Tennessee, checked October 2, 2026

Tennessee occupancy tax for short-term rentals: what hosts collect and file

Local governments in Tennessee levy the occupancy tax on a short-term rental, while the Department of Revenue collects both state and local sales tax. Booking platforms collect them all. Book a guest directly, and you file the sales tax with the state. The occupancy tax then goes to the city or county.^[1]

Sources last checked on October 2, 2026.

State tax7% + Not published
Total by city12.75% to 14.25%2 of 9 cities publish every rate
Airbnb collectsState, local and occupancy taxes
Cleaning feeTaxed

Tennessee short-term rental tax

Any Tennessee short-term rental stay shorter than 90 days owes sales tax. The rate is 7% for the state plus a local 1.50% to 2.75%. Cities and counties add an occupancy tax. When a marketplace handles the booking, it collects both taxes. It then remits the occupancy tax to the Department of Revenue rather than to the locality.^[1]

What the state of Tennessee charges

State taxes on a short-term rental stay in Tennessee
Tax	Rate	Applies to	Long stays	Paid to
Tennessee state sales tax^[1]	7%	The sales price of the rental, required cleaning fees and guest booking fees included.	When the same person occupies the unit for 90 continuous days or more, the stay is not taxed. Cancellation fees are not taxed either.	Tennessee Department of Revenue
Local sales tax^[1]	Not publishedSet by each county or city, from 1.50% to 2.75%. The Department of Revenue collects it with the state tax.	The same sales price as the state tax, on the same stays.	The state tax's 90-day exemption carries over to it.	Tennessee Department of Revenue

Local taxes in 9 Tennessee cities

Counties and cities add their own rates. A city with a layer that has no published rate gets no total.

Short-term rental tax layers by city in Tennessee
City	Tax layers	Total
Bristol short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.25% City room occupancy tax 5% Bristol's tax rests on Ordinance No. 92-21 of June 30, 1992. Operators remit what they collect to the city treasurer every month.	14.25%
Chattanooga short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.25% City room occupancy tax Not published A Tennessee city levies its room occupancy tax by ordinance, and the rate may not exceed four percent where it rests on T.C.A. § 67-4-1402. Where the tax was levied after July 1, 2021, the revenue must fund tourism promotion.	Not published
Gatlinburg short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.75% City room occupancy tax Not published Gatlinburg's 1.25 percent gross receipts tax is not in this table because it is not charged to the guest: the city says it comes from the owner. The room occupancy tax a guest does pay is levied by ordinance and capped at four percent where it rests on T.C.A. § 67-4-1402.	Not published
Johnson City short-term rental rules	Tennessee state sales tax 7% Local sales tax Not published City room occupancy tax 7% Johnson City is split across three counties. Its local sales tax is 2.5% in Washington, 2.75% in Carter and 2.25% in Sullivan. Counting the 7% state rate plus the city's 7%, a stay totals 16.5%, 16.75% or 16.25%.	Not published
Kingsport short-term rental rules	Tennessee state sales tax 7% Local sales tax Not published City room occupancy tax 7% Under section 94-75, the operator collects the tax when the invoice is presented, whether before the stay or after it. Payment goes to the city treasurer.	Not published
Knoxville short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.25% City room occupancy tax Not published The city room occupancy tax is levied by ordinance and capped at four percent where it rests on T.C.A. § 67-4-1402. It comes on top of the state and local sales tax that applies to the stay.	Not published
Memphis short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.75% City room occupancy tax Not published A Tennessee city levies its room occupancy tax by ordinance, capped at four percent where it rests on T.C.A. § 67-4-1402. Memphis publishes its short-term room occupancy tax form separately from the permit pages.	Not published
Sevierville short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.75% City room occupancy tax Not published Sevier County and its cities levy the room occupancy tax on the stay. A Tennessee municipal tax may not exceed four percent where it rests on T.C.A. § 67-4-1402, and a tax levied after July 1, 2021 must fund tourism promotion.	Not published
Townsend short-term rental rules	Tennessee state sales tax 7% Local sales tax 2.75% City room occupancy tax 3% Townsend's 3% applies to stays on or after May 1, 2026. Platforms like Airbnb may remit it on the owner's behalf. The city still holds the owner responsible for compliance.	12.75%

Tax on a three-night stay in Bristol

Take 3 nights at $200 plus a $100 cleaning fee in Bristol, the largest Tennessee city here with a rate on every layer. The cleaning fee counts toward the taxable amount.

Rent, 3 nights: $600.00
Cleaning fee: $100.00
Taxable amount: $700.00
Tennessee state sales tax (7%): $49.00
Local sales tax (2.25%): $15.75
City room occupancy tax (5%): $35.00
Tax on the stay: $99.75
Guest pays: $799.75

What Airbnb and Vrbo collect in Tennessee

Airbnb

State, local and occupancy taxes

Airbnb's Tennessee tax combines the 7% state sales tax with a local sales tax of 1.50% to 2.75%. It applies to reservations up to 89 nights. Cleaning and guest fees are included. Airbnb also collects every local occupancy tax, usually on the first 30 days.^[4]

Vrbo

Sales tax and local lodging tax

For any stay under 90 nights, Vrbo has collected Tennessee state and local sales tax since October 1, 2020. Local lodging tax joined its list on January 1, 2021.^[5]

How to register and file in Tennessee

Register in the Tennessee Taxpayer Access Point, under Register a New Business, before you rent the unit directly. The duty applies above $100 a month of taxable sales.^[1]

Filing: Hosts file one sales and use tax return a month in TNTAP, with the 20th of the next month as the deadline. It carries both the 7% state tax and the local tax of the unit's location. Report $0 for any month without sales.^[1]
Cleaning fees: A required cleaning fee is part of the sales price, so it carries sales tax. The local occupancy tax counts it in its base as well.^[1]
Service fees: Guest booking fees belong to the sales price, like non-refundable pet deposits and damage protection fees.^[1]

Penalties in Tennessee

Late returns are penalized 5% of the tax due per 30-day period, and a partial period counts in full. It is capped at 25%.^[3]
Filing late costs at least $15.^[3]
Tax paid after the due date also draws interest, at the rate set under Tenn. Code Ann. § 67-1-801.^[3]

Calculator

Estimate the tax on a stay in Tennessee

Pick a city, then enter the nightly rate, the nights and the cleaning fee.

City in Tennessee

This is not tax advice. Confirm the rates with the tax office before you file.

Tax on this stay in Bristol

$99.75

Tennessee state sales tax (7%)$49.00

Local sales tax (2.25%)$15.75

City room occupancy tax (5%)$35.00

Taxable amount, cleaning included$700.00

Guest pays in total$799.75

Bristol short-term rental rules

Who collects it

In Bristol

Bristol's tax rests on Ordinance No. 92-21 of June 30, 1992. Operators remit what they collect to the city treasurer every month.

What's changing

Announced changes

No change announced as of October 2, 2026.

Asked by hosts

Tennessee occupancy tax: host questions

Does a Tennessee host owe sales tax on Airbnb or Vrbo bookings?

No. A marketplace facilitator is treated as the seller and collects the sales tax on those stays. Keep records showing each rental went through the platform.^[1]

Who receives the occupancy tax on a direct booking in Tennessee?

The city or county where the unit sits, not the Department of Revenue. Ask those local officials how to collect and remit it.^[1]

Is the occupancy tax refunded after a 30-day stay?

Not for agreements made on or after July 1, 2025. The first 30 days stay taxable whatever the length of the stay. The marketplace stops collecting from day 31.^[2]

Do I owe Tennessee business tax on rental income?

Only once your gross sales in a jurisdiction reach $100,000 in a tax year. Below that, an individual owner renting vacation lodging owes none.^[1]

Keep exploring

Sources