Gatlinburg vs Nashville

Tennessee Legal with Permit | Tennessee Legal but Limited

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
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

Gatlinburg has more favorable STR regulations overall.

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 →

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 Gatlinburg or Nashville?
Gatlinburg is classified as "Legal with Permit" while Nashville is "Legal but Limited." Gatlinburg's permit fee is $200 (2-bedroom or fewer); $75 per additional bedroom compared to $313 permit fee in Nashville.
Which city has higher STR taxes — Gatlinburg or Nashville?
Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax, 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?
Gatlinburg: $50/day per violation; permit suspension/revocation possible. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations.