Short-term rental & Airbnb taxes in Memphis, TN (2026)
Short-term rental guests in Memphis pay roughly 18.25% 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. 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 |
What will guests pay on a Memphis stay?
Enter a nightly rate to see the itemized occupancy-tax cost.
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.
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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 Memphis and your booking platform.