Gatlinburg vs Palm Springs: Short-Term Rental Rules Compared (2026)
Gatlinburg is currently "allowed with permit" while Palm Springs is "restricted". On cost, Gatlinburg is the cheaper market to license ($200 vs $1,046). Full verified details for both markets below — always confirm current requirements with each jurisdiction.
Side by side
| Rule | Gatlinburg, TN | Palm Springs, CA |
|---|---|---|
| Legal status | Allowed with permit | Restricted |
| Permit required | Yes | Yes |
| Permit name | Tourist Residency Permit | Vacation Rental Registration Certificate |
| Permit fee | $200 | $1,046 |
| Renewal | Annual | Annual |
| Primary residence only | No | No |
| Owner occupancy required | No | No |
| Night cap / year | None found | None found |
| Minimum stay | None found | None found |
| Total occupancy taxes | ~14% | ~12.5% |
| Last verified | July 10, 2026 | July 10, 2026 |
Compare guest tax loads
Switch between the two markets to see itemized occupancy taxes on the same stay.
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)· collection varies | $31.50 |
| Sevier County local option sales tax (2.75%)· collection varies | $12.38 |
| City of Gatlinburg hotel/motel occupancy privilege tax (3%)· collection varies | $13.50 |
| City of Gatlinburg gross receipts privilege tax (1.25%)· host remits | $5.63 |
| Total tax (14%) | $63.00 |
| Guest pays | $513.00 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Gatlinburg, TN
Short-term rentals (called 'tourist residences') are legal and common in Gatlinburg, but every unit rented for less than 30 days must hold an annual city Tourist Residency Permit ($200 base covering two bedrooms, plus $75 per additional bedroom) and pass an annual fire/building inspection. There is no owner-occupancy rule, unit cap, or night cap; the single biggest restriction is zoning — tourist residences are prohibited in the R-1A and R-2A residential districts, while allowed in R-1, R-2, R-3 and the commercial districts. Guests pay 12.75% in lodging taxes (7% state sales + 2.75% county sales + 3% city occupancy tax), and operators also owe the city's 1.25% gross receipts privilege tax. Always confirm current requirements with the city before operating.
Full Gatlinburgrules, playbook & sources →Palm Springs, CA
Short-term rentals (stays of 28 nights or less) are legal in Palm Springs only with a city Vacation Rental Registration Certificate ($1,046 per year as of December 1, 2025, plus a one-time $25 TOT permit), and each owner may hold just one certificate. The biggest restrictions are the annual contract caps — 26 rental contracts per calendar year for post-October 17, 2022 permittees (grandfathered 'existing permittees' keep 32 plus 4 third-quarter contracts after Ordinance 2118 cancelled a planned 2026 reduction) — and a 20% per-neighborhood certificate cap under which new applications are refused in neighborhoods at or above the limit. Rentals are limited to single-family dwellings (prohibited in apartments), and hosts remit 11.5% city TOT plus a 1% TBID monthly. Always confirm current requirements with the city before operating.
Full Palm Springsrules, playbook & sources →Informational only — not legal, tax, or financial advice. Rules change frequently in both markets; verify current requirements with each jurisdiction before operating.