Memphis, TN Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- STR privilege tax
- 3.5% of consideration
- Marketing assessment
- $2.00 per occupied room night
- Application fee
- $300.00, non-refundable
- Renewal fee
- $150.00 every 365 days
- Unpermitted operation penalty
- Double fees once permitted
Summary
Memphis short-term rental owners pay a 3.5% privilege tax on top of a $2.00-per-night marketing assessment under City Code § 5-44-4, plus a $300.00 non-refundable permit application fee and a $150.00 annual renewal fee under § 5-44-5.
B.The city shall impose an assessment of $2.00 per paid occupied room night on short term rental properties in the city. This assessment shall be dedicated to destination marketing and to providing supplemental funding for marketing programs above and beyond that currently provided, pursuant to Ordinance 5595.C.The city levies a privilege tax upon the privilege of occupancy in a short term rental property of each transient. Such tax shall be in the amount of three and one-half percent of the consideration charged by the short term rental property owners... Each applicant for a short term rental permit under the provisions of this article shall pay to the division of public works, a non-refundable application fee of $300.00 at the time of the filing of the application to cover new applicant screening and on-site property inspection.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 32 | Charter: Supplement 4).
Full Breakdown
Chapter 5-44 sets a dedicated tax and fee structure for short term rental (STR) properties, separate from the hotel/motel occupancy tax in Chapter 5-20. Section 5-44-4(B) imposes 'an assessment of $2.00 per paid occupied room night on short term rental properties in the city,' dedicated to destination marketing under Ordinance 5595. Section 5-44-4(C) then levies 'a privilege tax upon the privilege of occupancy in a short term rental property of each transient...in the amount of three and one-half percent of the consideration charged by the short term rental property owners,' collected and enforced by the city pursuant to Ordinance 5619: a lower rate than the 4% hotel tax, reflecting the separate STR tax track.
Beyond the occupancy tax, operating an STR carries its own permit fees under Section 5-44-5. Applicants pay 'a non-refundable application fee of $300.00...to cover new applicant screening and on-site property inspection' (§ 5-44-5(D)), and permits expire 365 days after issuance and may be renewed 'upon the payment of a $150.00 fee to cover the applicant renewal screening and on-site inspection' (§ 5-44-5(H)), with renewal requests due at least 30 days before expiration. Any STR 'found to be operating without the required permit' is subject to double fees once it does obtain the permit, per Section 5-44-5(I). The division of public works administers collection and permitting citywide.
Violations & Fines
Operating an STR without the required permit triggers double fees once the permit is obtained, per Section 5-44-5(I). Under Section 5-44-4(A), whichever party is liable for collecting occupancy and sales tax, the hosting platform under a voluntary agreement, or the owner otherwise, must remit it to the city; failing to do so exposes the liable party to the city's tax enforcement and collection remedies.
Frequently Asked Questions
What taxes and fees does a Memphis short-term rental owner pay?
Is the short-term rental tax rate the same as the hotel tax?
What happens if I rent out my Memphis property without a permit?
Sources & Official References
Other rules in Memphis
How Memphis compares: Cities with the Highest Short-Term Rental Taxes·Compare Memphis to another location·View the Tennessee short-term rentals overview
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