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Taxes›Tennessee›Hamilton County›Chattanooga

Chattanooga
short-term rental taxes.

Data date: Jun 2026

Start with the recorded local taxes and permit overview for Chattanooga, Tennessee. Check the current requirements for your exact address.

Rental conditions are recorded in Chattanooga
owner-occupied (homestay) allowed citywide incl. residential zones. non-owner-occupied (absentee) barred from residential zones - limited to commercial/mixed-use zones allowing hotels (C-2, C-3, C-4, UGC etc.) or parcels 20+ acres. pre-existing STVRs grandfathered per 2018 STR Unit Act.
Find published guidance for your Chattanooga address
Check published permit and tax guidance for Chattanooga.

What you need to do in Chattanooga

Checked against the source
  1. To do
    Meet the local rental conditions

    owner-occupied (homestay) allowed citywide incl. residential zones. non-owner-occupied (absentee) barred from residential zones - limited to commercial/mixed-use zones allowing hotels (C-2, C-3, C-4, UGC etc.) or parcels 20+ acres. pre-existing STVRs grandfathered per 2018 STR Unit Act.

  2. To do
    Get the Chattanooga short-term rental license or registration

    Fee: Absentee application and renewal fee $500 each (non-refundable).

    Where to apply

  3. To do
    Airbnb, Vrbo and Booking.com collect the 4% Chattanooga occupancy tax for you

    That is per the record. On direct bookings, you collect and remit it yourself.

  4. To confirm
    Find out how often you file and when returns are due

    The record gives no filing schedule. Ask the tax office how often you file and when returns are due.

Verify each step with the authority before you file or apply. Source

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What to know.

owner-occupied (homestay) allowed citywide incl. residential zones. non-owner-occupied (absentee) barred from residential zones - limited to commercial/mixed-use zones allowing hotels (C-2, C-3, C-4, UGC etc.) or parcels 20+ acres. pre-existing STVRs grandfathered per 2018 STR Unit Act. The published guide for Chattanooga lists 4% local occupancy tax. The state table lists a 7% Tennessee state sales tax in addition. Local sales and occupancy taxes may apply in addition to the state base rate. A license or registration is required. Fee: Absentee application and renewal fee $500 each (non-refundable).

At a glance.

Local tax
4%
State tax
7%
Total for a direct booking
11%
License
Required
Local filing
Platform collects
SourceSources & confidenceHow we researchReport a problem with this page

Tax details

Exemptions, penalties, filing information, and effective dates from the linked sources.

Chattanooga: Recorded exemptions

Under TCA §§67-4-1404(b)/67-4-1405(a) as amended by 2025 SB 384 (enacted 5/5/2025), an occupant staying 30+ continuous days is not subject to the tax after the 30th day : for rental agreements entered into, renewed, or amended on or after 7/1/2025 the operator remits the tax for the first 30 days and then stops collecting (previously the occupant received a refund/credit for tax collected). TN DOR states the only exemption from local occupancy tax is for government entities, requiring proof of exemption with the payment name matching the government entity (DOR Taxation of Short-Term Vacation Rentals guide).

Chattanooga: Recorded remittance instructions

marketplace collects city+county occupancy tax via TN DOR for marketplace bookings; host remits to city (and county) only for direct bookings; city rate 4% confirmed (eff 1/1/2021); Hamilton County adds 4%; active enforcement of absentee ban in residential zones

Source for these notes: chattanooga.gov: short term vacation

Platform tax collection guidance for Chattanooga

Collection is shown separately for each booking channel. Direct-booking taxes are paid by the host.

PlatformStateLocal
AirbnbPlatform collectsPlatform collects
VrboPlatform collectsPlatform collects
Booking.comPlatform collectsPlatform collects
DirectYou collect and remitYou collect and remit

Platform collects means the platform pays that tax. You collect and remit means you pay it. Collection details unavailable identifies a missing answer for that channel. Filing duties are listed separately.

Your next steps

  • Get the required license or registration

    Apply before you list. Fee: Absentee application and renewal fee $500 each (non-refundable).

  • Collection of the 4% local tax

    Platforms collect this tax. You collect and remit tax on direct bookings.

  • File your tax returns

    Find out how often you file and when returns are due. The record gives no filing schedule. Ask the tax office how often you file and when returns are due.

  • Check the state tax requirements

    Use the linked state tax instructions to register and file.

Sources & confidence

How we collect and check this information · Report a problem with this page

FigureValueSourceStatus
Chattanooga occupancy tax4%
Source
Source linked
Tennessee state sales tax7%
Source
Source linked
Tennessee filing and tax guidanceSee guidance
Source
Source linked
Licensing recordRequired
Source
Source linked
Official sources for the taxes and permit requirements shown above.

Chattanooga STR tax FAQ

Does Airbnb pay my Chattanooga occupancy taxes?

Airbnb collects this tax. You collect and remit tax on direct bookings.

Do I need a license to Airbnb in Chattanooga?

A license or registration is required. Fee: Absentee application and renewal fee $500 each (non-refundable).

What happens if I don't file?

Penalties and interest depend on the tax and authority. Check the applicable rules and contact the authority about any missed filings or payments.

How often do I file?

Find out how often you file and when returns are due. The record gives no filing schedule. Ask the tax office how often you file and when returns are due.