Tennessee Taxes & Fees (2026)

Key Facts

State Sales Tax: 7%
Local Sales Tax: Up to 2.75%
Marketplace Collection: Required by law
Statute: TCA 67-6-202

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?

Yes. Under marketplace facilitator law, Airbnb and similar platforms must collect and remit state sales tax and most local occupancy taxes on bookings made through their platforms.

Do I owe taxes if I rent directly?

Yes. Direct bookings outside platforms require you to register with the Tennessee Department of Revenue and collect the full state and local tax yourself.

Tennessee Short-Term Rental Sales and Occupancy Tax Rules

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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