Austin vs Gatlinburg
Texas Legal but Limited | Tennessee Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Gatlinburg, Tennessee |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $200 (2-bedroom or fewer); $75 per additional bedroom |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | No — host must remit | Yes |
| Max Fine Example | $500–$2,000/violation; license revocation possible | $50/day per violation; permit suspension/revocation possible |
| Verdict | Gatlinburg has more favorable STR regulations overall. | |
Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Gatlinburg, Tennessee
Status Legal with Permit
Permit Fee $200 (2-bedroom or fewer); $75 per additional bedroom
Tax Rate 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day per violation; permit suspension/revocation possible
Gatlinburg has more favorable STR regulations overall.
Austin Overview
Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.
Full Austin guide →Gatlinburg Overview
Tourist Residency Permit required with annual inspection. STRs prohibited in R-1A and R-2A zones. Properties over 3 stories or 12+ occupants require sprinkler systems.
Full Gatlinburg guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Gatlinburg?
Austin is classified as "Legal but Limited" while Gatlinburg is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $200 (2-bedroom or fewer); $75 per additional bedroom in Gatlinburg.
Which city has higher STR taxes — Austin or Gatlinburg?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax. Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Gatlinburg: $50/day per violation; permit suspension/revocation possible.