Austin vs Nashville
Texas Legal but Limited | Tennessee Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Nashville, Tennessee |
|---|---|---|
| Legality Status | Legal but Limited | Legal but Limited |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $313 permit fee |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | 6% Short-Term Rental Property Tax + state/local sales 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 for operating without permit; civil penalties up to $500,000 for repeated violations |
| Verdict | Both cities have comparable STR regulatory environments. | |
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
Nashville, Tennessee
Status Legal but Limited
Permit Fee $313 permit fee
Tax Rate 6% Short-Term Rental Property Tax + state/local sales tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day for operating without permit; civil penalties up to $500,000 for repeated violations
Both cities have comparable STR regulatory environments.
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 →Nashville Overview
Owner-occupied permits allowed in all zones. Non-owner-occupied permits frozen — no new applications accepted in most residential zones since 2015. Existing non-owner permits are non-transferable.
Full Nashville guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Nashville?
Austin is classified as "Legal but Limited" while Nashville is "Legal but Limited." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $313 permit fee in Nashville.
Which city has higher STR taxes — Austin or Nashville?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Nashville charges 6% Short-Term Rental Property Tax + state/local sales 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. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations.