Gatlinburg vs Key West

Tennessee Legal with Permit | Florida 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
Key West, Florida
Status Restricted
Permit Fee $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee
Tax Rate 12.5% combined (5% county tourist dev. + 7.5% state sales)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $5,000/violation and 60 days imprisonment; each day is separate

Gatlinburg has more favorable STR regulations overall.

Permits & Licensing

Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom for STR licensing, while Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee. Gatlinburg renewal is annual, and Key West renewal is annual. Overall, Gatlinburg has a more permissive regulatory environment (Legal with Permit) compared to Key West (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 Key West, hosts pay 12.5% combined (5% county tourist dev. + 7.5% state sales). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

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 Key West, violations can result in Up to $5,000/violation and 60 days imprisonment; each day is separate. 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 →

Key West Overview

Moratorium on new transient rental licenses — only grandfathered properties may operate STRs under 28 days. Existing licenses are property-specific and command $400K+ on the secondary market. Florida DBPR state license also required.

Contact: Key West Licensing Division — (305) 809-3959

Full Key West guide →

Frequently Asked Questions

Is it easier to Airbnb in Gatlinburg or Key West?
Gatlinburg is classified as "Legal with Permit" while Key West is "Restricted." Gatlinburg's permit fee is $200 (2-bedroom or fewer); $75 per additional bedroom compared to $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee in Key West. Overall, Gatlinburg has a more host-friendly regulatory environment.
Which city has higher STR taxes — Gatlinburg or Key West?
Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax, while Key West charges 12.5% combined (5% county tourist dev. + 7.5% state sales).
Which city has stricter fines for illegal short-term rentals?
Gatlinburg: $50/day per violation; permit suspension/revocation possible. Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Gatlinburg and Key West have day limits for Airbnb?
Gatlinburg has no annual day limit. Key West has no annual day limit.
Which city is better for first-time Airbnb hosts — Gatlinburg or Key West?
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. Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee with 12.5% combined (5% county tourist dev. + 7.5% state sales). Automatic tax collection in Gatlinburg and Key West makes compliance easier for beginners.