Short-term rental permit cost in Nashville, TN

Combined lodging tax: 16.75% of revenue. Charged on what you earn, so it is not in the totals above.

1 figure is not yet verified against the city (Inspection). They are left out of the total rather than counted as zero, so the real first-year cost is higher than shown.

Conditions attached

• Only one permit per lot in single-family and two-family zoning districts.
• Nashville also charges a flat $2.50 per-night fee on lodging, in addition to the percentage lodging taxes (Metro Nashville finance department). Owner-occupied permits require the owner to permanently reside at the property. Non-owner-occupied permits are restricted to specific commercial and mixed-use zoning districts (MUN, MUL, MUG, MUI, OG, OR20-OR40-A, CN, CL, CS, CA, CF, DTC). Proof of neighbor notification required. Responsible party must be within 25 miles. Proof of current property insurance and hotel occupancy tax payment required for renewal. Four documents required proving owner-occupation for owner-occupied permits. A Davidson County business tax licence is also needed once the rental earns $3,000 a year or more: the County Clerk's short-term rental page sets a Minimal Activity licence at $15 (General Service District) or $30 (Urban Service District, inside the old Nashville city limits) renewed annually for gross income of $3,000 to $99,999, and a one-time Business Tax Licence at the same $15/$30 above $100,000 of gross income, with a return filed with the Tennessee Department of Revenue. Under $3,000 a year no licence is required. The figure in the table is the $30 Urban Service District rate, which is where the commercial and mixed-use zoning districts that allow a non-owner-occupied permit sit.
• Liability cover of at least $1,000,000.00 required.

Source: https://www.nashville.gov/departments/codes/short-term-rentals
Checked 2026-10-14 · BL2024-478 (effective November 12, 2024)