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Tennessee · Knoxville

Knoxville

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

Short-term rentals (overnight lodging for less than 30 days) are legal in the City of Knoxville but require a Short-Term Rental Unit (STRU) operating permit under Chapter 16, Article XV of the Code of Ordinances (adopted via Ordinances No. O-245-2017 and O-284-2017; effective January 2018). A permit must be obtained BEFORE advertising or operating; staff issue a permit within fourteen business days to qualifying applicants. Two permit types exist: Type 1 (owner-occupied STR in a residentially zoned district; owner must be a natural person — no corporations/LLCs — and the property must be the owner's principal residence; $70 new / $50 renewal) and Type 2 (STR in a non-residential district where zoning still allows residential use; may be non-owner-occupied and may be held by an entity or a tenant with the owner's signed permission, but any person/entity may hold only two (2) Type 2 permits city-wide; $120 new / $50 renewal). STRs are NOT allowed in districts where the Zoning Code does not permit residential use; in residentially zoned districts only owner-occupied (Type 1) STRs are permitted (at the owner's principal residence). There is no annual cap on rental nights. There is no grandfathering — STRs were not allowed under the Zoning Code before the 1/2018 effective date, so pre-existing operations have no vested right and may be ineligible depending on zoning. Both City and County business licenses ($15 each) are also required. Taxes: a 3% city occupancy privilege tax (dedicated to Convention Center debt), plus the general Knoxville sales tax of 7% Tennessee state + 2.25% Knox County local option = 9.25% combined (sales-tax rates per state/county tax authorities; the city FAQ states a rate only for the 3% occupancy tax). Occupancy limit: 2 persons per bedroom plus 2, capped at 12 total. A local agent must respond to calls/complaints within 45 minutes when the operator is away. Enforcement uses monitoring software; operating without a permit is a code violation subject to citations and civil penalties. City FAQ last updated 10-2022.

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

Requirements checklist

  • city Short-Term Rental Unit (STRU) Operating Permit — Type 1 (owner-occupied, residential district) Required
    Fee: $70 / one_time_application · Renewal: Annual; $50 renewal fee; City sends a renewal notice to each operator · Applies to: Owner-occupied STR in a residentially zoned district; owner must be a natural person residing onsite (no corporations/LLCs) and must prove residency with at least 2 documents identified in the ordinance; property must be the owner's principal residence · official page ↗
  • city Short-Term Rental Unit (STRU) Operating Permit — Type 2 (non-owner-occupied, non-residential district) Required
    Fee: $120 / one_time_application · Renewal: Annual; $50 renewal fee · Applies to: STR in a non-residential district where zoning still allows residential use; owner need not be a natural person and a tenant may hold the permit with the owner's signed permission (owner remains liable); any person/entity may hold at most two (2) Type 2 permits city-wide · official page ↗
  • city City of Knoxville Business License Required
    Fee: $15 / per_jurisdiction · Renewal: Per City business tax license rules · Applies to: All STR operators (prerequisite to obtaining the STR permit) · official page ↗
  • county Knox County Business License Required
    Fee: $15 / per_jurisdiction · Renewal: Per County business tax license rules · Applies to: All STR operators (prerequisite to obtaining the STR permit) · official page ↗
  • city Life Safety Compliance Verification (smoke alarms, CO alarms, fire extinguisher) Required
    Fee: — · Renewal: — · Applies to: All STR permit applicants — self-certified affidavit (Affidavit of Life Safety Compliance); no routine inspection required, but City reserves the right to inspect · official page ↗
  • city Neighborhood / adjacent-owner notification (Type 1 permits) Conditional
    Fee: — · Renewal: Re-notify every time any operator contact details change · Applies to: Type 1 (owner-occupied) permit applicants must notify property owners abutting and directly/diagonally across the street from the STRU, plus the neighborhood group/association for the area, within two business days of applying and again whenever operator contact details change · official page ↗
  • city Occupancy privilege tax filing (quarterly) Required
    Fee: — · Renewal: Quarterly filing · Applies to: All STR operators must file quarterly; operators renting outside hosting platforms must self-remit the 3% occupancy tax (platforms such as Airbnb collect and remit automatically) · official page ↗
  • city Responsive local agent/contact Required
    Fee: — · Renewal: — · Applies to: All permit holders — a local agent/contact must be available to respond to calls or complaints within 45 minutes when the operator is away; contact details required on the application · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
City occupancy privilege tax — — — —
Tennessee state sales tax — — — —
Knox County local option sales tax — — — —

Operating rules

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

Grandfathering: {"allowed":false,"notes":"STRs were not permitted under the Zoning Code before the 1/2018 effective date; no vested right to continue an illegal use. Existing operations must apply and may be ineligible depending on zoning.","verification_status":"verified"}

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Frequently asked questions

Is Airbnb legal in Knoxville?
Short-term rentals (overnight lodging for less than 30 days) are legal in the City of Knoxville but require a Short-Term Rental Unit (STRU) operating permit under Chapter 16, Article XV of the Code of Ordinances (adopted via Ordinances No. O-245-2017 and O-284-2017; effective January 2018). A permit must be obtained BEFORE advertising or operating; staff issue a permit within fourteen business days to qualifying applicants. Two permit types exist: Type 1 (owner-occupied STR in a residentially zoned district; owner must be a natural person — no corporations/LLCs — and the property must be the owner's principal residence; $70 new / $50 renewal) and Type 2 (STR in a non-residential district where zoning still allows residential use; may be non-owner-occupied and may be held by an entity or a tenant with the owner's signed permission, but any person/entity may hold only two (2) Type 2 permits city-wide; $120 new / $50 renewal). STRs are NOT allowed in districts where the Zoning Code does not permit residential use; in residentially zoned districts only owner-occupied (Type 1) STRs are permitted (at the owner's principal residence). There is no annual cap on rental nights. There is no grandfathering — STRs were not allowed under the Zoning Code before the 1/2018 effective date, so pre-existing operations have no vested right and may be ineligible depending on zoning. Both City and County business licenses ($15 each) are also required. Taxes: a 3% city occupancy privilege tax (dedicated to Convention Center debt), plus the general Knoxville sales tax of 7% Tennessee state + 2.25% Knox County local option = 9.25% combined (sales-tax rates per state/county tax authorities; the city FAQ states a rate only for the 3% occupancy tax). Occupancy limit: 2 persons per bedroom plus 2, capped at 12 total. A local agent must respond to calls/complaints within 45 minutes when the operator is away. Enforcement uses monitoring software; operating without a permit is a code violation subject to citations and civil penalties. City FAQ last updated 10-2022.
Do I need a license or registration for a short-term rental in Knoxville?
Yes — Knoxville requires: Short-Term Rental Unit (STRU) Operating Permit — Type 1 (owner-occupied, residential district); Short-Term Rental Unit (STRU) Operating Permit — Type 2 (non-owner-occupied, non-residential district); City of Knoxville Business License. See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Knoxville?
City occupancy privilege tax, Tennessee state sales tax, Knox County local option sales tax. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

In Tennessee · Knox County

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