Shelby County, TN Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- County occupancy tax
- 5% on hotel/motel/B&B lodging
- Tax authority
- Ch. 131, Private Acts of 1969
- Collected by
- Shelby County Clerk
- Permit fees
- $100 original, $50 renewal
- State/local sales tax
- Applies to stays under 30 days
Summary
Shelby County levies a 5% hotel/motel room occupancy tax on transient lodging, collected by the County Clerk under Chapter 131 of the Private Acts of 1969. STR permit fees are $100 original and $50 renewal, and Tennessee also requires state and local sales tax on stays under 30 days.
the county clerk is authorized to levy a privilege tax upon the occupancy in any hotel, motel, or bed and breakfast for each transient. The amount of the tax is 5% of the consideration charged by the operator.
Official source re-checked September 8, 2026: the cited page had not changed since it was quoted.
Full Breakdown
The main county charge on short-term lodging is the Shelby County room occupancy tax. Under Chapter 131 of the Private Acts of 1969 (as amended), the County Clerk levies a privilege tax on occupancy in any hotel, motel, or bed and breakfast for each transient, at 5% of the consideration charged by the operator. The county STR permit application requires the owner to certify compliance with Room Occupancy Tax requirements. Tennessee also imposes state and local sales tax on lodging rented fewer than 30 continuous days; since January 1, 2021, STR marketplaces such as Airbnb and Vrbo remit occupancy tax to the state unless they hold a local agreement. County STR permit fees are $100.00 original, $50.00 renewal.
Violations & Fines
Failing to remit the county room occupancy tax, or the state and local sales tax on stays under 30 days, exposes the operator to back taxes, penalties, and interest. Non-compliance and delinquent property taxes are grounds to revoke the permit.
Frequently Asked Questions
What is Shelby County's hotel/motel occupancy tax rate?
Does the tax apply to Airbnb and Vrbo stays?
Sources & Official References
Other rules in Shelby County
How Shelby County compares: Cities with the Highest Short-Term Rental Taxes·Compare Shelby County to another location·View the Tennessee short-term rentals overview
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