirement in the ordinance. Life-safety: tourist residences of more than 3 stories, more than 5,000 gross sq ft, or more than 12 occupants are classified R-1 or R-3 under NFPA 101/IBC and are NOT subject to (i.e., not eligible for) the fire-sprinkler exemption of T.C.A. §68-120-101(a)(8)(A) (§5-701(2)); smaller units (≤3 stories, <5,000 sq ft, ≤12 occupants) are treated as one/two-family dwellings and qualify for that exemption (§5-701(1)). Applicable taxes on the rental: City hotel/motel (lodging) occupancy tax of 3% (§5-602; a "transient" is anyone occupying for a period of less than ninety (90) continuing days, §5-601(4)); Tennessee state sales tax 7% plus Sevier County local-option sales tax 2.75% (combined 9.75%); and a City gross-receipts/privilege tax of 1.25% on the operator's gross receipts (§5-201, absorbed by the operator, not added to the guest bill). Operators must also hold a City of Gatlinburg business license ($15) and a Sevier County business license ($15) and register with the Tennessee Dept. of Revenue for a location-specific sales-tax number. NOTE: the separate Sevier County 3% lodging tax (2007 Private Act, HB 1016) applies only to overnight rentals OUTSIDE the city limits of Sevierville, Pigeon Forge, Pittman Center and Gatlinburg, so it does NOT apply inside Gatlinburg city limits.
Do I need a license or registration for a short-term rental in Gatlinburg?
Yes — Gatlinburg requires: Tourist Residency Permit; Annual tourist residency / fire & life-safety inspection; Fire sprinkler system (conditional). See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Gatlinburg?
City Hotel/Motel (Lodging) Occupancy Tax, Tennessee State Sales Tax, Sevier County Local-Option Sales Tax, City Gross Receipts / Privilege Tax. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

In Tennessee · Sevier County

Nearby Pigeon Forge · Sevierville

Compare with Nashville · Pigeon Forge · Memphis · Knoxville

Side-by-side vs Pigeon Forge · vs Nashville

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