Knoxville, TN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 4% of room charge
- Remittance deadline
- 20th of following month
- Late penalty
- 12% annual interest + 1%/month
- Applies to STRs
- Yes, per § 16-651
Summary
Knoxville levies a 4% privilege tax on hotel occupancy that operators must collect from guests and remit monthly, and the city treats short-term rental stays the same way.
There is hereby levied a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount of four (4) percent of the consideration charged by the operator. Said tax so imposed is a privilege tax upon the transient occupying said room and is to be collected and distributed as hereinafter provided.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 80).
Full Breakdown
City Code § 16-522 levies a 4 percent privilege tax on the consideration charged for occupancy of any hotel room by a transient (a stay of less than 30 days), which the operator must add to each invoice, collect, and remit to the city department of revenue by the 20th of the following month under § 16-524. Delinquent remittance draws 12 percent annual interest plus a 1 percent monthly penalty under § 16-526. Section 16-651 extends the same hotel occupancy privilege tax obligation to short-term rental unit operators, on top of state sales tax and gross receipts tax.
Violations & Fines
Willful refusal by an operator to collect or remit the tax, or by a transient to pay it, is a misdemeanor under § 16-526, applied per transaction.
Frequently Asked Questions
Do Knoxville short-term rentals owe hotel tax?
Who actually pays Knoxville's hotel occupancy tax?
Sources & Official References
Other rules in Knoxville
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