Tennessee Statewide Rule
Tennessee Short-Term Rental Sales and Occupancy Tax Rules
Key Facts
- State Sales Tax
- 7%
- Local Sales Tax
- Up to 2.75%
- Marketplace Collection
- Required by law
- Statute
- TCA 67-6-202
Summary
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.
(a) A short-term rental unit marketplace shall register with the department for the collection and remittance of all the following taxes with respect to the consideration charged for the occupancy of a short-term rental unit: (1) The privilege tax imposed pursuant to title 7, chapter 4, part 1; (2) The privilege tax imposed pursuant to title 7, chapter 4, part 2; (3) The privilege tax imposed pursuant to title 67, chapter 4, part 14; and (4) Any privilege tax on the occupancy of a room provided by any hotel, motel, or similar establishment to a transient for a consideration, where the tax is imposed pursuant to a private act.
Full Breakdown
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.
Violations & Penalties
Failing to collect or remit sales tax can result in assessments, penalties up to 25%, and interest under TCA 67-1-801.
Frequently Asked Questions
Does Airbnb collect Tennessee taxes for me?
Do I owe taxes if I rent directly?
Sources
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