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Tennessee Vacation Rental Tax Calculator
Estimate your property tax, lodging tax, federal income tax, and depreciation deductions for your Tennessee vacation rental property.
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Enter your details below to see your personalized vacation rental tax breakdown.
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What Taxes Apply to Tennessee Short-Term Rentals?
Tennessee STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.
Sales Tax
Tennessee applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 17.25%. Cities may add local sales tax on top.
Occupancy / Transient Lodging Tax
Tennessee's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 17.25% in Nashville and 17.77% in Memphis. This includes state, county, and city-level components.
Tourism / Convention Center Tax
Some Tennessee cities levy additional tourism, convention center, or special district taxes that add 1–3% to your total rate. In Nashville, the combined rate of 17.25% already includes these surcharges.
Federal Income Tax
Tennessee has no state income tax — a significant advantage for STR owners. Your net rental profit is only subject to federal income tax, reported on Schedule E (Form 1040). 2026 federal rates range from 10% to 37%.
Property Tax
Tennessee's average effective property tax rate is 0.71%. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.
Does Airbnb Collect and Remit Taxes in Tennessee?
Airbnb has agreements to collect and remit taxes in Tennessee — but coverage is not always complete.
- Airbnb collects Tennessee's state-level lodging tax in most jurisdictions.
- In Nashville and Memphis: Airbnb may or may not collect all county/city taxes.
- Rural areas: You're often fully responsible for all local tax collection.
- Even where Airbnb collects, you may owe additional local levies or special district taxes.
Bottom line: Never assume Airbnb handles all your Tennessee tax obligations. Verify with your local tax authority.
Do You Need a Tax Permit in Tennessee?
Yes. Tennessee has significant STR regulation. Most jurisdictions require permits and licenses before you can operate.
- State sales tax permit / seller's permit
- City or county business license
- Short-term rental operating permit
- Lodging tax registration certificate
- Zoning compliance certificate
- Fire safety inspection certificate
Consequences of non-compliance
5–25% penalties on unpaid taxes in Tennessee
Revocation of rental permit
Liens on your property
Short-Term Rental Taxes in Tennessee
Key tax facts every vacation rental host in Tennessee should know.
No state income tax
State sales tax: 7% (applies to lodging)
Local hotel taxes: 5–10% additional
Property tax rate: ~0.71%
Lodging Tax Rates by City in Tennessee
Combined lodging/occupancy tax rates for major vacation rental markets in Tennessee.
7% state + 2.5% county + 6% metro + 1.75% special
7% state + 2.25% county + 5.02% city + 3.5% tourism
7% state + 3% county + 2.75% city
Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.
FAQs About Tennessee Vacation Rental Taxes
Common questions about short-term rental taxes, permits, and compliance in Tennessee.
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