Tennessee Lodging Tax Calculator.

How Tennessee lodging tax works

Tennessee has one of the highest state sales tax rates in the country, and short-term rentals get a county occupancy tax on top:

1. 7% state sales tax — applies to the rental charge.
2. Local sales tax — counties add 1.5%–2.75% as the local-option sales tax.
3. County hotel/motel occupancy tax — separate from sales tax, typically 5%–6%.

Effective rates in the top markets:

• Nashville (Davidson County): 7% state + 2.25% local + 6% occupancy = roughly 15.25%
• Gatlinburg / Sevier County: 7% state + 2.75% local + 3% occupancy = roughly 12.75%
• Pigeon Forge / Sevier County: same as Gatlinburg = roughly 12.75%
• Memphis (Shelby County): 7% state + 2.25% local + 5% occupancy = roughly 14.25%
• Chattanooga (Hamilton County): 7% state + 2.25% local + 4% occupancy = roughly 13.25%

Platform collection

Airbnb and Vrbo collect and remit the 7% state sales tax + local-option sales tax as marketplace facilitators. For county hotel/motel occupancy tax, coverage is jurisdiction-specific:

• Davidson County / Nashville — platforms remit occupancy tax.
• Sevier County / Gatlinburg / Pigeon Forge — platforms typically do NOT remit county occupancy tax. The host must register and file directly.
• Shelby / Hamilton / Knox — coverage varies; verify current agreement.

This is the most common Tennessee filing mistake. Sevier County operators specifically often think Airbnb handles everything; they don’t.

What this means in practice

• For state + local-option sales tax — platforms handle it.
• For county occupancy tax in Sevier County — register with Sevier County, file monthly, remit the 3% yourself.
• For 30+ night stays — exempt from state sales tax under Tennessee law; some county occupancy taxes also exempt long stays. Verify locally.
• Nashville has additional Non-Owner-Occupied STR permitting rules that interact with tax registration. A lapsed permit can shut down the listing.

How to use the calculator above

1. Enter your booking subtotal (nightly × nights + cleaning fee, before tax).
2. Set the local add-on. Nashville ≈ 8.25% (2.25% local + 6% occupancy). Gatlinburg/Pigeon Forge ≈ 5.75%. Memphis ≈ 7.25%.
3. Read the effective rate, tax total, and what the guest sees.

Source: Tennessee Department of Revenue. Verified 2026-05-11. Not tax advice — confirm with a CPA or the county clerk before filing.