Short-term rental tax profile
Nashville, Tennessee
9.75% sales tax + 7% occupancy tax + $2.50 per room-night
Is it allowed here
Short-term rentals are allowed only with an annual STRP permit. Owner-occupied allowed broadly; not-owner-occupied limited to specific zones. Maximum stay 30 days.
What the guest is charged
| Tax | Rate | Applies to | Confidence | |
|---|---|---|---|---|
| Tennessee state sales taxTennessee Department of Revenue | 7% | All fees including cleaning and guest fees | High | Source |
| Davidson County local option sales tax (with transit surcharge)Tennessee Department of Revenue / Metro Nashville | 2.75% | Same base as state sales tax (all fees) | Medium | Secondary source |
| Metro Nashville hotel occupancy privilege taxMetro Government of Nashville & Davidson County Finance | 7% | Gross rental receipts (consideration) | High | Source |
| Metro Nashville occupancy flat feeMetro Government of Nashville & Davidson County Finance | $2.5 per room per night | Per room per night | High | Source |
Who actually remits it
Whoever runs the guest's card owes the tax. That is the whole rule, and it is why the same booking can be taxed differently on two platforms.
| Platform | Merchant of record | Collects | You remit |
|---|---|---|---|
| Airbnb | Platform | Fully | Nothing |
| Vrbo | Partner | None | Sales tax, County occupancy tax, Hotel occupancy tax, Room-night fee |
| Booking.com | Partner | None | Sales tax, County occupancy tax, Hotel occupancy tax, Room-night fee |
| Expedia | Partner | None | Sales tax, County occupancy tax, Hotel occupancy tax, Room-night fee |
| Partner | None | Sales tax, County occupancy tax, Hotel occupancy tax, Room-night fee | |
| Whimstay | Partner | None | Sales tax, County occupancy tax, Hotel occupancy tax, Room-night fee |
| Direct | Partner | None | Sales tax, County occupancy tax, Hotel occupancy tax, Room-night fee |
On a real booking
$200 a night, 1 nights, $50 cleaning
For a one-night stay in one room at a nightly rate of $200 and a $50 cleaning fee: total sales price = $250. Sales tax (state + local 9.75%) = $24.375. Occupancy tax 7% on $250 = $17.50. Room-night flat fee = $2.50. Guest total = $200 + $50 + $24.38 + $17.50 + $2.50 = $294.38. Owner must remit sales tax ($24.38) to state, and occupancy tax and fee ($17.50 + $2.50) to metro by the 20th of next month via Form 510.
What you have to hold
-
Short Term Rental Property Permit
Any short-term rental (<30 days) in Nashville city limits
- Issued by
- Metro Codes Administration
- Cost
- $313 per year
- Renewal
- annual
- Lead time
- Not specified
What you file, and when
| Obligation | Frequency | Due | To |
|---|---|---|---|
| File STRP occupancy tax return and remit hotel occupancy privilege and flat fee taxes. | monthly | Monthly: returns due by the 20th day of the following month | Metro Nashville Finance Collections |
Primary sources
Corzly does not file this for you
You register, you collect, you remit, you hold the licences. What we do is run the property so those numbers are right in the first place, on every channel, without you chasing them.
Talk to us about your portfolioThis profile is research, not tax advice. Rates and rules change. Confirm with the taxing authority before you rely on it.