Short-Term Rental Tax in Tennessee (TN)
The state-level tax rate on short-term rentals in Tennessee is 7.0% , consisting of 7.0% sales tax and 0.0% lodging tax. Tennessee applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Nashville reaches 16.3%. STR operators must register with the state. Tennessee charges a 7% state sales tax on short-term rentals (less than 90 days). No state lodging tax, but counties and cities impose hotel-motel taxes of 3-7%. Nashville has one of the highest combined rates.
Annual Tax Estimate for Tennessee
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Nashville).
| Nightly Rate | Gross Revenue | State Tax (7.0%) | Nashville Tax (16.3%) |
|---|---|---|---|
| $100.00/night | $23,700 | $1,659 | $3,851 |
| $150.00/night | $35,550 | $2,489 | $5,777 |
| $200.00/night | $47,400 | $3,318 | $7,703 |
| $300.00/night | $71,100 | $4,977 | $11,554 |
| $500.00/night | $118,500 | $8,295 | $19,256 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Tennessee
Local taxes significantly impact the total STR tax burden in Tennessee. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 16.3% in Nashville.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Nashville | 9.3% | 16.3% | $32.50 | Very High | Davidson County 2.25% local sales + 6% convention center + 1% sports authority. STR permit required. |
| Memphis | 5.3% | 12.3% | $24.50 | High | Shelby County 2.25% local sales + 3% hotel-motel tax. |
| Chattanooga | 5.3% | 12.3% | $24.50 | High | Hamilton County 2.25% local sales + 3% hotel-motel tax. |
| Gatlinburg/Pigeon Forge | 5.0% | 12.0% | $24.00 | High | Sevier County 5% hotel-motel tax. Gateway to Smoky Mountains. |
How Tennessee Compares to Other States
Below is a comparison of Tennessee with five states that have similar state-level STR tax rates. This comparison helps illustrate where Tennessee stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Tennessee (TN) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Indiana (IN) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Kentucky (KY) | 7.0% | 6.0% | 1.0% | Yes | Required |
| Mississippi (MS) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Minnesota (MN) | 6.9% | 6.9% | 0.0% | Yes | Required |
| Nevada (NV) | 6.8% | 6.8% | 0.0% | Yes | Required |
Frequently Asked Questions About Tennessee STR Taxes
What is the short-term rental tax rate in Tennessee in 2026?
The state-level tax rate on short-term rentals in Tennessee is 7.0%, consisting of 7.0% sales tax and 0.0% lodging tax. Local taxes can bring the total to 16.3% in cities like Nashville. At $200/night with 65% occupancy, the state-level tax alone is approximately $3,318 per year.
Does Airbnb collect STR taxes in Tennessee?
Yes. Airbnb, Vrbo collect state sales tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Tennessee?
Yes. Tennessee requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Tennessee also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Nashville, Tennessee?
The total combined tax rate in Nashville is 16.3%, which includes the 7.0% state rate plus 9.3% in local taxes. Davidson County 2.25% local sales + 6% convention center + 1% sports authority. STR permit required. At $200/night with 65% occupancy, this amounts to approximately $7,703 per year in taxes.
How much will I owe in STR taxes in Tennessee?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (7.0%), a property earning $200/night with 65% occupancy would owe approximately $3,318/year in state taxes alone. In Nashville, the total tax at the same rate would be approximately $7,703/year. Use our STR tax calculator for a customized estimate.
Calculate Your Tennessee STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Tennessee. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.