Owner guide

Nashville short-term rental permits, rules, and taxes

This page restates official Metropolitan Government of Nashville and Davidson County and Tennessee Department of Revenue guidance, with a citation on every factual claim. It is not legal, tax, or zoning advice. Confirm current requirements with Metro Codes and the Department of Revenue before applying, listing, or collecting tax. Compiled 2026-08-28.

Owners: see what our management covers on our services page, or contact the Nashville team.

Permit required before listing

Metro Codes publishes two Short Term Rental Property (STRP) permit types: owner-occupied and not owner-occupied.[1]Metro’s application page states that a new online STRP permit application process became effective March 11, 2026, and that applicants should follow the posted steps in order and not submit the application more than once.[2]Both official checklists state that until a permit is received, the property is not authorized to be listed for rent on a website.[3][4]

Owner-occupied vs not owner-occupied

An owner-occupied STRP is an owner-occupied residence, or a unit on a lot with an owner-occupied residence. Metro says it covers rental of up to four sleeping rooms to a single party of individuals, or, if only part of the unit, at least one sleeping room and a bathroom, limited to a single party of individuals.[1]

To qualify for an owner-occupied permit, Metro requires the owner to permanently reside at the property and to be a natural person or persons. LLCs, corporations, trusts, partnerships, joint ventures, and other entities are ineligible for owner-occupied permits. Four documents giving proof of owner-occupation are required, and that documentation of primary residence address must match the deed as recorded with the Register of Deeds. Only one permit is issued per lot in single-family and two-family zoning districts.[1]

A not owner-occupied STRP is a residential dwelling unit that is not owner-occupied, containing not more than four sleeping rooms, used and/or advertised through an online marketplace for rent for transient occupancy by guests. Rentals are limited to a single party of individuals. Ownership information on the application must match the deed as recorded with the Davidson County Clerk’s office.[1]

Where new permits are issued

Metro states that new not owner-occupied permits will only be issued as a use permitted with conditions (PC) in MUN and MUN-A, MUL and MUL-A, MUG and MUG-A, MUI and MUI-A, OG, OR20 through OR40-A, ORI and ORI-A, CN and CN-A, CL and CL-A, CS and CS-A, CA, CF, DTC North, DTC South, DTC-West, DTC Central, SCN, SCC, and SCR zoning districts.[1]

Metro also states that new not owner-occupied permits are not permitted in AR2A, R, RS, or RM zoned properties. Existing permit holders in those districts may be eligible to apply for renewals, but those permits are not transferable if the property is sold or transferred. Permits for Specific Plan (SP) or Planned Unit Development (PUD) properties are issued only if allowed by the SP or PUD.[1]

Operating rules Metro publishes

Metro’s operation-rules page lists requirements that include, but are not limited to:

• No food prepared for or served to the transient by the permit holder or manager.
• The principal renter of a unit shall be at least 21 years of age.
• Maximum occupants on a property at any one time shall not exceed twice the number of permitted sleeping rooms plus four, with a maximum of 12.
• Simultaneous rental to more than one party under separate contracts is not allowed.
• The owner shall not receive compensation or remuneration to allow occupancy for a period of less than 24 hours.
• The permit holder is responsible for collecting and remitting all applicable room, occupancy, and sales taxes required by state law or the Metropolitan Code.
• A local responsible party’s name and telephone number must be posted in the unit; that party must answer calls 24 hours a day, seven days a week during each rental period.
• A permit shall not be transferred or assigned to another individual, person, entity, or address.
• A permit expires 365 days after it is issued unless renewed before expiration.

Source for the list above: Metro operation rules.[5]

Metro’s operation-rules page also says changes in the ownership of a property will result in the cancellation of a permit.[5]Metro’s Not Owner Occupied Non-Conveyance Summary, linked from that page, is the more specific source for how that applies to not owner-occupied permits issued on or after May 17, 2018. A $0 quitclaim of the property from the original natural-person permit holder to an LLC of which they are a member does not transfer the permit to the LLC; the original owner remains the permit holder and operator. If that original permit holder later ceases to be associated with the LLC, Metro says the permit is immediately cancelled. If the NOO permit was issued to an LLC that already owned the permitted property, membership of the LLC can change without affecting the permit; Metro states it does not regulate LLC membership.[6]

Application materials Metro lists

Official checklists require proof of payment of all taxes due, including property taxes, and for renewals all applicable room, occupancy, and sales taxes; a floor plan of the entire dwelling on letter-sized paper identifying rooms, walls, doors, windows, and smoke detectors on each floor; for single- and two-family dwellings, floor-plan certification by a state-licensed architect, engineer, or home inspector; proof of homeowner’s fire, hazard, and liability insurance with liability coverage of not less than one million dollars per occurrence; and a notarized affidavit.[3][4]

The not owner-occupied checklist also requires chain-of-ownership documents when the owner is a trust, LLC, or similar; proof of notification to adjacent property owners; an HOA / use restriction statement even if there is no HOA; and a responsible party who resides within a 25-mile radius of the property.[4]

Both checklists state a $313.00 permit fee is due after the application is approved, with online payment instructions emailed and a 2.3% processing fee applied to credit-card payments. Confirm the current fee with Metro Codes; Metro also states the online application process changed on March 11, 2026.[3][4][2]

Tennessee sales tax

The Tennessee Department of Revenue states that the short-term rental (less than 90 consecutive days for sales tax purposes) of vacation lodging, including a person’s home, is subject to sales tax. The property owner, property management company if one is used, or marketplace facilitator must collect and remit sales tax on the sales price of the rental. The sales price includes all fees collected for the rental and any other money a consumer must pay in order to rent the accommodations, including non-refundable pet deposits, required cleaning fees, and property damage protection fees. The owner or management company must register in the jurisdiction in which the property is located.[9][10]

Revenue’s SUT-48 states that if a marketplace facilitator is required to collect Tennessee sales tax, the host is not responsible for paying the sales tax collected on bookings made through that platform and does not report those taxes or sales on the host’s sales tax return. The host must still keep records that the platform reported and paid the tax. Direct bookings and other taxable items sold to guests remain the host’s responsibility to collect and remit.[11]

Local occupancy tax

Metro Finance defines an STRP, for occupancy-tax purposes, as a residential dwelling unit containing not more than four sleeping rooms that is used and/or advertised for rent for transient occupancy by guests as defined in Metropolitan Code Section 5.12.010. Units rented to the same occupant for more than 30 continuous days, bed and breakfast establishments, boarding houses, hotels, and motels are not considered STRP on that page. Occupancy means use or possession of a room, lodgings, or accommodations in a hotel for a period of less than thirty continuous days.[7]

Metro says hotel returns are due to the Collections Office by the 20th of each month, and that the law provides two exemption classes: a tenant who has occupied room space for thirty or more continuous days is not required to pay the tax after the thirtieth day, and local, state, or federal governmental agencies when fees are paid by those agencies.[7]

A June 14, 2023 Metro Finance news item said that effective July 1, 2023 the local occupancy tax levy would be 7% and the nightly fee would stay $2.50, citing BL2022-1529, Metropolitan Code 5.12.150, and Tenn. Code Ann. § 67-4-1415. That same item noted a possible expiration of the additional 1 percent if certain Sports Authority revenue bonds were not issued by January 1, 2024. Confirm the current combined Metro occupancy rate and nightly fee with Metro Collections before collecting tax; this page does not treat the 2023 rate as independently verified for 2026.[8]

For state occupancy-tax administration, Revenue’s SUT-48 says many cities and counties impose local occupancy taxes that must be remitted to local governments directly, except that beginning January 2021 short-term rental unit marketplaces must collect occupancy taxes based on property location and remit those collections to the Department of Revenue. The property owner remits occupancy taxes to local governments for rentals not handled by those marketplaces.[11]

Revenue’s LOT-11 states that property management companies meet the definition of “vacation lodging service,” are not short-term rental unit marketplaces, and are therefore not required to collect and remit local occupancy tax to the Department. That article says the amendment does not change sales and use tax or business tax.[12]

Public Chapter 364 (2025), effective July 1, 2025, subjects the first 30 days of occupancy in a short-term rental unit to the local occupancy tax, regardless of the overall length of stay, according to the Department of Revenue’s May 7, 2025 notice and Important Notice 25-07. Confirm how that interacts with Metro’s local STRP occupancy definitions with Metro Collections and the Department of Revenue.[13][14]

Business tax (state)

SUT-48 states that if total taxable gross receipts in a jurisdiction (including rental receipts on all accommodations in that jurisdiction, regardless of who collects the receipts) are $100,000 or more, the owner must register for and pay business tax to the Department and obtain a business license from the county and, if applicable, city. If gross receipts in a jurisdiction are between $3,000 and $100,000, a minimal activity license is required from the local county and, if applicable, city. Business licensing and business tax are not done through a marketplace facilitator.[11]

What this page does not claim

• Grand Welcome Nashville’s management fee. This regulation page does not restate it. A 2023 blog post on this site, Vacation Rental Management: Behind the Cost, publishes fee figures; those numbers are not repeated here.[15]
• A current combined Metro occupancy percentage for 2026, beyond quoting the June 14, 2023 announcement and telling owners to confirm with Collections.[8]
• Neighborhood-level zoning for a specific address. Metro publishes permit-type zoning lists and an application page; this page does not look up a parcel.[1][2]

Talk with the Nashville team about a permitted property →

Sources

Government sources are Metro Nashville or Tennessee Department of Revenue pages. The last entry is a Grand Welcome Nashville blog post, cited only for what this site already publishes about management fees. Accessed 2026-08-28.

1. Metro Nashville Codes — Short Term Rental Property Permit Types — Last updated March 13, 2026.
2. Metro Nashville Codes — Apply for Short Term Rental Property Permit — Last updated March 20, 2026.
3. Metro Nashville Codes — Owner Occupied Short Term Rental Permit Application Checklist — Last updated October 31, 2025.
4. Metro Nashville Codes — Not-Owner Occupied Short Term Rental Permit Application Checklist — Last updated November 1, 2024.
5. Metro Nashville Codes — Short Term Rental Property Operation Rules and Requirements — Last updated March 13, 2026.
6. Metro Nashville Codes — Not Owner Occupied Non-Conveyance Summary (PDF) — Posted December 2023; linked from the operation-rules page.
7. Metro Nashville Finance — Pay Short Term Rental Property Occupancy Tax — Last updated January 5, 2026.
8. Metro Nashville Finance — Increase of Hotel Occupancy Tax (news) — Published June 14, 2023.
9. Tennessee Department of Revenue — SUT-47 Short-Term Rentals Are Subject to Sales Tax — Published March 27, 2025.
10. Tennessee Department of Revenue — Important Notice 17-24 — Sales tax notice (PDF on tn.gov).
11. Tennessee Department of Revenue — SUT-48 Short-Term Rentals Reporting Requirements — Published March 27, 2025 (notes a May 12, 2023 law-change update).
12. Tennessee Department of Revenue — LOT-11 Property Management Companies — Published January 14, 2026.
13. Tennessee Department of Revenue — Important Notice: Short-Term Rental Unit 30-Day Occupancy — Published May 7, 2025.
14. Tennessee Department of Revenue — Important Notice 25-07 (PDF) — Linked from the May 7, 2025 notice.
15. Grand Welcome Nashville — Vacation Rental Management: Behind the Cost — Published September 21, 2023.