Short-Term Rental Rules in Gatlinburg, TN (2026): Permits, Taxes and Limits
Short-term rentals are allowed in Gatlinburg, TN, but hosts must obtain a Tourist Residency Permit and pass an annual inspection. Specific licenses and adherence to tax regulations are also required [3][4].
Do you need a permit or license?
Gatlinburg requires an annual Tourist Residency Permit for short-term rentals, which covers properties rented for less than 30 days [3][4]. The base permit cost is $200 for up to two bedrooms and $75 for each additional bedroom [3]. Rentals without a permit can incur fines up to $50 per violation [3]. A business license from both the City of Gatlinburg and Sevier County is also required, costing $15 each [3][4].
Taxes
Short-term rental income is subject to a Tennessee state sales tax of 7% and a local sales tax of 2.75% [2][3]. Additionally, the City of Gatlinburg imposes a 3% occupancy tax and a 1.25% gross receipts tax on operators [3]. These taxes are collected by either the property owner or a marketplace facilitator [1][2].
Limits and restrictions
There is no maximum occupancy cap unless the property exceeds 12 occupants, which affects fire safety classifications [3]. Short-term rentals are permitted in certain zoning districts, excluding R-1A and R-2A [3][4]. Off-street parking requirements depend on the number of bedrooms [3][4]. Noise restrictions are enforced between 11:00 p.m. and 7:00 a.m. [4].
Penalties
Operating without the necessary permits results in fines up to $50 per violation [3]. Trash must be stored in bear-proof containers, with violations incurring a $113.75 fine [4]. Noise ordinance violations can lead to citations [4].
How to apply
Applications for the Tourist Residency Permit are submitted to the Gatlinburg Customer Service Center. The process involves property safety inspections following application submission and fee payment [4].
At a glance
| Topic | What the rules say |
|---|---|
| Permit Required | Yes, for less than 30 days rentals [3]. |
| Annual Inspection | Required [3]. |
| Permit Fee | $200 for two bedrooms + $75 per additional bedroom [3]. |
| Business Licenses | City and County licenses, each $15 [4]. |
| State Sales Tax | 7% [2]. |
| Local Sales Tax | 2.75% [3]. |
| Occupancy Tax | 3% [3]. |
| Gross Receipts Tax | 1.25% [3]. |
| Zoning Restrictions | Prohibited in R-1A and R-2A districts [3]. |
| Parking Requirements | Off-street parking based on bedrooms [3][4]. |
| Noise Ordinance | Quiet hours 11:00 p.m. to 7:00 a.m. [4]. |
FAQ
Is there a limit to how many short-term rental permits are issued?
The published rules do not state this; ask the city.
Are bear-proof trash containers mandatory for all properties?
Yes, within specific zones, and violations result in a $113.75 fine [4].
Do short-term rentals need to follow occupancy limits?
No fixed maximum occupancy cap, but more than 12 occupants changes fire safety classification [3].
Running a rental in Gatlinburg
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- Local Occupancy Tax (official)
- SUT-47 - Short-Term Rentals Are Subject to Sales Tax – Tennessee Department of Revenue (official)
- Gatlinburg, TN Short-Term Rental Rules (2026) | RuleGrid
- Gatlinburg Short-Term Rental Laws: Permits and Taxes - LegalClarity
Last checked: October 15, 2026. This page summarizes rules the city, county or state has published. It is not legal advice, and rules change: confirm with the city before you list a property.