Short-Term Rental Laws in Pigeon Forge, TN (2026)
Short-term rentals are legal and widespread in Pigeon Forge: 'tourist residences' are a permitted use in the R-2 high-density residential district and commercial districts, requiring city ($15) and Sevier County business licenses plus lodging-tax registration rather than an STR-specific permit. The biggest restriction is the R-1 low-density residential district, where STRs are banned unless the property was operating (and remitting taxes) on or before August 13, 2018 and holds a Short-Term Rental Unit Operating Permit ($300 application, $100 annual renewal, max 12 occupants); the city is also rolling out mandatory annual fire-safety inspections for all STRs (first reading approved April 2025). Always confirm current requirements with the city before operating.
⏳ Verification in progress — data compiled July 10, 2026, human review pending
Pigeon Forge STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental Unit Operating Permit |
| Permit fee | $300 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~13.25% of gross revenue |
| Insurance | No insurance requirement found in city ordinance (Section 511 requires indemnification of the city but no coverage minimum). The widely cited 'Tennessee statewide $500,000 liability insurance' rule appears only in the INTRODUCED version of SB1086 (proposed T.C.A. 66-38-103, 2018) and was not included in the enacted Public Chapter 972; no state statutory insurance minimum for STR providers was located. |
| Enforcement | Enforcement is largely complaint-based: complaints are filed with the Community Development Director, the city investigates, and false complaints are punishable as perjury (T.C.A. 39-16-702). R-1 STRU advertising must display the permit number. Permits can be permanently revoked for false application information, threats to public health/safety, change of ownership, 30+ months of non-use, or three or more violations of generally applicable local law (mirroring T.C.A. 13-7-603/604). The Fire Department ran a voluntary/pilot STR safety-inspection program starting in 2024 (checklist covers fire extinguishers, smoke/CO alarms, escape routes, grill placement, address visibility, verification of third-party sprinkler inspections for large cabins), and the city commission approved first reading of ordinances making annual inspections mandatory on April 28, 2025. |
| Current rules effective | 2018-08-13 |
What will guests pay in taxes on a Pigeon Forge stay?
Itemized occupancy taxes for Pigeon Forge, TN — enter your nightly rate to see the real cost breakdown.
Pigeon Forge occupancy tax calculator
| Gross rent | $450.00 |
| Tennessee state sales tax (7%)· collection varies | $31.50 |
| Sevier County local option sales tax (2.75%)· collection varies | $12.38 |
| City of Pigeon Forge hotel/motel occupancy privilege tax (2.5%)· collection varies | $11.25 |
| City of Pigeon Forge gross receipts tax (1%)· host remits | $4.50 |
| Total tax (13.25%) | $59.63 |
| Guest pays | $509.63 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Pigeon Forge requires Short-Term Rental Unit Operating Permit to operate a short-term rental — the fee is $300, renewed annual.
The $300 application fee (plus $100 annual renewal) applies to the Short-Term Rental Unit Operating Permit required ONLY in the R-1 Low Density Residential district, and only grandfathered properties (operating on or before 2018-08-13) are eligible. Outside R-1 there is no STR-specific operating permit: operators need a City of Pigeon Forge business license ($15 application fee), a Sevier County business license, and tax registrations. A citywide annual fire-safety inspection requirement with separate fees passed first reading in April 2025; the ordinance lets the commission set fees by resolution (an industry source from March 2026 reports $75 initial inspection / $50 annual re-inspection, not confirmed officially). Permits are non-transferable and become void when the property is sold.
Zoning & location rules
STRs ('tourist residences,' defined as any dwelling unit used for overnight and/or weekly rental to tourists) are a permitted use in R-2 High Density Residential (subject to planning commission site-plan approval) and in commercial districts; the city Building Department states overnight rentals are permitted in 'Zoning classification R-2 and higher.' In R-1 Low Density Residential, tourist-residence use is prohibited; only owners who used the property as an STR on or before August 13, 2018 and remitted sales taxes for at least 6 of the preceding 12 months may operate, with an STRU Operating Permit. R-1 STRUs are capped at 2 transients per bedroom plus 2, maximum 12 persons. Citywide, plans for buildings intended for overnight/short-term rental must bear a Tennessee-registered architect's or engineer's seal, and larger cabins (more than 5 sleeping rooms, sleeping more than 12, over 5,000 sq ft, or over 3 stories) must meet hotel/motel (IBC R-1 occupancy) standards including sprinklers.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Tennessee state sales taxApplies to short-term lodging (stays under 90 days). Since January 1, 2021, short-term rental marketplaces (Airbnb, Vrbo, etc.) must collect and remit sales and local occupancy taxes to the TN Department of Revenue for bookings made through the platform; hosts remit directly to the Department for direct bookings. | 7% | varies |
| Sevier County local option sales taxCombined state + local sales tax in Pigeon Forge is 9.75%. Platform collects for marketplace bookings; host remits with sales tax return for direct bookings. | 2.75% | varies |
| City of Pigeon Forge hotel/motel occupancy privilege taxLevied under Municipal Code § 5-602 on occupancy by transients (under 90 continuous days), including tourist cabins. Marketplaces remit to the TN DOR for platform bookings; for direct bookings the operator remits to the City by the 20th of the following month. Effective July 1, 2025, Public Chapter 364 (2025) (amending T.C.A. § 67-4-1404) subjects the first 30 days of occupancy in a short-term rental unit to local occupancy tax regardless of the overall length of stay, for rental agreements entered, renewed, or amended on or after that date; under prior law a stay of 30+ continuous days made the entire rental term exempt, with a refund/credit of tax collected (TN DOR Occupancy Tax Notice #25-07). Note: Sevier County's separate 3% lodging tax applies only OUTSIDE the city limits of Pigeon Forge, Gatlinburg, Sevierville, and Pittman Center, so it does not apply to Pigeon Forge STRs. | 2.5% | varies |
| City of Pigeon Forge gross receipts taxCity business privilege tax of 1% on gross receipts (Municipal Code § 5-503), which expressly includes 'the privilege of renting any rooms, lodging or accommodations furnished to transients by any hotel, inn, tourist cabin...'. Not collected by platforms; the operator files monthly with the City. State/city business tax (gross receipts) also applies via the business license. | 1% | host |
Enforcement & penalties
Enforcement is largely complaint-based: complaints are filed with the Community Development Director, the city investigates, and false complaints are punishable as perjury (T.C.A. 39-16-702). R-1 STRU advertising must display the permit number. Permits can be permanently revoked for false application information, threats to public health/safety, change of ownership, 30+ months of non-use, or three or more violations of generally applicable local law (mirroring T.C.A. 13-7-603/604). The Fire Department ran a voluntary/pilot STR safety-inspection program starting in 2024 (checklist covers fire extinguishers, smoke/CO alarms, escape routes, grill placement, address visibility, verification of third-party sprinkler inspections for large cabins), and the city commission approved first reading of ordinances making annual inspections mandatory on April 28, 2025.
Operating in violation of the R-1 STRU ordinance: $50 fine per violation, with each day a separate offense. Operating or advertising an R-1 STRU without a valid permit is 'deemed a public safety hazard' with a civil penalty of $50 per day per unit, and violations may be abated as a public nuisance. Permanent permit revocation after three or more violations (appeals exhausted). Delinquent city hotel/motel tax accrues penalty and interest.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Recent rule changes in Pigeon Forge
July 1, 2025material
State law: first 30 days of STR occupancy taxable regardless of stay length (Public Chapter 364)
Public Chapter 364 (2025), amending T.C.A. § 67-4-1404, took effect July 1, 2025. For short-term rental agreements entered, renewed, or amended on or after that date, the first 30 days of occupancy are subject to local occupancy tax regardless of the overall length of stay; the marketplace must collect and remit tax for those 30 days and cease collecting for the remainder of the stay. Under prior law, a stay of 30+ continuous days made the entire rental term exempt, with a refund/credit of tax previously collected. Confirmed via TN DOR Occupancy Tax Notice #25-07 (May 2025).
Official source →April 28, 2025material
Mandatory annual fire-safety inspections for STRs pass first reading
Pigeon Forge city commissioners approved first reading of ordinances converting the city's voluntary/pilot STR fire-safety inspection program (begun in 2024) into an official annual requirement for short-term rentals citywide, joining Gatlinburg, Sevierville, and Sevier County. Inspection fees are to be set separately by commission resolution; an industry source (March 2026) reports $75 initial / $50 annual re-inspection. Final adoption date could not be confirmed from official sources.
Official source →January 1, 2024
Sevier County STRU permit program takes effect (unincorporated county only)
Sevier County began requiring annual Short-Term Rental Unit permits with fire inspections for rentals in the unincorporated county. This program does NOT apply inside Pigeon Forge city limits, but it is frequently confused with city requirements and signaled the regional shift toward mandatory STR safety inspections that Pigeon Forge followed in 2025.
Official source →
Frequently asked questions
›Is Airbnb legal in Pigeon Forge?
Yes — Airbnb and other short-term rentals are legal in Pigeon Forge, TN, but you must obtain a Short-Term Rental Unit Operating Permit before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Pigeon Forge?
Yes. Pigeon Forge requires a Short-Term Rental Unit Operating 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 Pigeon Forge short-term rental permit cost?
The Short-Term Rental Unit Operating Permit costs $300 (annual renewal). The $300 application fee (plus $100 annual renewal) applies to the Short-Term Rental Unit Operating Permit required ONLY in the R-1 Low Density Residential district, and only grandfathered properties (operating on or before 2018-08-13) are eligible. Outside R-1 there is no STR-specific operating permit: operators need a City of Pigeon Forge business license ($15 application fee), a Sevier County business license, and tax registrations. A citywide annual fire-safety inspection requirement with separate fees passed first reading in April 2025; the ordinance lets the commission set fees by resolution (an industry source from March 2026 reports $75 initial inspection / $50 annual re-inspection, not confirmed officially). Permits are non-transferable and become void when the property is sold.
›Can I Airbnb a non-primary residence in Pigeon Forge?
Yes — Pigeon Forge 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 Pigeon Forge?
Hosts in Pigeon Forge are subject to: Tennessee state sales tax (7%), Sevier County local option sales tax (2.75%), City of Pigeon Forge hotel/motel occupancy privilege tax (2.5%), City of Pigeon Forge gross receipts tax (1%) — roughly 13.25% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Pigeon Forge?
Operating in violation of the R-1 STRU ordinance: $50 fine per violation, with each day a separate offense. Operating or advertising an R-1 STRU without a valid permit is 'deemed a public safety hazard' with a civil penalty of $50 per day per unit, and violations may be abated as a public nuisance. Permanent permit revocation after three or more violations (appeals exhausted). Delinquent city hotel/motel tax accrues penalty and interest. Enforcement is largely complaint-based: complaints are filed with the Community Development Director, the city investigates, and false complaints are punishable as perjury (T.C.A. 39-16-702). R-1 STRU advertising must display the permit number. Permits can be permanently revoked for false application information, threats to public health/safety, change of ownership, 30+ months of non-use, or three or more violations of generally applicable local law (mirroring T.C.A. 13-7-603/604). The Fire Department ran a voluntary/pilot STR safety-inspection program starting in 2024 (checklist covers fire extinguishers, smoke/CO alarms, escape routes, grill placement, address visibility, verification of third-party sprinkler inspections for large cabins), and the city commission approved first reading of ordinances making annual inspections mandatory on April 28, 2025.
Pigeon Forge's STR rules changed 2 times recently.
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Related
Nearby covered cities
- Gatlinburg, TNPermit required
- Asheville, NCRestricted
- Atlanta, GAPermit required
- Nashville, TNPermit required
- Savannah, GARestricted
Sources
- Pigeon Forge Zoning Ordinance (updated through July 2023), Article V Section 511 - Short-Term Rentals in the R-1 Zone (official city PDF, archived copy)retrieved July 10, 2026
- Pigeon Forge Municipal Code (MTAS) - Title 5 Ch. 5 Gross Receipts Tax (1%) and Ch. 6 Hotel-Motel Tax (2.5%)retrieved July 10, 2026
- City of Pigeon Forge - Building Department (overnight/short-term rental zoning and building requirements)retrieved July 10, 2026
- City of Pigeon Forge - Forms (License / Permits / Etc.) - business license and tax formsretrieved July 10, 2026
- Tennessee Department of Revenue - Taxation of Short-Term Rental Units tax manual, June 2025 edition (marketplace collection rules; reflects Public Chapter 364)retrieved July 10, 2026
- Tennessee Department of Revenue - Occupancy Tax Notice #25-07 (May 2025): Short-Term Rental Unit - 30 Day Occupancy (Public Chapter 364, effective 2025-07-01)retrieved July 10, 2026
- Tennessee Public Chapter 972 (2018) - Short-Term Rental Unit Act (HB1020/SB1086, enacted text)retrieved July 10, 2026
- Sevier County Trustee - Lodging Tax (3% applies only outside city limits)retrieved July 10, 2026
- The Mountain Press - 'Pigeon Forge voting on short term rental inspections' (first reading approved, April 2025)retrieved July 10, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Pigeon Forge and a qualified professional before operating.