Do you need a permit to run an Airbnb in Gatlinburg?

Yes. Gatlinburg requires Tourist Residency Permit, and the fee is $200. 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.

How much does a short-term rental permit cost in Gatlinburg?

The Tourist Residency Permit fee in Gatlinburg is $200, renewed annual. $200 base fee covers the residence and up to two bedrooms; each bedroom over two is an additional $75 per bedroom (e.g., a 5-bedroom cabin = $200 + 3 x $75 = $425). Fee is paid to the City of Gatlinburg with the application. Secondary sources and the city's application page also indicate operators must obtain standard Tennessee business licenses from the city and Sevier County (about $15 each) and register with the TN Department of Revenue; the business-license fees could not be verified on an accessible official page. Sprinkler system required for units over 3 stories, over 5,000 gross sq ft, or over 12 occupants.

How to get a short-term rental permit in Gatlinburg, TN (2026)

Gatlinburg requires Tourist Residency Permit — the fee is $200, renewed annual. Here's how to get and keep it.

Permit at a glance

Permit required	Yes
Permit name	Tourist Residency Permit
Permit fee	$200
Renewal	Annual

Step by step

1
Confirm your property is eligible
Confirm the property's zoning allows short-term rentals. Tourist residences are permitted in R-1 (Low Density Residential) with an annual permit, parking (minimum 2 on-site spaces, 1 for single-bedroom units), and administrative site-plan approval; by incorporation they are also permitted in R-2 and R-3 residential districts and in C-1 (Tourist Commercial) and C-2 (General Business) districts. They are expressly excluded from R-1A (Low Density Residential) and R-2A (Medium Density Residential) districts. Zoning verification of the parcel is part of the permit application.
2
Apply for the Tourist Residency Permit
Submit the Tourist Residency Permit application to Gatlinburg and pay the $200 fee. $200 base fee covers the residence and up to two bedrooms; each bedroom over two is an additional $75 per bedroom (e.g., a 5-bedroom cabin = $200 + 3 x $75 = $425). Fee is paid to the City of Gatlinburg with the application. Secondary sources and the city's application page also indicate operators must obtain standard Tennessee business licenses from the city and Sevier County (about $15 each) and register with the TN Department of Revenue; the business-license fees could not be verified on an accessible official page. Sprinkler system required for units over 3 stories, over 5,000 gross sq ft, or over 12 occupants.
3
Register for occupancy taxes
Register to collect and remit the applicable lodging/occupancy taxes for Gatlinburg. Some are collected automatically by the booking platform and some you may need to remit yourself.
4
Renew on schedule
The permit renews annual — set a reminder so it never lapses, since operating on an expired permit typically triggers fines.

STR rules change without warning.

Get an email the moment Gatlinburg changes its short-term rental rules — plus renewal reminders before your permit expires.

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Verified July 10, 2026. Informational only — not legal, tax, or financial advice. Permit requirements and fees change; confirm current requirements with Gatlinburg before applying.

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