Gatlinburg Short-Term Rental Regulations
| Permit | ✓ Required — Tourist Residency Permit ($200) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — 89 days or fewer per stay |
| Tax Rate | 12.75% |
| Max Penalty | Fines apply (amount varies) |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Tourist Residency Permit
| Fee | Amount |
|---|---|
| Initial cost | $200 |
| Renewal | $200 (2 or fewer bedrooms); $75 per additional bedroom over two / 1 year |
This permit type does not require primary residence.
Application Process
Submit application in person at Gatlinburg Customer Service Center (912 East Parkway) or mail to City Hall. Fire and building inspection required. Verify zoning with Building and Planning Department before applying.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Tennessee State Sales Tax | 7% | Tennessee Department of Revenue |
| Local Option Sales Tax (Sevier County) | 2.75% | Sevier County |
| Gatlinburg Hotel/Motel Tax | 3% | City of Gatlinburg |
Combined rate: 12.75% of gross rental income.
Collection: Airbnb auto-collects 9.75% state and local sales taxes. Hosts self-remit 3% city lodging tax. VRBO hosts must self-collect and remit all taxes.
Filing: Monthly, quarterly, or annual depending on assignment. Returns due 20th day of month following end of filing period. Zero-dollar returns required even with no rental activity. Register with Tennessee Dept. of Revenue; county lodging tax filed with Sevier County Trustee by 20th monthly.
Rental Limits
Gatlinburg does not impose an annual cap on the number of nights you can rent. Each individual stay must be 89 days or fewer per stay.
Occupancy & Density Limits
Listed on permit application; maximum number of occupants must be specified.
Zoning & Restrictions
STRs prohibited in R-1A and R-2A zones. Permitted in R-1, R-2, R-3 residential zones, commercial zones (C-1, C-2), tourist commercial zones, and mixed-use developments.
Insurance & Safety
Safety & Operating Requirements
- Annual fire and safety inspections required
- Smoke detectors on each level and in bedrooms
- Carbon monoxide detectors near fuel-burning appliances
- Fire extinguishers on each level
- Clear, unobstructed escape routes
- Emergency contact information posted prominently
- Visible address signage
Platform Requirements
- Airbnb collects 9.75% state and local sales taxes automatically
- Hosts must collect the 3% lodging tax separately. VRBO does not collect taxes automatically.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Gatlinburg:
- Meet safety requirements. Annual fire and safety inspections required. Smoke detectors on each level and in bedrooms. Carbon monoxide detectors near fuel-burning appliances. Fire extinguishers on each level. Clear, unobstructed escape routes. Emergency contact information posted prominently. Visible address signage.
- Apply for Tourist Residency Permit. Submit application + $200 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Collect and remit taxes. 12.75% on all bookings.
- Renew annually. $200 (2 or fewer bedrooms); $75 per additional bedroom over two renewal fee.