Operating a short-term rental in Gatlinburg requires a city-issued Tourist Residency Unit Permit, in addition to city and county business licenses. The process includes a mandatory fire inspection prior to application and adherence to strict occupancy limits. Hosts are responsible for collecting and remitting a total of 14.75% in taxes, including a 2% city tax that is not handled by booking platforms.
To host an Airbnb in Gatlinburg, you must get a 'Tourist Residency Unit Permit' from the city. Before you can even apply, you need to get business licenses from both the city and Sevier County, and your property must pass a fire department inspection. Be aware that you are responsible for collecting and paying a 2% city lodging tax yourself every month, as platforms like Airbnb won't do it for you. Finally, you must display your permit number on your online listing and follow the strict guest limit of 2 people per bedroom plus 4 extra guests.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
14.8%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$125
Processing Time
2-4 weeks
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