Knox County, TN

Knoxville, TN short-term rental permit

A host in Knoxville needs one of two city permits, and the one for residentially zoned neighborhoods is open only to owner-occupants. You file with the Business Tax Office, which also issues the yearly renewal.[5]

Every rule below links to the official source it comes from, verified October 2, 2026.

Can you rent short term in Knoxville?

Get a permit first

What you apply for: Short-term rental unit permit, Type 1 or Type 2

Seasonal homes
851
Housing units
96,441
Residents
195,185

U.S. Census Bureau, 2024 ACS 5-year estimates

  • City rulePermit required
  • City feeNone published
  • Tax on each staySet locally
  • Seasonal homes9 per 1,000

Knoxville short-term rental permit

Knoxville issues two short-term rental permits, and which one you can get depends on whether you live in the property and where it sits. A Type 1 permit is available only to owner-occupants of the property being rented, in whole or in part, in residentially zoned neighborhoods. A Type 2 permit goes to owners of residential property in non-residential districts, and for that one you do not have to be the resident. Applications and annual renewals are both handled by the city's Business Tax Office rather than by planning. Tennessee's Short-Term Rental Unit Act adds a layer. Check it before you assume the current rules bind you. A property already used as a short-term rental before an ordinance took effect keeps the rules that applied when it started. That holds until it is sold, transferred, left unused as a rental for thirty continuous months, or in violation three separate times.[5]

What Knoxville asks of you

  • Type 1 permits are available only to owner-occupants of the property being rented, in whole or in part, in residentially zoned neighborhoods.[5]

  • Type 2 permits are for owners of residential property in non-residential districts, and you do not have to live in the property to apply.[5]

  • Applications for short-term rental unit permits and their annual renewals are accepted and issued through the city's Business Tax Office.[5]

  • Under the state legacy clause, a property already used as a short-term rental before an ordinance took effect keeps the rules that applied when it started. That lasts until it is sold, transferred, left unused for thirty continuous months or in violation three times.[1]

Apply on the Knoxville site

What Tennessee asks wherever you host

These rules apply at this address whatever the city decides.

  • Tennessee's definition covers a residential dwelling rented for a fee, in whole or in part, for under thirty continuous days. Hotels fall outside it, as do bed-and-breakfast establishments.[1]

  • A local ordinance passed after a property began operating as a short-term rental does not reach that property. The rules in place when it started keep governing it. A sale or other transfer ends that protection. Thirty continuous months without rental use end it as well. Three separate breaches of a generally applicable local law have the same effect.[1]

  • A city with a permit or application process may suspend a property's use while it lacks a permit. That power holds only when the city's requirements are reasonable.[1]

Tennessee short-term rental rules

What a guest pays on top of your nightly rate in Knoxville

Each layer is set by a different authority, and not all of them are collected by the platform.

Short-term rental tax layers in Knoxville
LayerRateRemitted to
Tennessee state sales tax[3]7%The state revenue department
Local sales tax[4]2.25%The state revenue department
City room occupancy tax[2]Not publishedThe city

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.[2]

What the census counts

How much of Knoxville is already a second home

The Census Bureau counts 851 of Knoxville's 96,441 homes as vacant for seasonal, recreational or occasional use. That is 9 out of every 1,000. It ranks Knoxville 7th of the 9 Tennessee cities on this site for the share of its housing stock kept for part-year use.

Rank in the state
7th of 9
Share of housing
9 per 1,000
Median home value
$239,700

U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.

Nearby and comparable

Where Knoxville sits among its neighbors

Nashville, TN

Restricted by zone

If you live in the home, apply for an owner-occupied permit. New non-owner-occupied permits are not issued in AR2A, R, RS or RM zones.

Nashville short-term rental rules

Sevierville, TN

Permit required

310 seasonal homes, 32 per 1,000 housing units.

Sevierville short-term rental rules

Townsend, TN

Permit required

141 seasonal homes, 288 per 1,000 housing units.

Townsend short-term rental rules

Johnson City, TN

No city ordinance

271 seasonal homes, 8 per 1,000 housing units.

Johnson City short-term rental rules
StatewideEvery Tennessee city on this site, in one tableState law, the tax stack and every city we cover in Tennessee, with what each one asks of a host.Tennessee short-term rental rules

FAQ

Knoxville short-term rental questions

What is the difference between a Type 1 and Type 2 permit in Knoxville?

Type 1 is for owner-occupants renting a property they live in, in residentially zoned neighborhoods. Type 2 is for residential property in non-residential districts, and does not require you to live there.[5]

Where do I apply for a Knoxville short-term rental permit?

Through the city's Business Tax Office, which handles both the initial application and the annual renewal.[5]
Read nextHow to start an AirbnbThe six steps in order, starting with the permit check.Read the guide

Sources

  1. Public Chapter 972, Acts of 2018, the Short-Term Rental Unit Act, Tennessee Secretary of State, read on September 20, 2026
  2. Room Occupancy Tax, municipal finance reference, Municipal Technical Advisory Service, University of Tennessee, read on September 20, 2026
  3. Taxation of Short-Term Rental Units, June 2026, Tennessee Department of Revenue, read on October 2, 2026
  4. Tennessee sales tax rate file, fourth quarter 2026 (TNR2026Q4AUG21), Tennessee Department of Revenue, through the Streamlined Sales Tax Governing Board, read on October 2, 2026
  5. Short-Term Rentals, Business License Tax Office, City of Knoxville, read on September 20, 2026

This page is not legal advice. It summarizes the official sources listed on this page as they read on October 2, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.

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