Short-Term Rental Laws in Memphis, TN (2026)
Memphis requires a Short Term Rental Property Permit for every unit rented for under 30 days: a $300 application fee, $150 annual renewal, $1,000,000 liability insurance, and the permit number displayed in every listing. There is no owner-occupancy rule, night cap, or per-owner unit cap, and STRs are allowed citywide, with operators active before July 1, 2023 grandfathered under Tennessee state law. Guests pay 7% state sales tax, 2.75% Memphis local sales tax, a 5% Shelby County occupancy tax, a 3.5% city STR privilege tax, plus a flat $2.00 per occupied room night city assessment.
Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data
Memphis STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Short Term Rental Property Permit |
| Permit fee | $300 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Minimum stay | 1 night |
| Total occupancy taxes | ~18.25% of gross revenue |
| Insurance | Proof of insurance evidencing fire, hazard and liability coverages of not less than $1,000,000.00 per occurrence must be submitted with the permit application. |
| Enforcement | Administered and enforced by the Memphis and Shelby County Division of Planning and Development (responsibility transferred from the Division of Public Works by Ordinance 5948, signed July 15, 2025). Every listing must display the permit number. Owners must designate a responsible party located within 50 miles who answers calls 24/7 and appears on-site to address violations; failure is grounds for suspension. The city may inspect before issuance or renewal. Enforcement is weak in practice: at a March 3, 2026 council session it was reported that roughly 90% of Memphis STRs lack the required permit, and state law (T.C.A. 13-7-603/604) grandfathers pre-2023 operators, limiting the city's reach; a resolution sponsored by Councilman Philip Spinosa Jr. asks the Mayor's Administration to engage a qualified organization and report back within 90 days of adoption, but the council did not take a final vote at the March 3 session and no adoption certification has been published. |
| Current rules effective | 2023-07-01 |
What will guests pay in taxes on a Memphis stay?
Itemized occupancy taxes for Memphis, TN — enter your nightly rate to see the real cost breakdown.
Memphis occupancy tax calculator
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)· collection varies | $31.50 |
| Local option sales tax (City of Memphis) (2.75%)· collection varies | $12.38 |
| Shelby County hotel/motel room occupancy tax (5%)· collection varies | $22.50 |
| City of Memphis STR occupancy privilege tax (3.5%)· collection varies | $15.75 |
| City of Memphis room-night assessment (flat fee, not a percentage) (0%)· collection varies | $0.00 |
| 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
Memphis requires Short Term Rental Property Permit to operate a short-term rental — the fee is $300, renewed annual.
Non-refundable $300.00 application fee per unit (covers applicant screening and on-site inspection); $150.00 annual renewal fee. Properties found operating without a permit are subject to double fees when permits are obtained. The city's registry program (develop901.com/strr) brands the process 'Short-term Rental Registration'. An older 2016 ordinance (No. 5631) carried a $75 fee but was superseded by Ordinance 5856 effective July 1, 2023.
Zoning & location rules
STRs are permitted citywide in residential dwellings (the ordinance defines an STR as a residential dwelling unit with not more than three sleeping rooms rented for transient occupancy; stays over 30 continuous days, B&Bs, boarding houses, hotels and motels are excluded). Ordinance 5856 expressly removes STRs from the rooming-house zoning rules of Section 2.5.2 of the Memphis and Shelby County Unified Development Code, and the city code contains no zone-by-zone prohibitions or overlay districts for STRs. Per T.C.A. 13-7-603, properties operating as STRs before the July 1, 2023 effective date are grandfathered and exempt from the permit requirement until sold, transferred, out of STR use for 30 continuous months, or found in violation of local law three or more times.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Tennessee state sales taxApplies to rentals under 90 days. Marketplace facilitators (Airbnb/Vrbo) collect and remit for platform bookings; hosts must collect and remit on direct bookings (TN DOR, Taxation of Short-Term Rental Units, May 2023). | 7% | varies |
| Local option sales tax (City of Memphis)Memphis local sales tax rate is 2.75%, effective January 1, 2020 (TN DOR notice). Collected the same way as state sales tax: platform collects for marketplace bookings, host for direct bookings. | 2.75% | varies |
| Shelby County hotel/motel room occupancy tax5% of the consideration charged by the operator (Shelby County, Private Acts 1969 Ch. 131 as amended). Per TN DOR, STR marketplaces collect local occupancy taxes and remit to the Department for platform bookings; otherwise operators pay the county directly (Shelby County Clerk, 901-222-3059). | 5% | varies |
| City of Memphis STR occupancy privilege tax3.5% of consideration charged (Ordinance 5856 Sec. 5, levied pursuant to Ordinance 5619). A hosting platform operating under a voluntary collection agreement with the city is solely responsible for collecting and remitting; if no such agreement exists, the STR owner is liable. | 3.5% | varies |
| City of Memphis room-night assessment (flat fee, not a percentage)Flat $2.00 per paid occupied room night, dedicated to destination marketing (Ordinance 5856 Sec. 5, pursuant to Ordinance 5595). Listed at 0% because it is a flat per-night charge, not a percentage tax. | 0% | varies |
Enforcement & penalties
Administered and enforced by the Memphis and Shelby County Division of Planning and Development (responsibility transferred from the Division of Public Works by Ordinance 5948, signed July 15, 2025). Every listing must display the permit number. Owners must designate a responsible party located within 50 miles who answers calls 24/7 and appears on-site to address violations; failure is grounds for suspension. The city may inspect before issuance or renewal. Enforcement is weak in practice: at a March 3, 2026 council session it was reported that roughly 90% of Memphis STRs lack the required permit, and state law (T.C.A. 13-7-603/604) grandfathers pre-2023 operators, limiting the city's reach; a resolution sponsored by Councilman Philip Spinosa Jr. asks the Mayor's Administration to engage a qualified organization and report back within 90 days of adoption, but the council did not take a final vote at the March 3 session and no adoption certification has been published.
Operating without a permit: double permit fees when permits are obtained. Responsible-party failures: permit suspension of up to 30 days. False, misleading, or fraudulent application statements: permit revocation for 12 months. Three or more court-adjudicated violations of generally applicable local law resulting from the STR's operation: permit revoked and continued STR use prohibited. The ordinance sets no fixed dollar fines beyond doubled fees.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Memphis: 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: STRs are permitted citywide in residential dwellings (the ordinance defines an STR as a residential dwelling unit with not more than three sleeping rooms rented for transient occupancy; stays over 30 continuous days, B&Bs, boarding houses, hotels and motels are excluded). Ordinance 5856 expressly removes STRs from the rooming-house zoning rules of Section 2.5.2 of the Memphis and Shelby County Unified Development Code, and the city code contains no zone-by-zone prohibitions or overlay districts for STRs. Per T.C.A. 13-7-603, properties operating as STRs before the July 1, 2023 effective date are grandfathered and exempt from the permit requirement until sold, transferred, out of STR use for 30 continuous months, or found in violation of local law three or more times. 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 Property Permit
Budget $300 (annual renewal). Non-refundable $300.00 application fee per unit (covers applicant screening and on-site inspection); $150.00 annual renewal fee. Properties found operating without a permit are subject to double fees when permits are obtained. The city's registry program (develop901.com/strr) brands the process 'Short-term Rental Registration'. An older 2016 ordinance (No. 5631) carried a $75 fee but was superseded by Ordinance 5856 effective July 1, 2023. Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
Proof of insurance evidencing fire, hazard and liability coverages of not less than $1,000,000.00 per occurrence must be submitted with the permit application.
- 5
Set up tax collection & remittance
Platforms don't collect everything here: Tennessee state sales tax (7%), Local option sales tax (City of Memphis) (2.75%), Shelby County hotel/motel room occupancy tax (5%), City of Memphis STR occupancy privilege tax (3.5%), City of Memphis room-night assessment (flat fee, not a percentage) (0%) 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 1-night minimum stay — 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 $300 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 without a permit: double permit fees when permits are obtained. Responsible-party failures: permit suspension of up to 30 days. False, misleading, or fraudulent application statements: permit revocation for 12 months. Three or more court-adjudicated violations of generally applicable local law resulting from the STR's operation: permit revoked and continued STR use prohibited. The ordinance sets no fixed dollar fines beyond doubled fees. Administered and enforced by the Memphis and Shelby County Division of Planning and Development (responsibility transferred from the Division of Public Works by Ordinance 5948, signed July 15, 2025). Every listing must display the permit number. Owners must designate a responsible party located within 50 miles who answers calls 24/7 and appears on-site to address violations; failure is grounds for suspension. The city may inspect before issuance or renewal. Enforcement is weak in practice: at a March 3, 2026 council session it was reported that roughly 90% of Memphis STRs lack the required permit, and state law (T.C.A. 13-7-603/604) grandfathers pre-2023 operators, limiting the city's reach; a resolution sponsored by Councilman Philip Spinosa Jr. asks the Mayor's Administration to engage a qualified organization and report back within 90 days of adoption, but the council did not take a final vote at the March 3 session and no adoption certification has been published.
Recent rule changes in Memphis
March 3, 2026
City Council resolution to strengthen STR enforcement
After repeated violent incidents at STRs, Councilman Philip Spinosa Jr. sponsored a resolution to strengthen enforcement; the council heard that roughly 90% of Memphis STRs lack the required permit and that state grandfathering law (three-warnings requirement) hampers action. City leaders were asked to produce an enforceable solution within 90 days. No ordinance change adopted yet — watch for follow-up in mid-2026.
Official source →March 3, 2026
City Council considers resolution to strengthen STR enforcement
After repeated violent incidents at STRs, Councilman Philip Spinosa Jr. sponsored a resolution asking the Mayor's Administration to engage a qualified organization to strengthen monitoring/enforcement and to report back within 90 days of adoption with recommendations, partnerships, and any proposed ordinance amendments. The council heard that roughly 90% of Memphis STRs lack the required permit and that state grandfathering law (three-warnings requirement) hampers action. The council did not take a final vote at the March 3 session, and as of 2026-07-20 no adoption certification or ordinance change has been published — watch for follow-up in mid-to-late 2026.
Official source →July 15, 2025material
Ordinance 5948 transfers STR administration to the Division of Planning and Development
Mayor signed Ordinance 5948 on July 15, 2025, amending Ordinance 5856 to replace the Division of Public Works with the Memphis and Shelby County Division of Planning and Development as administrator and enforcer of the STR ordinance (part of the new Division of Community Enhancement reorganization effective July 1, 2025). Registration now runs through the Develop 901 citizen portal.
Official source →July 1, 2023material
Ordinance 5856 (amended Short Term Rental Ordinance) took effect
Replaced the 2016 regime (Ordinance 5631, $75 fee) with the current one: Short Term Rental Property Permit required per unit, $300 application fee, $150 annual renewal, $1M insurance, permit number in listings, responsible party within 50 miles, 3.5% city privilege tax and $2/room-night assessment codified.
Official source →
Frequently asked questions
›Is Airbnb legal in Memphis?
Yes — Airbnb and other short-term rentals are legal in Memphis, TN, but you must obtain a Short Term Rental Property Permit before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Memphis?
Yes. Memphis requires a Short Term Rental Property Permit to operate a short-term rental, which costs $300 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Memphis short-term rental permit cost?
The Short Term Rental Property Permit costs $300 (annual renewal). Non-refundable $300.00 application fee per unit (covers applicant screening and on-site inspection); $150.00 annual renewal fee. Properties found operating without a permit are subject to double fees when permits are obtained. The city's registry program (develop901.com/strr) brands the process 'Short-term Rental Registration'. An older 2016 ordinance (No. 5631) carried a $75 fee but was superseded by Ordinance 5856 effective July 1, 2023.
›Can I Airbnb a non-primary residence in Memphis?
Yes — Memphis does not limit short-term rentals to primary residences. 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 Memphis?
Hosts in Memphis are subject to: Tennessee state sales tax (7%), Local option sales tax (City of Memphis) (2.75%), Shelby County hotel/motel room occupancy tax (5%), City of Memphis STR occupancy privilege tax (3.5%), City of Memphis room-night assessment (flat fee, not a percentage) (0%) — 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.
›Is there a minimum stay for short-term rentals in Memphis?
Yes — Memphis requires a minimum stay of 1 night for short-term rentals. Always confirm current requirements with the city before operating.
›Do I need insurance to run a short-term rental in Memphis?
Proof of insurance evidencing fire, hazard and liability coverages of not less than $1,000,000.00 per occurrence must be submitted with the permit application. Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Memphis?
No — in Memphis 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 Memphis?
Operating without a permit: double permit fees when permits are obtained. Responsible-party failures: permit suspension of up to 30 days. False, misleading, or fraudulent application statements: permit revocation for 12 months. Three or more court-adjudicated violations of generally applicable local law resulting from the STR's operation: permit revoked and continued STR use prohibited. The ordinance sets no fixed dollar fines beyond doubled fees. Administered and enforced by the Memphis and Shelby County Division of Planning and Development (responsibility transferred from the Division of Public Works by Ordinance 5948, signed July 15, 2025). Every listing must display the permit number. Owners must designate a responsible party located within 50 miles who answers calls 24/7 and appears on-site to address violations; failure is grounds for suspension. The city may inspect before issuance or renewal. Enforcement is weak in practice: at a March 3, 2026 council session it was reported that roughly 90% of Memphis STRs lack the required permit, and state law (T.C.A. 13-7-603/604) grandfathers pre-2023 operators, limiting the city's reach; a resolution sponsored by Councilman Philip Spinosa Jr. asks the Mayor's Administration to engage a qualified organization and report back within 90 days of adoption, but the council did not take a final vote at the March 3 session and no adoption certification has been published.
›When did Memphis's current short-term rental rules take effect?
The current ordinance took effect on July 1, 2023. See the change timeline on this page for amendments since, and the sources section for the official text.
Memphis's STR rules changed 3 times recently.
Get an email the moment Memphis changes its short-term rental rules — plus renewal reminders before your permit expires.
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More resources
- How to get a short-term rental permit in Memphis
- Memphis short-term rental taxes explained
- Can I Airbnb in Memphis?
- All Tennessee STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Memphis ranks among most expensive str permit cities
- Memphis ranks among highest str occupancy tax cities
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- What are minimum-stay rules?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- City of Memphis Ordinance No. 5856 (Short Term Rental Ordinance) and Ordinance No. 5948 — certified text (Shelby County Document Center)retrieved July 20, 2026
- Short-term Rental Registry — Memphis & Shelby County Division of Planning and Development (Develop 901)retrieved July 20, 2026
- Licenses and Permits — City of Memphisretrieved July 20, 2026
- Taxation of Short-Term Rental Units (May 2023) — Tennessee Department of Revenueretrieved July 20, 2026
- Room Occupancy Taxes — Shelby County, TNretrieved July 20, 2026
- Important Notice: Local Sales Tax Rate Change for Memphis — Tennessee Department of Revenueretrieved July 20, 2026
- Neighbors demand action from Memphis City Council after repeated violence at short-term rentals — Action News 5 (Mar 4, 2026)retrieved July 20, 2026
- Resolution Addressing Public Safety Concerns Related to Short-Term Rental Properties (Spinosa, Feb 2026) — full text, City of Memphisretrieved 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 Memphis and a qualified professional before operating.