The Complete Tennessee Airbnb Host Lodging Tax Guide: Airbnb Tennessee Occupancy Tax Breakdown

Navigating the complex world of lodging and occupancy taxes is essential for success as an Airbnb host in Tennessee. Understanding your tax obligations not only keeps you compliant with local and state laws but also helps you accurately price your rental to maintain profitability. Our guide breaks down the various tax requirements across Tennessee, providing clear examples to help you understand exactly what you'll need to collect and remit as a short-term rental host.

State-wide Lodging and Occupancy Taxes in Tennessee

Short-term rental properties in Tennessee are subject to several state-wide taxes that apply uniformly across all locations:

• State Sales Tax: 7% on all short-term rentals
• Local Sales Tax: Varies by county and municipality, typically ranging from 1.50% to 2.75%. You can check out the specific local sales tax for your area in

These taxes apply to all short-term rental transactions lasting less than 90 continuous days. Property owners, marketplace facilitators (like Airbnb and VRBO), and property management companies with over $100 a month in taxable service sales must register with the Tennessee Department of Revenue and remit these taxes.

For rentals not made through a marketplace platform (e.g., direct bookings), the property owner is responsible for collecting and remitting both sales tax to the Department of Revenue and local occupancy tax directly to the local jurisdiction where the property is located.

City and County-Specific Tax Requirements

Beyond the state-level taxes that apply to all short-term rental operators in Tennessee, many cities and counties have implemented their own specific tax requirements that hosts must navigate. These local tax obligations vary significantly across Tennessee's diverse regions, from the bustling streets of Nashville to the mountain retreats of Sevier County.

Anderson County

Anderson County in Tennessee imposes a 5% county lodging tax on short-term rentals throughout the county, except in municipalities that have their own specific tax structures. When combined with Tennessee's 7% state sales tax and Anderson County's local sales tax rate of 2.75%, the total tax rate for lodging in unincorporated areas of Anderson County reaches 14.75%.

It's worth noting that as of April 2025, there have been discussions about potential changes to the occupancy tax structure in the county. Property owners operating short-term rentals in Anderson County should verify current rates with county tax authorities as rates may quickly change.

Clinton

Clinton imposes an additional 3% city lodging tax on short-term rentals, bringing the total local lodging tax to 8% when combined with Anderson County's 5% tax. This creates a total tax rate of 17.75% when factoring in Tennessee's 7% state sales tax and the local 2.75% sales tax.

Oak Ridge

Oak Ridge charges a 5% city lodging tax on accommodations within its jurisdiction. The city spans both Anderson and Roane counties, with consistent tax rates maintained across both portions. When combined with state and local sales taxes, the total tax rate for lodging in Oak Ridge reaches 14.75%.

Oliver Springs

Oliver Springs levies a 5% city lodging tax on short-term rentals. This municipality uniquely spans three counties - Anderson, Morgan, and Roane - yet maintains a uniform 9.75% combined sales tax rate throughout all portions of the city, regardless of which county the property is located in.

Campbell County

Campbell County imposes a 5% county lodging tax on short-term rentals throughout the unincorporated areas of the county. This tax is authorized by the Tennessee General Assembly and is collected from transient guests staying in hotels, motels, and other accommodations. When combined with Tennessee's 7% state sales tax and Campbell County's 2.25% local sales tax, the total tax rate reaches 14.25%.

Caryville

Caryville levies a 5% city lodging tax on accommodations within its municipal boundaries. This city tax applies in addition to the state sales tax of 7% and Campbell County's local sales tax of 2.25%, creating a combined tax rate of 14.25% for lodging in Caryville. The city maintains this tax rate as part of its revenue structure for local services.

Jellico

Jellico, along the Tennessee-Kentucky border, charges a 5% city lodging tax on short-term rentals. This municipal tax is applied to the total amount paid for accommodations within city limits. Combined with Tennessee's 7% state sales tax and Campbell County's 2.25% local sales tax, guests in Jellico pay a total tax rate of 14.25% on their stays.

Rocky Top

Rocky Top (formerly Lake City) in Campbell County implements a 5% city lodging tax plus an additional 0.5% county tax specifically for this municipality. This creates a slightly higher tax burden than other Campbell County cities. When added to Tennessee's 7% state sales tax and the county's 2.25% local sales tax, the total lodging tax rate in Rocky Top reaches 14.75% as of April 2025.

Cannon County

Cannon County imposes a 5% county lodging tax on short-term rentals throughout its jurisdiction. When combined with Tennessee's 7% state sales tax and the county's local sales tax rate of 1.75%, the total tax rate for accommodations in Cannon County reaches 13.75%. This tax applies to all overnight stays in hotels, motels, and vacation rentals within the county boundaries.

Hardeman County

Hardeman County levies a 5% county lodging tax on all short-term accommodations. The total tax burden for guests staying in Hardeman County reaches 14.75% when adding Tennessee's 7% state sales tax and the county's 2.75% local sales tax. This tax structure has remained consistent through April 2025, providing stable revenue for county tourism initiatives.

Hardin County

Hardin County implements a 5% county lodging tax on short-term rentals in unincorporated areas. As of April 2025, the county's local sales tax rate is 2.75%, which combined with Tennessee's 7% state sales tax and the lodging tax, creates a total tax rate of 14.75% for accommodations outside city jurisdictions within the county.

Adamsville

Adamsville charges an additional 5% city lodging tax on top of the county's 5% tax. This creates a substantial 10% combined local lodging tax burden. When factoring in Tennessee's 7% state sales tax and the 2.50% local sales tax, guests in Adamsville pay a total tax rate of 19.50%.

Savannah

Savannah imposes an additional 5% city lodging tax alongside the county's 5% lodging tax. This results in a 10% combined local lodging tax. With Tennessee's 7% state sales tax and the current 2.75% local sales tax rate, the total tax burden for accommodations in Savannah reaches 19.75% as of April 2025.

Jefferson County

Jefferson County imposes a 4% county lodging tax on short-term rentals throughout its jurisdiction. When combined with Tennessee's 7% state sales tax and the county's local sales tax rate of 2.75%, the total tax rate for accommodations in Jefferson County reaches 13.75%. This tax applies to all overnight stays in hotels, motels, and vacation rentals within the county boundaries.

Mountain City

Mountain City levies a 5% city lodging tax on accommodations within its municipal limits. The city does not have a county-wide lodging tax to supplement this rate. With Tennessee's 7% state sales tax and Johnson County's modest 1.50% local sales tax, the total tax burden for lodging in Mountain City reaches 13.50%.

Knox County

Knox County implements a 5% county lodging tax on all short-term accommodations outside of Knoxville city limits. When added to Tennessee's 7% state sales tax and Knox County's 2.25% local sales tax, the total tax rate for lodging in unincorporated areas of Knox County reaches 14.25%. This tax structure has remained consistent through the current tax year.

Knoxville

Knoxville charges an additional 3% city lodging tax on top of Knox County's 5% tax. This creates a substantial 8% combined local lodging tax burden. With Tennessee's 7% state sales tax and the 2.25% local sales tax, guests in Knoxville pay a total tax rate of 17.25%. A proposal to increase the city rate by 1% to 4% is currently under consideration.

Sevier County

Sevier County charges a 3% lodging tax for overnight rentals outside the city limits of Sevierville, Pigeon Forge, Pittman Center, and Gatlinburg. Half of the proceeds fund tourism and infrastructure, while the other half supports education. When combined with Tennessee's 7% state sales tax and the county's 2.75% local sales tax, the total tax rate reaches 12.75%.

Johnson City

Johnson City imposes a 7% Hotel/Motel Transient Occupancy Privilege Tax on all short-term accommodations within city limits. The total tax burden varies depending on which county portion of Johnson City the property is located in. As of April 2025, properties in the Washington County portion face a 16.5% total tax rate, while those in the Sullivan County portion pay a slightly lower 16.25% total tax rate. Properties in the Carter County section of Johnson City bear the highest burden at 16.75% total tax. This variation results from different county-level local sales tax rates: Washington County (2.5%), Sullivan County (2.25%), and Carter County (2.75%).

Memphis

Memphis levies a city lodging tax on short-term rentals, with rates varying based on property type and location. The current structure includes a 3.5% city lodging tax and a 5% county lodging tax. When added to Tennessee's 7% state sales tax and Shelby County's 2.25% local sales tax, the total tax rate for accommodations in Memphis reaches approximately 17.75%.

Chattanooga

Chattanooga implements a 4% city lodging tax on short-term rentals within city limits. Hamilton County, where Chattanooga is located, adds its own 4% county lodging tax. Combined with Tennessee's 7% state sales tax and the local 2.25% sales tax, guests staying in Chattanooga accommodations face a total tax rate of approximately 17.25%.

Nashville

Nashville imposes a 6% hotel occupancy tax on all short-term accommodations within Davidson County. When combined with Tennessee's 7% state sales tax and the 2.25% local sales tax, the total tax burden for lodging in Nashville reaches 15.25%. This tax structure helps fund the city's tourism initiatives and convention center operations.

Example Calculation for a Property in Nashville

A 3-night stay at $145 per night:

• Total nightly Rate: $145 x 3 = $435
• Cleaning Fee: $150
• Total Listing Price for a 5-night stay: ($145 ×3) + $150 = $585
• Tennessee State Sales Tax (7%): $585 × 0.07 = $40.95
• Local Sales Tax (2.25%): $585 × 0.0225 = $13.1625
• Nashville Hotel Occupancy Tax (6%): $585 × 0.06 = $35.1
• Total Taxes: $89.2125
• Total Guest Payment: $585 + $89.2125 = $674.2125

Wrapping Things Up

By understanding and properly managing your tax obligations, you'll be well-positioned to run a successful and compliant Airbnb business in Tennessee's thriving tourism market.

Remember that tax regulations can change, and this guide provides a general overview. Always consult with a tax professional familiar with short-term rental operations in your specific area to ensure complete compliance with all applicable tax laws.