Short-Term Rental Laws in Knoxville, TN (2026)
Knoxville requires a Short-Term Rental Unit Operating Permit before advertising or operating any rental of under 30 days. In residentially zoned districts, STRs are allowed only at the owner's principal residence (Type 1 Permit, $70, natural persons only); in non-residential districts that allow residential use, non-owner-occupied STRs are allowed via a Type 2 Permit ($120, max 2 per person or entity citywide). Permits renew annually for $50, there is no night cap, and lodging is taxed at a combined 18.25% (9.25% sales tax + 4% city occupancy tax + 5% county occupancy tax), largely platform-collected.
Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data
Knoxville STR rules at a glance
| Legal status | Restricted |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental Unit Permit (Type 1 or Type 2 Operating Permit) |
| Permit fee | $70 |
| Renewal | Annual |
| Primary residence only | No |
| Max units per owner | 2 |
| Total occupancy taxes | ~18.25% of gross revenue |
| Insurance | None. The City does not require documentation of insurance to obtain a permit, but officially cautions that homeowners' and rental insurance policies may not cover short-term rental activity. Operators must instead certify life-safety compliance (smoke alarms, CO alarms, fire extinguisher). |
| Enforcement | The City uses enforcement/monitoring software to detect unpermitted operations and runs a dedicated STR complaint hotline, (865) 337-8275. Permits must be obtained before advertising; the Fire Marshal and other officials reserve the right to inspect for life-safety issues. Persistent complaints may result in permit revocation, and permits are non-transferable (Type 1 permits terminate on property transfer). |
| Current rules effective | 2018-01-01 |
What will guests pay in taxes on a Knoxville stay?
Itemized occupancy taxes for Knoxville, TN — enter your nightly rate to see the real cost breakdown.
Knoxville occupancy tax calculator
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)· collection varies | $31.50 |
| Knox County local option sales tax (2.25%)· collection varies | $10.13 |
| City of Knoxville Hotel Occupancy Privilege Tax (4%)· collection varies | $18.00 |
| Knox County Hotel/Motel Occupancy Tax (5%)· collection varies | $22.50 |
| Total tax (18.25%) | $82.13 |
| Guest pays | $532.13 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Knoxville requires Short-Term Rental Unit Permit (Type 1 or Type 2 Operating Permit) to operate a short-term rental — the fee is $70, renewed annual.
$70 for a Type 1 Operating Permit (owner-occupied, residential district — the standard case) and $120 for a Type 2 Operating Permit (non-owner-occupied, non-residential district). Annual renewal is $50 for both types. City and County business licenses are also required at $15 each.
Zoning & location rules
Zoning determines permit eligibility. In residentially zoned districts, STRs are allowed only at the owner's principal residence (Type 1 Permit; owner must be a natural person and prove residency with 2 documents). In non-residential districts where residential use is allowed, owners or tenants (with owner permission) may operate non-owner-occupied STRs under a Type 2 Permit; entities may hold at most two Type 2 permits citywide. STRs are prohibited in districts where residential uses are not allowed by the Zoning Code. Type 1 applicants must notify abutting/across-street property owners and the area neighborhood group.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Tennessee state sales taxPlatforms (Airbnb, Vrbo, etc.) collect and remit sales tax on marketplace bookings; hosts booking directly must register and remit themselves (business license required). | 7% | varies |
| Knox County local option sales taxLocal option sales tax; combined state+local sales tax is 9.25%. A November 2025 city referendum to raise it to 2.75% was rejected by voters. Platform-collected on marketplace bookings. | 2.25% | varies |
| City of Knoxville Hotel Occupancy Privilege TaxRaised from 3% to 4% effective January 1, 2025. Since January 1, 2021, short-term rental marketplaces must remit local occupancy taxes to the TN Dept. of Revenue; direct-booking hosts file and remit to the City themselves (filing required even with zero rentals). | 4% | varies |
| Knox County Hotel/Motel Occupancy TaxCounty occupancy tax applies inside Knoxville city limits in addition to the city tax (per official TN TACIR combined-rate table). Platform-collected for marketplace bookings under the 2021 state marketplace law; direct-booking hosts remit to the Knox County Clerk monthly. | 5% | varies |
Enforcement & penalties
The City uses enforcement/monitoring software to detect unpermitted operations and runs a dedicated STR complaint hotline, (865) 337-8275. Permits must be obtained before advertising; the Fire Marshal and other officials reserve the right to inspect for life-safety issues. Persistent complaints may result in permit revocation, and permits are non-transferable (Type 1 permits terminate on property transfer).
Operating or advertising an STR without a permit carries a civil citation of $50 per day; unpermitted units are deemed a public safety hazard and violations are declared a public nuisance, with further legal action possible.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Knoxville: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Verify your zoning
Location rules apply: Zoning determines permit eligibility. In residentially zoned districts, STRs are allowed only at the owner's principal residence (Type 1 Permit; owner must be a natural person and prove residency with 2 documents). In non-residential districts where residential use is allowed, owners or tenants (with owner permission) may operate non-owner-occupied STRs under a Type 2 Permit; entities may hold at most two Type 2 permits citywide. STRs are prohibited in districts where residential uses are not allowed by the Zoning Code. Type 1 applicants must notify abutting/across-street property owners and the area neighborhood group. Confirm your parcel's zoning with the city before applying.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the Short-Term Rental Unit Permit (Type 1 or Type 2 Operating Permit)
Budget $70 (annual renewal). $70 for a Type 1 Operating Permit (owner-occupied, residential district — the standard case) and $120 for a Type 2 Operating Permit (non-owner-occupied, non-residential district). Annual renewal is $50 for both types. City and County business licenses are also required at $15 each. Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
None. The City does not require documentation of insurance to obtain a permit, but officially cautions that homeowners' and rental insurance policies may not cover short-term rental activity. Operators must instead certify life-safety compliance (smoke alarms, CO alarms, fire extinguisher).
- 5
Set up tax collection & remittance
Platforms don't collect everything here: Tennessee state sales tax (7%), Knox County local option sales tax (2.25%), City of Knoxville Hotel Occupancy Privilege Tax (4%), Knox County Hotel/Motel Occupancy Tax (5%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 6
Configure your listing to the operating limits
Set your calendar and listing rules to respect the 2-unit-per-owner limit — platform delisting and fines in this market typically start with listings that visibly violate these limits.
- 7
Calendar the renewal before you forget it
This permit renews annual (budget $70 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 8
Know the cost of getting it wrong
Operating or advertising an STR without a permit carries a civil citation of $50 per day; unpermitted units are deemed a public safety hazard and violations are declared a public nuisance, with further legal action possible. The City uses enforcement/monitoring software to detect unpermitted operations and runs a dedicated STR complaint hotline, (865) 337-8275. Permits must be obtained before advertising; the Fire Marshal and other officials reserve the right to inspect for life-safety issues. Persistent complaints may result in permit revocation, and permits are non-transferable (Type 1 permits terminate on property transfer).
Recent rule changes in Knoxville
November 4, 2025
Voters rejected local option sales tax increase (2.25% to 2.75%)
A city referendum to raise Knoxville's local option sales tax from 2.25% to 2.75% failed, with 61.55% voting against. Combined sales tax on STR stays remains 9.25% (7% state + 2.25% local).
Official source →January 1, 2025material
City hotel occupancy tax increased from 3% to 4%
Knoxville City Council approved raising the Hotel Occupancy Privilege Tax (which applies to STR stays under 30 days) from 3% to 4%, effective January 1, 2025. The amendment also broadened permitted uses of the revenue beyond Convention Center debt to tourism promotion and facility improvements. The official city tax return form now states 'Tax Due: 4% of Line 3, Effective JANUARY 1, 2025'.
Official source →
Frequently asked questions
›Is Airbnb legal in Knoxville?
Airbnb is legal in Knoxville, TN, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Knoxville?
Yes. Knoxville requires a Short-Term Rental Unit Permit (Type 1 or Type 2 Operating Permit) to operate a short-term rental, which costs $70 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Knoxville short-term rental permit cost?
The Short-Term Rental Unit Permit (Type 1 or Type 2 Operating Permit) costs $70 (annual renewal). $70 for a Type 1 Operating Permit (owner-occupied, residential district — the standard case) and $120 for a Type 2 Operating Permit (non-owner-occupied, non-residential district). Annual renewal is $50 for both types. City and County business licenses are also required at $15 each.
›Can I Airbnb a non-primary residence in Knoxville?
Yes — Knoxville does not limit short-term rentals to primary residences, although each owner is capped at 2 units. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Knoxville?
Hosts in Knoxville are subject to: Tennessee state sales tax (7%), Knox County local option sales tax (2.25%), City of Knoxville Hotel Occupancy Privilege Tax (4%), Knox County Hotel/Motel Occupancy Tax (5%) — roughly 18.25% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›How many short-term rentals can I own in Knoxville?
Knoxville caps operators at 2 short-term rental units. Always confirm current requirements with the city before operating.
›Do I need insurance to run a short-term rental in Knoxville?
None. The City does not require documentation of insurance to obtain a permit, but officially cautions that homeowners' and rental insurance policies may not cover short-term rental activity. Operators must instead certify life-safety compliance (smoke alarms, CO alarms, fire extinguisher). Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Knoxville?
No — in Knoxville hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.
›What happens if I operate a short-term rental illegally in Knoxville?
Operating or advertising an STR without a permit carries a civil citation of $50 per day; unpermitted units are deemed a public safety hazard and violations are declared a public nuisance, with further legal action possible. The City uses enforcement/monitoring software to detect unpermitted operations and runs a dedicated STR complaint hotline, (865) 337-8275. Permits must be obtained before advertising; the Fire Marshal and other officials reserve the right to inspect for life-safety issues. Persistent complaints may result in permit revocation, and permits are non-transferable (Type 1 permits terminate on property transfer).
›When did Knoxville's current short-term rental rules take effect?
The current ordinance took effect on January 1, 2018. See the change timeline on this page for amendments since, and the sources section for the official text.
Knoxville's STR rules changed 2 times recently.
Get an email the moment Knoxville changes its short-term rental rules — plus renewal reminders before your permit expires.
Watch Knoxville for changes →Free monthly digest · same-day alerts from $5/mo · cancel anytime
Related
Nearby covered markets
- Pigeon Forge, TNPermit required
- Sevier County, TNPermit required
- Gatlinburg, TNPermit required
- Asheville, NCRestricted
- Chattanooga, TNRestricted
More resources
- How to get a short-term rental permit in Knoxville
- Knoxville short-term rental taxes explained
- Can I Airbnb in Knoxville?
- All Tennessee STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Knoxville ranks among cheapest str permit cities
- Knoxville ranks among highest str occupancy tax cities
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- City of Knoxville — Short-Term Rentals (Business License/Tax Office)retrieved July 20, 2026
- City of Knoxville — Short-Term Rental Units Frequently Asked Questions (official PDF)retrieved July 20, 2026
- City of Knoxville — Short-Term Rental Unit Permit Operator Application (official PDF)retrieved July 20, 2026
- City of Knoxville — Hotel Occupancy Privilege Tax return (4% effective January 1, 2025)retrieved July 20, 2026
- Knox County Clerk — Hotel/Motel/Campground/Other Occupancy Tax return (5%)retrieved July 20, 2026
- Tennessee Department of Revenue — Local Occupancy Tax (marketplace remittance rule)retrieved July 20, 2026
- TN TACIR — State and Local Combined Lodging Tax Rates in Tennessee (Appendix C)retrieved July 20, 2026
- Knoxville Code of Ordinances, Ch. 16, Article XV — Short Term Rental Unit Ordinance (Municode)retrieved July 20, 2026
- WUOT — Knoxville voters say 'no' to sales tax raise (Nov 5, 2025)retrieved July 20, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Knoxville and a qualified professional before operating.