Hotels and short-term rentals in Memphis collect a combined 13.7% lodging tax: 5% Memphis hotel-motel tax, 1.7% Shelby County tourism tax, plus 7% Tennessee state sales tax. Revenue funds tourism marketing, FedExForum, and convention facilities.
Memphis Code authorizes a 5% city hotel-motel occupancy tax under enabling state law (TCA 67-4-1401), Shelby County adds 1.7% for tourism and convention purposes, and Tennessee imposes 7% state sales tax on lodging. Total 13.7% applies to room charges plus mandatory fees. Operators file monthly with the city Treasury and quarterly with state Revenue. The tax funds Memphis Tourism marketing, FedExForum debt service, Renasant Convention Center operations, and Beale Street infrastructure. Short-term rentals (Airbnb, Vrbo) collect identically; platforms remit on behalf of hosts.
Failure to collect or remit triggers state and city tax liens, 25% penalty, interest, and possible business-license revocation plus criminal tax-evasion charges.
See how Memphis's transient occupancy tax rules stack up against other locations.
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