Short-term rental rules · Gatlinburg, Tennessee
Short-term rentals in Gatlinburg, explained properly.
Short-term rentals are a mainstay of the Gatlinburg/Smoky Mountains economy and are allowed in most of the city and unincorporated Sevier County, but two rules trip people up: Gatlinburg bans new short-term rentals in its R-1A and R-2A residential zones, and unincorporated Sevier County (outside any city) now requires its own separate annual permit and fire-safety inspection, on top of whatever the city requires inside its limits.
Draft. These rules were compiled from the official sources listed below but have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Yes, in most zoning districts[1] |
| Zones where new STRs are banned | Gatlinburg's R-1A and R-2A residential zones[1]Confirming |
| City permit required (inside Gatlinburg)? | Yes — Tourist Residency Permit[2] |
| County permit required (unincorporated Sevier County)? | Yes — Short-Term Rental Unit (STRU) Permit[3] |
| Owner-occupancy required? | No[1] |
| Fire/safety inspection required? | Yes, annually — both city and county[3] |
| Business license required? | Yes — city and county, $15 each[4]Confirming |
| 24/7 local contact required? | Yes[4] |
| Typical combined lodging tax | ~12.25%[4]Confirming |
| Last researched | September 25, 2026 |
Watch this market
Want to know when Gatlinburg's rules change?
We watch Gatlinburg's official rule pages, council agendas and Tennessee legislation. When a change affecting short-term rentals is proposed or passed, we email you what changed, when it takes effect, and a link to the source.
No spam. Unsubscribe anytime. See our privacy policy.
Detailed rules
The full picture, section by section
Eligibility & zoning
| Zones where STRs are permitted by right | R-1, R-2, R-3, C-1, C-2, tourist commercial, and mixed-use[1] Short-term rentals are permitted by right across most of Gatlinburg's zoning map outside the two excluded residential zones. Property-specific zoning should always be confirmed with Gatlinburg's Planning and Codes Department, since HOA covenants can be stricter than the city's zoning. |
|---|---|
| Where does the county permit apply? | Unincorporated Sevier County only[3] The county's Short-Term Rental Unit permit program applies only outside any incorporated city (Gatlinburg, Pigeon Forge, Sevierville, Gatlinburg, Pittman Center). Properties inside a city follow that city's rules instead of the county's. |
| State law framework | Tennessee Short-Term Rental Unit Act (2018) sets baseline rules[5] Tennessee's statewide Short-Term Rental Unit Act establishes a baseline regulatory framework and grandfathers certain existing rentals from later local restrictions, but still allows cities and counties to adopt their own permit, safety, and zoning requirements on top of it — which is why Gatlinburg and Sevier County both layer their own programs on the state framework. |
Licensing & application
| City permit fee (Tourist Residency Permit) | $200 for 2 bedrooms or fewer, +$75 per additional bedroom[4]Confirming Applies to: Fee amount from a secondary source — confirm with city Finance/Codes Gatlinburg's tourist residency permit fee scales with bedroom count. Confirm the current fee schedule directly with the city, since the city's own permit page did not render its fee table for automated review. |
|---|---|
| County permit fee (STRU Permit) | $250/year (12 or fewer occupants); +$25/occupant beyond 12[3] Sevier County charges a flat $250 annual fee for units sleeping 12 or fewer occupants, plus $25 per additional occupant for larger units. Payments are non-refundable, and a third or later re-inspection costs an additional $25. |
| County application process | Apply via CommunityConnect.io with a separate application per property[3] Owners apply through the CommunityConnect.io portal, submitting a completed permit application and property information for each rental address; a separate application is required for each property, and payment is made online or by mailed check. |
Operating rules & enforcement
| Penalty for operating without a permit | Fines starting at $500 per violation[4]Confirming Applies to: City of Gatlinburg figure from a secondary source; confirm exact fine schedule with the city Operating an unpermitted short-term rental in Gatlinburg carries fines starting at $500 per violation, with possible permit suspension or revocation for repeat or serious violations. |
|---|---|
| County compliance & re-inspection | Fines/penalties for non-compliance; failed inspections require correction and re-inspection[3] Owners who fail to comply with the county's permit and inspection program face fines or other penalties. If an inspection is failed, the owner must make corrections and schedule a re-inspection before a permit will issue. |
| Insurance & safety self-certification | Proof of insurance and a life-safety self-certification required with city application[4]Confirming Applies to: Fee/requirement detail from a secondary source; confirm exact application checklist with the city Gatlinburg's permit application requires proof of insurance, a parking plan, and a life-safety self-certification in addition to the 24/7 local contact designation. |
Taxes & fees
| State sales tax on lodging | 7%[6] Tennessee's state sales tax rate applies to short-term rental lodging statewide, per the Tennessee Department of Revenue's short-term rental tax manual. |
|---|---|
| Sevier County local option sales tax | 2.75%[4]Confirming Applies to: Figure from a secondary source; confirm against the Tennessee Department of Revenue's local tax rate table Sevier County's local option sales tax rate applies on top of the state rate for short-term rental transactions countywide, including within Gatlinburg. |
| City hotel/motel tax | 3% per city's own tax return form[7]Confirming Applies to: Discrepancy between primary form (3%) and secondary source (2.5%) — needs review Gatlinburg's own hotel/motel tax return form states a 3% city tax rate on gross rental proceeds, which conflicts with a secondary source's figure of 2.5%. Confirm the current rate directly with Gatlinburg Finance before relying on either figure. |
| State tax registration required? | Yes — Tennessee Department of Revenue account[4] Operators must register with the Tennessee Department of Revenue for a sales and occupancy tax account in addition to city/county business licenses. |
Changes
Recent and pending changes
Checked the Tennessee General Assembly's bill tracking, Sevier County's news/announcements page, and Gatlinburg's codes-and-permits pages as of the research date below. No pending Gatlinburg or Sevier County ordinance changes to short-term rental rules were found; the county's STRU permit program (effective January 1, 2024) is the most recent material change identified.
Following county commission resolutions passed June 26, 2023, Sevier County began requiring an annual permit and fire-safety inspection for every short-term rental unit in unincorporated areas of the county, effective January 1, 2024.
Tennessee's 2018 statewide Short-Term Rental Unit Act set a baseline framework for local STR regulation, including grandfathering provisions for existing rentals, on top of which Gatlinburg and Sevier County have layered their own permit programs.
Sources
Every rule above links to one of these
Newsletter
Not tracking Gatlinburg specifically?
One email a month with STR rule changes across the US markets we track.
No spam. Unsubscribe anytime. See our privacy policy.
Questions
Managing properties in several cities?
Tell us what you're trying to decide and which markets you operate in. We read every message.
This page is general information compiled from official sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.