What are the short-term rental rules and taxes in Nashville, TN?

Nashville hosts deal with a Metro permit that depends on whether you live at the property, a zoning map that decides whether a non-owner-occupied permit is possible at all, and three layers of tax. Everything below comes from Metro Nashville Codes, Metro Finance, the Tennessee Department of Revenue, and Airbnb's and Vrbo's own tax pages, linked where it's used.

Checked on Nov 4, 2026.

Do you need a permit or registration

Yes. Metro's short-term rental page (opens in a new tab) says anyone renting through an STR website must get a permit from the Metro Codes Department before listing. Stays must be at least 24 hours, and no guest may stay more than 30 consecutive days. A new online application process started March 11, 2026.

Permit types

Metro's permit types page (opens in a new tab) splits permits in two.

Owner-occupied details from that page:

• You prove residence with four documents, and the address must match your recorded deed.
• If you rent only part of the home, it must include at least one sleeping room and a bathroom.
• In a two-family property, both units must have the same owner and one must be the owner's primary residence.

Not owner-occupied details:

• New permits are allowed (with conditions) in MUN, MUL, MUG, MUI (and their -A versions), OG, OR20 through OR40-A, ORI, CN, CL, CS, CA, CF, the DTC districts, SCN, SCC and SCR.
• New permits are not issued in AR2a, R, RS and RM zones. Existing permit holders there can renew, but the permit does not carry over if the property is sold or transferred.
• In a Specific Plan (SP) or Planned Unit Development (PUD), a permit is issued only if the SP or PUD allows it. Ask Metro Planning at 615-862-7190.

Check your parcel with Metro's property search (opens in a new tab) before you buy or apply.

Fees and paperwork

Metro's STR FAQ (opens in a new tab) says:

• The permit fee is $313, due when the application is approved, and renewal costs $313 too. Credit cards carry a 2.3% processing fee.
• Permits last 12 months and renew yearly. They can't be transferred.
• You must notify adjacent property owners, in person with a signature or by mailed letter.
• Renewal needs proof of current property insurance and proof that you paid hotel occupancy tax.
• Operating without a permit can bring citations and a mandatory one-year wait before you can apply.
• HOA rules can be stricter than Metro's.

The apply page (opens in a new tab) says to have every document ready before you start, because the form can't be saved, and not to submit a second application. Metro also warns about scammers posing as zoning agencies and asking for fees. Questions go to Codes at 615-862-6500.

Occupancy and sales taxes

Combined percentage, using these official rates: 7% + 2.75% + 7% = 16.75%, plus $2.50 per rented room per night.

A note on the occupancy rate: Metro Finance's June 2023 notice says the local occupancy tax went from 6% to 7% on July 1, 2023 and the $2.50 nightly fee stayed the same. Metro's downloadable hotel occupancy tax return (opens in a new tab) has no date and still calculates tax at 6%. Ask Metro Finance Collections (615-862-6151) which rate and form apply to your STR account before you file.

What's taxed: the Department of Revenue's short-term rental guide (opens in a new tab) (revised May 2023) says rentals under 90 continuous days are subject to sales tax.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's Tennessee tax article (opens in a new tab) says it collects 7% state sales tax and 1.5% to 2.75% local sales tax on the listing price including cleaning and guest fees, for stays of 89 nights or fewer. It also says it collects all locally imposed occupancy taxes on the first 30 days of a stay. The article does not name Nashville, its rate, or the $2.50 nightly fee.

Vrbo. Vrbo's N to Z tax list (opens in a new tab) shows Tennessee state and local sales tax on stays under 90 nights (since Oct 1, 2020) and a local lodging tax line starting Jan 1, 2021. It doesn't name Nashville or give rates.

Tennessee's position. The Department of Revenue's local occupancy tax overview (opens in a new tab) says the state collects local occupancy tax from short-term rental marketplaces at the local rate. Its STR guide says hosts aren't responsible for sales tax or local occupancy tax on bookings a marketplace collects, but should keep records showing the booking came through the platform.

What stays your job:

• All three taxes and the $2.50 fee on direct bookings and any channel that doesn't collect.
• Proof of occupancy tax payment at permit renewal. Metro's FAQ says a third party can remit for you if the remittance clearly shows the owner and address, so keep your platform statements.
• Whether Metro still expects a monthly return from you for platform-only months is not stated on the pages read. Ask Metro Finance Collections.

Filing and registering for the taxes you must file yourself

Metro hotel occupancy tax (from Metro's STR occupancy tax page (opens in a new tab) and the return form):

1. Apply for an Occupancy Privilege Tax Account Number through the link on that page.
2. File monthly. Returns are due by the 20th of the month after the month you report.
3. Filing and paying on time lets you keep 2% as operator compensation.
4. Late returns owe interest at 8% a year and a penalty of 1% a month.
5. Questions go to Metro Finance at 615-862-6151.

Tennessee sales tax. The DOR's STR guide says hosts who rent directly still handle sales tax themselves, so register for a sales tax account before taking direct bookings. The due dates page (opens in a new tab) says monthly returns are due on the 20th of the following month. The same guide says hosts with $100,000 or more in yearly gross sales must also register for business tax with their city and county.

This is not tax advice. A Tennessee CPA can confirm how platform-remitted bookings show on your returns.

Other local rules

From Metro's operation rules page (opens in a new tab):

• Occupancy. Twice the number of permitted sleeping rooms plus four, with a maximum of 12. A 3-bedroom home allows 10. The main renter must be at least 21.
• One party at a time. No renting to separate parties under separate contracts at the same time.
• Local contact. A responsible party must answer calls 24 hours a day for every stay, and their name and phone number must be posted inside the unit.
• Vehicles. No RVs, buses or trailers visible on the street or property in connection with the rental.
• Safety. The unit must meet state and local building and fire codes. The page doesn't list smoke alarm, CO alarm or extinguisher counts. Our alarm count guide uses federal guidance.
• Noise and trash. Guests must follow Metro's noise and waste rules. The page gives no hours or decibel limits.
• Food. You may not prepare or serve food to guests.
• Signs. Signs must follow Metro Code Title 17, Chapter 32.
• Revocation. Three violations of any ordinance or law can lead to revocation, as can false information on the application. A change in ownership cancels the permit.

Our house rules template and noise complaint message help you pass these on to guests.

Where to check for changes

• Metro Codes STR program (opens in a new tab)
• Metro permit types and zoning (opens in a new tab)
• Metro STR occupancy tax (opens in a new tab)
• TN DOR short-term rental guide (opens in a new tab)
• Airbnb Tennessee taxes (opens in a new tab)

For other cities, see short-term rental rules by city, and for more on running rentals, the already hosting hub. To see what a booking leaves after platform fees and taxes, use the Airbnb fee calculator.