Short-Term Rental Laws in Sevier County, TN (2026)
Short-term rentals are legal throughout unincorporated Sevier County with no owner-occupancy, night-cap, or minimum-stay restrictions, but since January 1, 2024 every STR outside city limits must hold an annual Short-Term Rental Unit Operational Permit from the Sevier County Fire Marshal's Office ($250/year for units sleeping 12 or fewer; $25 per additional occupant for larger units) and pass a yearly life-safety inspection. Guests pay roughly 12.75% in combined taxes (9.75% state/local sales tax plus a 3% county lodging tax), which Airbnb/Vrbo remit for platform bookings while hosts remit directly on direct bookings. Properties inside Sevierville, Pigeon Forge, Gatlinburg, or Pittman Center follow those cities' separate rules instead. Always confirm current requirements with the city before operating.
Sevier County STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Sevier County Short-Term Rental Unit (STRU) Annual Operational Permit |
| Permit fee | $250 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~12.75% of gross revenue |
| Enforcement | Enforcement is run by the Sevier County Fire Marshal's Office / Sevier County Fire & Rescue, which hired 8 full-time fire inspectors working assigned districts to inspect the county's 6,500+ STRUs annually. Permits are issued only after passing the annual life-safety inspection (smoke alarms, CO detectors, egress, fire extinguishers, electrical, structural); failed items must be corrected and re-inspected ($25 per inspection from the third onward). Applications received after the initial March 31, 2024 window (extended to June 30, 2024) lose grandfathering and must bring the structure up to the most current code. Units sleeping 13+ pay higher fees and face stricter fire-protection requirements; owners may temporarily reduce listed occupancy to 12 or fewer via a letter emailed to the Fire Marshal's Office (firepermits@seviercountytn.gov). Separately, since 2023 licensed STRs that are not primary residences are assessed at the 40% commercial property-tax ratio instead of the 25% residential ratio. |
| Current rules effective | 2024-01-01 |
What will guests pay in taxes on a Sevier County stay?
Itemized occupancy taxes for Sevier County, TN — enter your nightly rate to see the real cost breakdown.
Sevier County 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 |
| Sevier County lodging (occupancy) tax (3%)· collection varies | $13.50 |
| Total tax (12.75%) | $57.38 |
| Guest pays | $507.38 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Sevier County requires Sevier County Short-Term Rental Unit (STRU) Annual Operational Permit to operate a short-term rental — the fee is $250, renewed annual.
$250.00 per year for any STRU that sleeps 12 or fewer; $250.00 plus $25.00 per additional occupant for STRUs that sleep 13 or more. Third and subsequent inspections cost $25 each. Fees are paid to 'Sevier County Fire Prevention' (online via communityconnect.io or by check) and are non-refundable. Fee schedule adopted by Resolution 2023-06-10.
Zoning & location rules
Unincorporated Sevier County is zoned under the Sevier County Zoning Resolution (amended Dec. 15, 2025) with districts A-1, R-1, R-2M, R-2, C-1, C-2, I-1, and CS. The resolution contains no STR-specific district prohibition and expressly recognizes 'Single Family, Two Family Dwelling (Transient, over-night rentals)' as a residential use (requiring 1 parking space per bedroom), so overnight rental cabins operate throughout the county's residential and agricultural districts. The county's STRU permit program applies uniformly to all STRs outside city limits; properties inside Sevierville, Pigeon Forge, Gatlinburg, or Pittman Center city limits are governed by those cities' separate STR ordinances and taxes.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Tennessee state sales taxSales tax applies to rentals of rooms/lodgings for periods under 90 days and to all rental fees (cleaning fees, non-refundable deposits, etc.). Marketplace facilitators (Airbnb/Vrbo) collect and remit for platform bookings; the owner collects and remits for direct bookings. | 7% | varies |
| Sevier County local option sales taxCombined state + local sales tax registration is 9.75% per the Sevier County Trustee (7% state + 2.75% local option). Same platform-vs-host split as state sales tax. | 2.75% | varies |
| Sevier County lodging (occupancy) taxApplies to overnight rentals outside the city limits of Sevierville, Pigeon Forge, Pittman Center, and Gatlinburg; collected on rent, cleaning fees, pet fees and other required fees. Since Jan 1, 2021, STR marketplaces (Airbnb/Vrbo) must remit the occupancy tax to the TN Dept. of Revenue for platform bookings; for direct bookings the host remits to the Sevier County Trustee's Office by the 20th of each month. Effective July 1, 2025, the first 30 days of any stay are taxable regardless of overall length of stay (TN Important Notice #25-07). | 3% | varies |
Enforcement & penalties
Enforcement is run by the Sevier County Fire Marshal's Office / Sevier County Fire & Rescue, which hired 8 full-time fire inspectors working assigned districts to inspect the county's 6,500+ STRUs annually. Permits are issued only after passing the annual life-safety inspection (smoke alarms, CO detectors, egress, fire extinguishers, electrical, structural); failed items must be corrected and re-inspected ($25 per inspection from the third onward). Applications received after the initial March 31, 2024 window (extended to June 30, 2024) lose grandfathering and must bring the structure up to the most current code. Units sleeping 13+ pay higher fees and face stricter fire-protection requirements; owners may temporarily reduce listed occupancy to 12 or fewer via a letter emailed to the Fire Marshal's Office (firepermits@seviercountytn.gov). Separately, since 2023 licensed STRs that are not primary residences are assessed at the 40% commercial property-tax ratio instead of the 25% residential ratio.
The county states that owners of STRUs outside city limits who fail to comply with the permit program 'may be issued' fines or other penalties; specific fine amounts are not published on official county pages. Operating after a failed/absent inspection also blocks permit issuance, and late applicants lose building-code grandfathering.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Sevier County: 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: Unincorporated Sevier County is zoned under the Sevier County Zoning Resolution (amended Dec. 15, 2025) with districts A-1, R-1, R-2M, R-2, C-1, C-2, I-1, and CS. The resolution contains no STR-specific district prohibition and expressly recognizes 'Single Family, Two Family Dwelling (Transient, over-night rentals)' as a residential use (requiring 1 parking space per bedroom), so overnight rental cabins operate throughout the county's residential and agricultural districts. The county's STRU permit program applies uniformly to all STRs outside city limits; properties inside Sevierville, Pigeon Forge, Gatlinburg, or Pittman Center city limits are governed by those cities' separate STR ordinances and taxes. Confirm your parcel's zoning with the county before applying.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the Sevier County Short-Term Rental Unit (STRU) Annual Operational Permit
Budget $250 (annual renewal). $250.00 per year for any STRU that sleeps 12 or fewer; $250.00 plus $25.00 per additional occupant for STRUs that sleep 13 or more. Third and subsequent inspections cost $25 each. Fees are paid to 'Sevier County Fire Prevention' (online via communityconnect.io or by check) and are non-refundable. Fee schedule adopted by Resolution 2023-06-10. Apply through the county — the official application page is linked in the sources below.
- 4
Set up tax collection & remittance
Platforms don't collect everything here: Tennessee state sales tax (7%), Sevier County local option sales tax (2.75%), Sevier County lodging (occupancy) tax (3%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 5
Calendar the renewal before you forget it
This permit renews annual (budget $250 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 6
Know the cost of getting it wrong
The county states that owners of STRUs outside city limits who fail to comply with the permit program 'may be issued' fines or other penalties; specific fine amounts are not published on official county pages. Operating after a failed/absent inspection also blocks permit issuance, and late applicants lose building-code grandfathering. Enforcement is run by the Sevier County Fire Marshal's Office / Sevier County Fire & Rescue, which hired 8 full-time fire inspectors working assigned districts to inspect the county's 6,500+ STRUs annually. Permits are issued only after passing the annual life-safety inspection (smoke alarms, CO detectors, egress, fire extinguishers, electrical, structural); failed items must be corrected and re-inspected ($25 per inspection from the third onward). Applications received after the initial March 31, 2024 window (extended to June 30, 2024) lose grandfathering and must bring the structure up to the most current code. Units sleeping 13+ pay higher fees and face stricter fire-protection requirements; owners may temporarily reduce listed occupancy to 12 or fewer via a letter emailed to the Fire Marshal's Office (firepermits@seviercountytn.gov). Separately, since 2023 licensed STRs that are not primary residences are assessed at the 40% commercial property-tax ratio instead of the 25% residential ratio.
Recent rule changes in Sevier County
July 1, 2025material
TN local occupancy tax now applies to first 30 days of any stay (Important Notice #25-07)
Effective July 1, 2025, the first 30 days of occupancy in a short-term rental unit is subject to Tennessee local occupancy tax regardless of the overall length of stay, changing the prior treatment of 30+ day stays.
Official source →June 30, 2024
STRU permit application deadline extended to June 30, 2024
Sevier County extended the initial application deadline for the Short-Term Rental Unit Inspection Program from March 31, 2024 to June 30, 2024, giving owners roughly three extra months to apply. Applications received after the initial window lose grandfathering to the code in effect when the structure was built.
Official source →January 1, 2024critical
Countywide STRU annual permit and inspection program takes effect
All short-term rental units in Sevier County outside city limits must obtain an annual operational permit from the Fire Marshal's Office ($250/year for 12 or fewer occupants; +$25 per occupant for 13+) and pass a yearly life-safety inspection. Non-compliance can result in fines or other penalties.
Official source →June 26, 2023material
County Commission adopts STRU codes and fee schedule (Resolutions 2023-06-09 and 2023-06-10)
The Sevier County Board of Commissioners passed resolutions adopting the fire/building codes and fee schedule underpinning the STRU permit program; the county then obtained exempt-jurisdiction status from the State of Tennessee on November 28, 2023, allowing local code enforcement.
Official source →May 1, 2023material
Non-primary-residence STRs reclassified to 40% commercial property-tax assessment
Prompted by the state comptroller's office, Sevier County began assessing licensed short-term rentals that are not primary residences at the 40% commercial ratio instead of the 25% residential ratio, starting with tax bills issued in October 2023 — a roughly 60% increase in effective property tax for affected owners.
Official source →
Frequently asked questions
›Is Airbnb legal in Sevier County?
Yes — Airbnb and other short-term rentals are legal in Sevier County, TN, but you must obtain a Sevier County Short-Term Rental Unit (STRU) Annual Operational Permit before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Sevier County?
Yes. Sevier County requires a Sevier County Short-Term Rental Unit (STRU) Annual Operational Permit to operate a short-term rental, which costs $250 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Sevier County short-term rental permit cost?
The Sevier County Short-Term Rental Unit (STRU) Annual Operational Permit costs $250 (annual renewal). $250.00 per year for any STRU that sleeps 12 or fewer; $250.00 plus $25.00 per additional occupant for STRUs that sleep 13 or more. Third and subsequent inspections cost $25 each. Fees are paid to 'Sevier County Fire Prevention' (online via communityconnect.io or by check) and are non-refundable. Fee schedule adopted by Resolution 2023-06-10.
›Can I Airbnb a non-primary residence in Sevier County?
Yes — Sevier County 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 Sevier County?
Hosts in Sevier County are subject to: Tennessee state sales tax (7%), Sevier County local option sales tax (2.75%), Sevier County lodging (occupancy) tax (3%) — roughly 12.75% 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 Sevier County?
The county states that owners of STRUs outside city limits who fail to comply with the permit program 'may be issued' fines or other penalties; specific fine amounts are not published on official county pages. Operating after a failed/absent inspection also blocks permit issuance, and late applicants lose building-code grandfathering. Enforcement is run by the Sevier County Fire Marshal's Office / Sevier County Fire & Rescue, which hired 8 full-time fire inspectors working assigned districts to inspect the county's 6,500+ STRUs annually. Permits are issued only after passing the annual life-safety inspection (smoke alarms, CO detectors, egress, fire extinguishers, electrical, structural); failed items must be corrected and re-inspected ($25 per inspection from the third onward). Applications received after the initial March 31, 2024 window (extended to June 30, 2024) lose grandfathering and must bring the structure up to the most current code. Units sleeping 13+ pay higher fees and face stricter fire-protection requirements; owners may temporarily reduce listed occupancy to 12 or fewer via a letter emailed to the Fire Marshal's Office (firepermits@seviercountytn.gov). Separately, since 2023 licensed STRs that are not primary residences are assessed at the 40% commercial property-tax ratio instead of the 25% residential ratio.
Sevier County's STR rules changed 1 time recently.
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Related
Nearby covered markets
- Pigeon Forge, TNPermit required
- Gatlinburg, TNPermit required
- Asheville, NCRestricted
- Atlanta, GAPermit required
- Nashville, TNPermit required
Sources
- Sevier County, TN — Short-Term Rental Unit Permit Program Informationretrieved July 10, 2026
- Sevier County Trustee — Lodging Taxretrieved July 10, 2026
- Sevier County Fire Marshal's Office — STRU Permit Program Presentation (PDF)retrieved July 10, 2026
- Sevier County, TN — Sevier County Extends Deadline for STRU Inspection Program Applicationsretrieved July 10, 2026
- Sevier County Planning & Zoning — Sevier County Zoning Resolution (amended 12-15-2025)retrieved July 10, 2026
- Tennessee Department of Revenue — Local Occupancy Taxretrieved July 10, 2026
- Tennessee Department of Revenue — Taxation of Short-Term Vacation Rentals (webinar deck, PDF, August 2023)retrieved July 11, 2026
- Tennessee Department of Revenue — Important Notice #25-07: Short-Term Rental Unit 30-Day Occupancy (Public Chapter 364, 2025)retrieved July 11, 2026
- Avalara MyLodgeTax — STR owners in Sevier County, Tennessee, must now pay commercial property tax ratesretrieved 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 Sevier County and a qualified professional before operating.