Gatlinburg vs Honolulu

Tennessee Legal with Permit | Hawaii Restricted

Disclaimer: General information only — not legal advice. Verify with your local government.

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
Honolulu, Hawaii
Status Restricted
Permit Fee $1,000 initial registration; $500 annual renewal
Tax Rate ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $10,000/day for recurring violations; $5,000 initial fine

Gatlinburg has more favorable STR regulations overall.

Permits & Licensing

Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom for STR licensing, while Honolulu charges $1,000 initial registration; $500 annual renewal. Gatlinburg renewal is annual, and Honolulu renewal is annual. Overall, Gatlinburg has a more permissive regulatory environment (Legal with Permit) compared to Honolulu (Restricted).

Tax Obligations

In Gatlinburg, hosts pay 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax. In Honolulu, hosts pay ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET). A key difference: platforms like Airbnb automatically collect taxes in Gatlinburg, but hosts in Honolulu must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Gatlinburg face penalties including $50/day per violation; permit suspension/revocation possible. In Honolulu, violations can result in $10,000/day for recurring violations; $5,000 initial fine. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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.

Contact: Building & Planning Department — (865) 436-7792

Full Gatlinburg guide →

Honolulu Overview

STRs limited to resort-zoned and eligible apartment-zoned areas. Hosts must register as B&B (owner-occupied, max 2 guest rooms) or TVU (whole-home in eligible zones). Registrations are non-transferable.

Contact: Dept. of Planning and Permitting — (808) 768-7887

Full Honolulu guide →

Frequently Asked Questions

Is it easier to Airbnb in Gatlinburg or Honolulu?
Gatlinburg is classified as "Legal with Permit" while Honolulu is "Restricted." Gatlinburg's permit fee is $200 (2-bedroom or fewer); $75 per additional bedroom compared to $1,000 initial registration; $500 annual renewal in Honolulu. Overall, Gatlinburg has a more host-friendly regulatory environment.
Which city has higher STR taxes — Gatlinburg or Honolulu?
Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax, while Honolulu charges ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET). Notably, Gatlinburg benefits from automatic platform tax collection, while hosts in Honolulu must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Gatlinburg: $50/day per violation; permit suspension/revocation possible. Honolulu: $10,000/day for recurring violations; $5,000 initial fine. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Gatlinburg and Honolulu have day limits for Airbnb?
Gatlinburg has no annual day limit. Honolulu has no annual day limit.
Which city is better for first-time Airbnb hosts — Gatlinburg or Honolulu?
For new hosts, consider the total cost of entry: Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom for permits with 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax in taxes. Honolulu charges $1,000 initial registration; $500 annual renewal with ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET). Automatic tax collection in Gatlinburg makes compliance easier for beginners.