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Short-Term Rental Regulations
in Knoxville, TN

Last verified: March 2026 · Report an update

Zoning & Conditions

STRs are allowed with restrictions: in residentially zoned districts only at an owner’s principal residence (Type 1); Type 2 permits are available in non-residential districts where residential use is allowed (owners or tenants in those zones may be eligible as specified). Occupancy limit is two people per bedroom plus two, and a maximum of 12 people; no annual day-cap; local contact must respond within 45 minutes and neighborhood notification is required for Type 1 permits.

How to Obtain a Permit

1) Complete and submit the Short-Term Rental Unit Permit application packet to the City of Knoxville Business License & Tax Office (attachments required: proof of ownership, for Type 1 two documents proving residency, site plan, Life Safety Compliance Affidavit, and City & County business licenses). 2) Pay stated fees (Type 1 fee $70; Type 2 fee $120; City and County business license each $15), mail or deliver to Business License & Tax Office (400 Main St., Suite 453; mailing P.O. Box 1028). 3) Staff review and issuance (applications meeting requirements are issued within 14 business days); permits are valid one year and must be renewed (renewal form provided).

Regulatory Updates — Knoxville

Proposed and recent legislation

PassedAugust 2023

Knoxville STR Registration Ordinance

Knoxville requires all short-term rental operators to register with the city, designate a 24/7 local contact, comply with occupancy and noise standards, and renew annually. The registration number must appear in all listing platform postings.

Under ReviewMay 2025

University of Tennessee Neighborhood STR Density Review

Knoxville's planning commission is reviewing whether additional restrictions should apply to STRs in residential neighborhoods adjacent to the UT campus, where a concentration of investor-owned vacation rentals has generated complaints from long-term residents.

PassedJuly 2023

Tennessee Occupancy Tax Platform Collection

Airbnb, Vrbo, and other major platforms collect and remit Tennessee state sales tax and applicable local occupancy taxes on behalf of Knoxville hosts through the state's marketplace facilitator framework.

Official source

Official Resources

Official Knoxville STR regulation source

Local Resources & Advocacy

Knoxville ChamberLocal

Tracks local business regulations including STR ordinance changes affecting Knoxville's tourism and hospitality sector.

Tennessee Association of REALTORS®Statewide

Statewide association monitoring property regulations including STR-related zoning and licensing changes in Knoxville and other Tennessee markets.

Vacation Rental Management Association (VRMA)National

National trade association providing regulatory monitoring and compliance resources for vacation rental managers in Tennessee urban and Smokies corridor markets.

Frequently Asked Questions

Are short-term rentals allowed in Knoxville, TN?
STRs are allowed with restrictions: in residentially zoned districts only at an owner’s principal residence (Type 1); Type 2 permits are available in non-residential districts where residential use is allowed (owners or tenants in those zones may be eligible as specified). Occupancy limit is two people per bedroom plus two, and a maximum of 12 people; no annual day-cap; local contact must respond within 45 minutes and neighborhood notification is required for Type 1 permits.
Is a permit required to operate a short-term rental in Knoxville?
Yes, a permit is required to operate a short-term rental in Knoxville. 1) Complete and submit the Short-Term Rental Unit Permit application packet to the City of Knoxville Business License & Tax Office (attachments required: proof of ownership, for Type 1 two documents proving residency, site plan, Life Safety Compliance Affidavit, and City & County business licenses). 2) Pay stated fees (Type 1 fee $70; Type 2 fee $120; City and County business license each $15), mail or deliver to Business License & Tax Office (400 Main St., Suite 453; mailing P.O. Box 1028). 3) Staff review and issuance (applications meeting requirements are issued within 14 business days); permits are valid one year and must be renewed (renewal form provided).
How do I get a short-term rental permit in Knoxville?
1) Complete and submit the Short-Term Rental Unit Permit application packet to the City of Knoxville Business License & Tax Office (attachments required: proof of ownership, for Type 1 two documents proving residency, site plan, Life Safety Compliance Affidavit, and City & County business licenses). 2) Pay stated fees (Type 1 fee $70; Type 2 fee $120; City and County business license each $15), mail or deliver to Business License & Tax Office (400 Main St., Suite 453; mailing P.O. Box 1028). 3) Staff review and issuance (applications meeting requirements are issued within 14 business days); permits are valid one year and must be renewed (renewal form provided).
What permits are required to operate a short-term rental in Knoxville?
Operators need a City of Knoxville STR registration (annual renewal with 24/7 local contact and occupancy compliance). Tennessee state sales tax and Knox County occupancy tax registration are also required. Major platforms collect and remit Tennessee taxes automatically. Operators using direct booking channels must register with the Tennessee Department of Revenue independently.
What makes Knoxville's STR market unique?
Knoxville's demand profile is distinctive among Tennessee STR markets: UT football game weekends (Neyland Stadium holds 100,000+) generate some of the highest short-term demand spikes of any market in the Southeast, with rates 5–10x normal during rivalry games. Smokies gateway tourism provides sustained leisure demand. The city's growing food, brewery, and arts scene drives independent urban tourism. Operators near UT campus benefit from sports demand but face increasing regulatory scrutiny.
What taxes apply to Knoxville short-term rental income?
Tennessee state sales tax (7%) and Knox County occupancy tax apply to short-term rental income. The combined effective rate on rental receipts is typically around 10–12%. Airbnb and Vrbo collect and remit Tennessee state and most local taxes on behalf of Knoxville hosts. Operators booking directly must register with the Tennessee DOR.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction