Short-term rental property taxes in Tennessee

State checkup now · packet coming

Tennessee taxes most short-term rentals as commercial property, assessed at 40% of value instead of 25%. If you live in the rental part of the year, it may qualify for the residential rate, which cuts the tax by more than a third.

Rental areas

Great Smoky Mountains (Gatlinburg, Pigeon Forge, Sevierville)Sevier CountyState checkup now · packet coming
Townsend, Wears ValleyBlount CountyState checkup now · packet coming
NashvilleDavidson CountyState checkup now · packet coming
ChattanoogaHamilton CountyState checkup now · packet coming

Ways to lower the bill in Tennessee

Check the residential rate
A short-term rental is assessed as residential if it’s your principal residence with no more than one rental unit, or if it’s your one additional parcel, you stay there at least 14 days a year (or 10% of the days it’s rented, if more), and you file the county’s sworn affidavit.
When: Affidavit by September 1 of the year before
TN Comptroller Bulletin 2021-01 (STR classification)
Check that the classification is right
A property rented for 30 days or more at a time isn’t a short-term rental. If it’s been classed commercial by mistake, ask the assessor to correct it.
When: Before the County Board of Equalization meets (usually June)
Appeal the value in a reappraisal year
Tennessee counties reappraise every four to six years. In a reappraisal year, compare your value with sales of similar cabins and homes.
When: County Board of Equalization, usually in June

Get the Tennessee packet when it opens

A Tennessee packet (classification affidavit help and the value appeal) is being built, starting with Sevier County.

General information as of November 2026, not legal or tax advice. Your county’s notice and rules control, and deadlines can change.