Short-Term Rental Rules in Memphis, TN (2026): Permits, Taxes and Limits
Short-term renting is allowed in Memphis with specific requirements. Hosts must obtain a permit and comply with various operational rules and tax obligations [1].
Do you need a permit or license?
Yes, all short-term rental properties in Memphis must have a permit issued by the City of Memphis Division of Public Works [1]. Each property requires its own permit, and if a dwelling contains multiple properties, each must be permitted separately [1].
Taxes
Short-term rental owners or their hosting platforms are responsible for collecting and remitting occupancy taxes [1]. If a hosting platform has a voluntary collection agreement, it will handle tax remittance for the owner [1]. Otherwise, the property owner must ensure taxes are collected and remitted [1]. The city imposes an assessment of $2.00 per paid occupied room night, which funds local marketing programs [1]. A privilege tax of 3.5% is also levied on the transient occupancy charge [1]. Additionally, there's a separate room occupancy tax of 5% mandated by the county [3].
Limits and restrictions
The ordinance does not apply to properties in use before its effective date unless they have been sold, transferred, unused for 30 months, or in violation multiple times [1]. Short-term rentals are regulated by the specific ordinance and not by rooming house rules [1].
Penalties
The published rules do not state specific penalties; ask the city.
How to apply
Applications for permits can be submitted to the City of Memphis Division of Public Works. The published rules do not specify the exact documentation needed; ask the city for details.
At a glance
| Topic | What the rules say |
|---|---|
| Permit requirement | Each property must have its own permit [1]. |
| Tax collection | Handled by hosting platforms or the owner [1]. |
| Occupancy tax rate | 3.5% city tax plus a $2.00 room night assessment [1]. |
| County tax rate | Additional 5% tax mandated by Shelby County [3]. |
| Exemption conditions | Properties in use prior to the ordinance may be exempt [1]. |
FAQ
What is the penalty for operating without a permit?
The published rules do not state this; ask the city.
What documents are needed for a permit?
The published rules do not state this; ask the city.
Who should file the occupancy taxes?
Occupancy taxes can be filed by hosting platforms or the property owner if no voluntary collection agreement is in place [1].
Running a rental in Memphis
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- CHAPTER 5-44. - SHORT TERM RENTAL ORDINANCE | Code of Ordinances | Memphis, TN | Municode Library (official)
- Registration (official)
- Room Occupancy Taxes | Shelby County, TN - Official Website (official)
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.