Short-Term Rental Regulations in Tennessee (TN)
Tennessee has a light level of short-term rental regulation. STR-friendly. No statewide STR registration is required. No state-level license is needed. Platforms like Airbnb collect and remit taxes. Tennessee preempts local governments from banning owner-occupied STRs (2023 law). Non-owner-occupied may still be regulated locally. State sales tax (7%) and local option hotel/motel tax apply. Platforms collect and remit. Nashville has the most significant local regulations.
Full Requirements Summary
Tennessee has 0 key regulatory requirements at the state level. The table below summarizes all state-level STR regulations. Note that individual cities may have additional requirements beyond what the state mandates.
| Requirement | Status | Details |
|---|---|---|
| STRs Allowed | Yes | Short-term rentals are legal |
| Statewide Law | Yes | State has specific STR legislation |
| Registration Required | No | No state registration needed |
| License Required | No | No state-level license |
| Primary Residence Only | No | Investment properties allowed |
| Maximum Nights/Year | No limit | No annual night limit at state level |
| Minimum Stay | No minimum | No minimum stay requirement |
| Host Presence Required | No | Un-hosted stays allowed |
| Insurance Required | No | No state insurance mandate |
| Safety Inspection | No | No state-required inspection |
| Platform Tax Collection | Yes | Platforms collect and remit taxes |
City-Level STR Regulations in Tennessee
STR regulations vary by city within Tennessee. The table below shows restriction levels and local notes for 5 cities. City-level rules may be more or less restrictive than the state average.
| City | Restriction Level | Local Notes |
|---|---|---|
| Nashville | Heavy | Non-owner-occupied STR permits limited. Owner-occupied permits allowed in all zones per state law. Annual permit required. Hotel tax applies. Cap on non-owner-occupied permits in residential areas. |
| Memphis | Moderate | STR permit required. Must comply with zoning. Hotel/motel tax applies. |
| Chattanooga | Moderate | STR permit required. Zoning compliance needed. Hotel tax applies. |
| Gatlinburg | Light | Major vacation rental market near Smoky Mountains. Business license and hotel tax apply. STR-friendly. |
| Pigeon Forge | Light | Tourism-driven economy. STR business license required. Hotel tax applies. Very STR-friendly. |
How Tennessee Compares to Other States
Below is a comparison of Tennessee with five states that have similar STR regulation levels. This helps illustrate where Tennessee stands nationally in terms of short-term rental friendliness.
| State | Restriction Level | Registration | License | Night Cap | Platform Tax |
|---|---|---|---|---|---|
| Tennessee (TN) | Light | No | No | No limit | Yes |
| Arizona (AZ) | Light | Yes | Yes | No limit | Yes |
| Connecticut (CT) | Light | Yes | No | No limit | Yes |
| Delaware (DE) | Light | No | Yes | No limit | No |
| Idaho (ID) | Light | No | No | No limit | No |
| Iowa (IA) | Light | No | No | No limit | Yes |
Frequently Asked Questions About Tennessee STR Regulations
Can I legally operate an Airbnb in Tennessee?
Yes, short-term rentals are legal in Tennessee. No state-level registration is required, though your city may have its own requirements. The state's overall restriction level is light. Always check your local city and county regulations before listing.
Do I need a permit or license for an Airbnb in Tennessee?
Tennessee does not require a state-level STR license. Individual cities in Tennessee may have their own permit requirements even if the state does not mandate one. Check the city-level details above for specifics.
Does Airbnb collect taxes in Tennessee?
Yes, Tennessee has a platform accountability law. Airbnb and other platforms collect and remit applicable state and/or local taxes on behalf of hosts. Always verify your tax obligations with your local tax authority.
Which city in Tennessee has the strictest Airbnb rules?
Among the cities we track, Nashville has the most restrictive STR regulations in Tennessee with a heavy restriction level. Non-owner-occupied STR permits limited. Owner-occupied permits allowed in all zones per state law. Annual permit required. Hotel tax applies. Cap on non-owner-occupied permits in residential areas.
Where can I find the most current STR rules for Tennessee?
STR regulations change frequently. For the most current information, check your Tennessee state legislature website, your city or county clerk's office, or your local planning/zoning department. Our data reflects regulations as of early 2026, but always verify before listing a property.
Check Another State or City
Use our STR regulation lookup tool to find the exact rules for your specific city in Tennessee, or browse all 50 states to compare short-term rental friendliness across the country. Remember: city-level rules often differ significantly from the state-level picture.