Gatlinburg vs Phoenix

Tennessee Legal with Permit | Arizona Legal with Permit

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
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations

Both cities have comparable STR regulatory environments.

Permits & Licensing

Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom for STR licensing, while Phoenix charges $250/year (non-refundable). Gatlinburg renewal is annual, and Phoenix renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

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 Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). 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 Phoenix, violations can result in $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. 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 →

Phoenix Overview

Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.

Contact: Phoenix Planning & Development — (602) 534-9723

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Gatlinburg or Phoenix?
Gatlinburg is classified as "Legal with Permit" while Phoenix is "Legal with Permit." Gatlinburg's permit fee is $200 (2-bedroom or fewer); $75 per additional bedroom compared to $250/year (non-refundable) in Phoenix. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Gatlinburg or Phoenix?
Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax, while Phoenix charges ~12.57% combined transient lodging tax (state + county + city).
Which city has stricter fines for illegal short-term rentals?
Gatlinburg: $50/day per violation; permit suspension/revocation possible. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Gatlinburg and Phoenix have day limits for Airbnb?
Gatlinburg has no annual day limit. Phoenix has no annual day limit.
Which city is better for first-time Airbnb hosts — Gatlinburg or Phoenix?
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. Phoenix charges $250/year (non-refundable) with ~12.57% combined transient lodging tax (state + county + city). Automatic tax collection in Gatlinburg and Phoenix makes compliance easier for beginners.