Hotel guests in Chattanooga pay roughly 16 percent in combined lodging taxes. The breakdown is 4 percent city occupancy tax, 5 percent Hamilton County occupancy tax, and 7 percent Tennessee state sales tax, plus local option sales tax on the room rate.
Chattanooga imposes a 4 percent hotel occupancy privilege tax on rooms rented for under 30 days, collected by the City Treasurer. Hamilton County levies an additional 5 percent county hotel-motel tax. Tennessee state sales tax of 7 percent and local option sales tax of 2.25 percent also apply, pushing the effective rate near 16 percent. Operators must file monthly returns even when no rooms were rented. Type 1 and Type 2 short-term rentals registered under Chapter 38 collect the same lodging taxes.
Hotels and short-term rental operators that fail to remit collected occupancy taxes face penalties, interest, and potential business license revocation by the City Treasurer.
Chattanooga, TN
Chattanooga regulates short-term vacation rentals (STVRs) under Article XVII of the zoning code. A two-tiered system distinguishes homestays (owner-occupied)...
Chattanooga, TN
Chattanooga STVR operators must collect and remit the Hamilton County hotel/motel tax and the Tennessee state sales tax on accommodation. The combined rate i...
See how Chattanooga's transient occupancy tax rules stack up against other locations.
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