Nashville's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Nashville, Tennessee, there are 3 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Transient Occupancy Tax

Nashville imposes a 6% Metro hotel occupancy privilege tax plus a 1% tourism surcharge on top of the 7% Tennessee state sales tax for stays under 30 continuous days.

Key details: Metro privilege tax: 6% of room charge. Tourism surcharge: 1% additional. TN state sales tax: 7% on lodging. Long-stay exemption: 30+ continuous days. Filing frequency: Monthly by 20th.

Failure to collect or remit the privilege tax results in penalties of 1% per month plus interest, license revocation, and personal liability for the operator. Knowingly failing to remit collected taxes is a Class A misdemeanor.

Hotel Worker Retention

Nashville does not require hotel new-owner worker retention. Tennessee right-to-work and at-will employment laws make Los Angeles-style retention mandates politically and legally difficult to enact at the local level.

Key details: Local retention law: None enacted. TN preemption: TCA 50-2-112 wages. Right-to-work: TCA 50-1-201. Federal floor: WARN Act 100+ employees.

No Metro violation framework exists since the protection is not codified locally. Affected workers must rely on federal WARN Act notice for mass layoffs over 100 employees or contractual provisions in any collective bargaining agreement.

The rules around hotel worker retention in Nashville lean permissive, but that does not mean anything goes.

Hotel Living Wage

Nashville cannot impose a hotel-specific living wage. Tennessee preempts local minimum wage and benefit mandates statewide, leaving hotel housekeepers and food service workers covered only by the federal $7.25 floor.

Key details: Effective minimum wage: Federal $7.25/hour. Tipped wage: $2.13 with tip credit. TN state minimum: None set. Local preemption: TCA 50-2-112. Metro contractor policy: Internal only.

No local enforcement mechanism applies because no living wage ordinance covers private hotels. Workers paid below the federal minimum may file U.S. Department of Labor Wage and Hour Division complaints under the FLSA.

If you are coming from a city with tighter rules, you will find Nashville gives residents more flexibility on hotel living wage.

The Bottom Line

Compared to many U.S. cities, Nashville gives residents more room on hotels & lodging. 2 of the 3 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

This guide is based on Nashville's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.