Tennessee imposes statewide sales tax on short-term rental stays and authorizes local hotel-motel occupancy taxes, with marketplace facilitators required to collect on behalf of hosts.
Tennessee applies its 7% state sales tax plus local option sales tax to short-term rental charges under TCA 67-6-202 and TCA 67-4-1425. Marketplace facilitators like Airbnb and Vrbo must collect and remit these taxes for hosts under TCA 67-6-501 et seq. Local governments may impose hotel-motel occupancy taxes (typically 2-7%) authorized under TCA 67-4-1401. Hosts renting outside marketplace platforms must register with the Department of Revenue and remit taxes directly. Failure to collect or remit results in personal liability for the unpaid tax.
Failing to collect or remit sales tax can result in assessments, penalties up to 25%, and interest under TCA 67-1-801.
See how Kingsport's taxes & fees rules stack up against other locations.
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