Short-term rental & Airbnb taxes in Chattanooga, TN (2026)
Short-term rental guests in Chattanooga pay roughly 17.25% in combined occupancy and lodging taxes. Here's the itemized breakdown, who collects each one, and what you may need to remit yourself.
Itemized tax rates
| Tax | Rate | Who collects |
|---|---|---|
| Tennessee state sales taxApplies to rentals under 90 days on the full sales price including cleaning and other fees. The marketplace facilitator (Airbnb/Vrbo) collects and remits when booked through a platform; the owner or property management company collects on direct bookings. | 7% | varies |
| Local option sales tax (Hamilton County/Chattanooga)Hamilton County local option rate of 2.25% (in effect since July 1, 2004, per TN DOR boundary/rate file; same 2.25% rate applies inside Chattanooga city limits). Collected with the state sales tax by the platform for marketplace bookings, otherwise by the host/manager. | 2.25% | varies |
| Hamilton County hotel/motel occupancy privilege tax4% of consideration for stays under 90 days, levied under Private Acts of 1980, Ch. 905. Since January 1, 2021, short-term rental unit marketplaces must collect and remit local occupancy taxes (via TN DOR) for platform bookings; direct-booking hosts remit monthly to the Hamilton County Trustee by the 20th of the following month. | 4% | varies |
| City of Chattanooga hotel/motel occupancy tax4% of consideration for stays under 30 days, levied under T.C.A. 67-4-1401 et seq. and City Ordinance No. 11303. Marketplace bookings: platform collects and remits (state mandate since Jan 1, 2021); direct bookings: operator remits monthly to the Hamilton County Trustee (2% accounting fee deduction allowed if timely). | 4% | varies |
What will guests pay on a Chattanooga stay?
Enter a nightly rate to see the itemized occupancy-tax cost.
Chattanooga occupancy tax calculator
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)· collection varies | $31.50 |
| Local option sales tax (Hamilton County/Chattanooga) (2.25%)· collection varies | $10.13 |
| Hamilton County hotel/motel occupancy privilege tax (4%)· collection varies | $18.00 |
| City of Chattanooga hotel/motel occupancy tax (4%)· collection varies | $18.00 |
| Total tax (17.25%) | $77.63 |
| Guest pays | $527.63 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
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Verified July 21, 2026. Informational only — not legal, tax, or financial advice. Tax rates and collection rules change; confirm current requirements with Chattanooga and your booking platform.