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]
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]
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.
| Layer | Rate | Remitted 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 published | The 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 rulesSevierville, TN
Permit required
310 seasonal homes, 32 per 1,000 housing units.
Sevierville short-term rental rulesTownsend, TN
Permit required
141 seasonal homes, 288 per 1,000 housing units.
Townsend short-term rental rulesJohnson City, TN
No city ordinance
271 seasonal homes, 8 per 1,000 housing units.
Johnson City short-term rental rulesFAQ
Knoxville short-term rental questions
What is the difference between a Type 1 and Type 2 permit in Knoxville?
Where do I apply for a Knoxville short-term rental permit?
Sources
- Public Chapter 972, Acts of 2018, the Short-Term Rental Unit Act, Tennessee Secretary of State, read on September 20, 2026
- Room Occupancy Tax, municipal finance reference, Municipal Technical Advisory Service, University of Tennessee, read on September 20, 2026
- Taxation of Short-Term Rental Units, June 2026, Tennessee Department of Revenue, read on October 2, 2026
- 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
- 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.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
Airbnb host fee calculator
What Airbnb's 15.5% single fee takes from a booking, and the nightly rate that keeps your payout after the split fee.
Airbnb house rules
Generate a complete PDF house rules document for your property: rules, schedule, amenities, emergency contacts.
Check-in instructions
The message a guest reads before getting in: access, keys, WiFi, parking, contact. English or bilingual output.