This guide covers Sevierville, Tennessee only. Nearby markets often confused with Sevierville in STR regulation research include:
- Gatlinburg: Separate city with its own STR permit process and rules.
- Pigeon Forge: Distinct city, different STR licensing and enforcement.
- Wears Valley: Unincorporated area of Sevier County, regulated by county STR rules.
- Kodak: Unincorporated, subject to Sevier County STR regulations, not city rules.
Legality Verdict
Short-term rentals are legal in Sevierville with an annual city permit, business license, and compliance with city and state tax rules. No cap or moratorium is in effect. Enforcement is compliance-driven, not aggressive.
- Legality Status: 4/5
- License Availability: 4/5
- Compliance Cost (% revenue): 2/5
- Regulatory Stability: 4/5
- Enforcement Climate: 4/5
TL;DR
Sevierville defines STRs as rentals under 30 days and requires an annual city operational permit (fee [needs verification]), a $15 business license, and a life-safety inspection. The total lodging tax is 15.75% (state, county, city). No occupancy cap or license cap is codified. The main investor risk is the high tax stack and the need to maintain compliance with annual inspections and business licensing. The biggest gotcha: permit and inspection are mandatory every year.
Quick Facts
| Item | Detail |
|---|---|
| STR Definition | Rental of a dwelling for less than 30 days to transients City of Sevierville – Hospitality Tax |
| Registration Required | Yes — City STR Operational Permit and business license City of Sevierville – Short-Term Rentals |
| Permit Cost | [needs verification — call Sevierville Fire Department at 865-453-9276 or check https://www.seviervilletn.org/467/Short-Term-Rentals] |
| Annual Renewal | Yes — annual STR permit renewal and business license renewal City of Sevierville – Short-Term Rentals |
| Business License Fee | $15 initial, $22 minimum annual renewal City of Sevierville – Business License |
| Late Penalty | 5% per month, up to 25% City of Sevierville – Business License |
| State Sales Tax | 9.75% Sevier County Lodging Tax Page |
| City Lodging Tax | 3% City of Sevierville – Hospitality Tax |
| County Lodging Tax | 3% Tennessee Trustee (Sevier County) |
| Total Effective Lodging Tax | 6% (3% city + 3% county) City of Sevierville – Hospitality Tax |
| Total Tax Burden (all taxes) | 15.75% (state sales + city lodging + county lodging) City of Sevierville – Hospitality Tax |
| Permit Cap | Not codified — no city cap on STR permits City of Sevierville – Short-Term Rentals |
| Transferability | Not codified — no city rule on permit transferability City of Sevierville – Short-Term Rentals |
| Occupancy Cap | Not codified — no city occupancy cap; county cap is 12 Sevier County Short-Term Rental Unit Permit Program Information |
| Parking Requirement | Not codified — no separate city rule on parking THE SEVIERVILLE MUNICIPAL CODE |
| Primary Residence Rule | Not codified — no owner-occupancy requirement THE SEVIERVILLE MUNICIPAL CODE |
| HOA/Condo Override | Not codified — no city override of HOA/condo rules THE SEVIERVILLE MUNICIPAL CODE |
| Inspection Requirement | Yes — annual life-safety inspection by Fire Department City of Sevierville – Short-Term Rentals |
| Local Contact Requirement | Not codified — no separate city rule on local contact THE SEVIERVILLE MUNICIPAL CODE |
| Enforcement Penalties | Not codified — three violations can result in loss of STR rights under state law Tennessee Code Section 13-7-604 |
| Primary Regulator | Sevierville Fire Department (STR permits); City Finance (business license) City of Sevierville – Short-Term Rentals |
| Last Updated | May 22, 2026 |
Regulatory Impact Snapshot
Underwriters should model compliance costs at 15.8% of gross revenue, with median Sevierville, TN STRs earning $50,726 at an average daily rate of $279 and 53% occupancy.
The binding constraint is the high combined tax stack (15.75% of gross), which is among the highest in Tennessee. Annual permit and inspection requirements add administrative friction, but the absence of a license cap or moratorium means supply is not artificially constrained. Run this market in our Airbnb Calculator →
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Frequently Asked Questions
Basics
What is considered a short-term rental in Sevierville?
A short-term rental is any dwelling rented to transients for less than 30 days within city limits City of Sevierville – Hospitality Tax.
Are STRs legal in Sevierville?
Yes, STRs are legal with an annual city permit and business license City of Sevierville – Short-Term Rentals.
Does Sevierville have a cap on STR permits?
No, there is no codified cap on the number of STR permits City of Sevierville – Short-Term Rentals.
Licensing
What permits are required to operate an STR in Sevierville?
You need a city STR Operational Permit and a city business license City of Sevierville – Short-Term Rentals.
How much does the STR permit cost?
[needs verification — call Sevierville Fire Department at 865-453-9276 or check https://www.seviervilletn.org/467/Short-Term-Rentals]
Is the STR permit transferable if I sell my property?
Not codified — no city rule on permit transferability City of Sevierville – Short-Term Rentals.
How often do I need to renew my STR permit?
Annually, with a required life-safety inspection City of Sevierville – Short-Term Rentals.
Is a business license required?
Yes, a city business license is required for all STR operators City of Sevierville – Business License.
Taxes
What is the total lodging tax rate for STRs in Sevierville?
6% (3% city + 3% county) City of Sevierville – Hospitality Tax.
What is the total tax burden including sales tax?
15.75% (9.75% state sales tax + 3% city lodging + 3% county lodging) City of Sevierville – Hospitality Tax.
Do Airbnb and VRBO collect and remit taxes for me?
Yes, for bookings on their platforms, they collect and remit all required taxes Airbnb Help Center.
Do I need to remit taxes for direct bookings?
Yes, you must register and remit state sales and county lodging taxes for direct bookings Sevier County Lodging Tax Page.
Operations
Is there an occupancy cap for STRs in Sevierville?
Not codified — no city occupancy cap; county cap is 12 Sevier County Short-Term Rental Unit Permit Program Information.
Are there parking or local contact requirements?
Not codified — no separate city rule on parking or local contact THE SEVIERVILLE MUNICIPAL CODE.
Is a primary residence required?
No, there is no owner-occupancy or primary residence requirement THE SEVIERVILLE MUNICIPAL CODE.
Are annual inspections required?
Yes, a life-safety inspection by the Fire Department is required annually City of Sevierville – Short-Term Rentals.
Enforcement
How is STR compliance enforced in Sevierville?
Enforcement is compliance-driven, focusing on permits, inspections, and business licensing Haven Vacation Rentals.
What are the penalties for violations?
Not codified — three violations of local law can result in permanent loss of STR rights under state law Tennessee Code Section 13-7-604.
Is there proactive enforcement or platform monitoring?
No evidence of aggressive or proactive enforcement; enforcement is primarily complaint-driven Haven Vacation Rentals.
Have there been recent enforcement actions?
No recent named enforcement actions or specific fine amounts identified in available sources Haven Vacation Rentals.
Permit Process
All short-term rentals in Sevierville require an annual STR Operational Permit, issued jointly by the city planning and fire department. The process includes submitting documentation, paying a fee, and passing a life-safety inspection by the Fire Department City of Sevierville – Short-Term Rentals.
A city business license is also required, with a $15 application fee and a minimum $22 annual renewal tax. The business license must be obtained within 20 days of starting operations City of Sevierville – Business License.
There is no codified cap on the number of STR permits, and transferability rules are not specified in city sources City of Sevierville – Short-Term Rentals.
Zoning
Sevierville does not separately codify which zoning districts permit or prohibit STRs in available sources. There are no city-specific rules on occupancy caps, parking, local contact, density, or primary residence requirements THE SEVIERVILLE MUNICIPAL CODE.
For properties outside city limits, Sevier County rules apply, including a 12-person occupancy cap for the base permit Sevier County Short-Term Rental Unit Permit Program Information.
Taxes and Remittance
STRs in Sevierville are subject to a 3% city lodging tax, a 3% county lodging tax, and a 9.75% state sales tax, totaling a 15.75% tax burden City of Sevierville – Hospitality Tax.
Airbnb and VRBO collect and remit all required taxes for bookings on their platforms. For direct bookings, hosts must register with the state and county to remit taxes Sevier County Lodging Tax Page.
Enforcement and Recent Actions
Enforcement in Sevierville is compliance-driven, focusing on permit, inspection, and business license requirements. There is no evidence of aggressive enforcement or platform monitoring Haven Vacation Rentals.
Three documented violations of local law can result in permanent loss of STR rights under Tennessee state law Tennessee Code Section 13-7-604.
Recent Changes and Pending Legislation
A major regulatory change occurred in 2024, when Sevierville implemented the annual permit and inspection requirement for all STRs within city limits Haven Vacation Rentals.
No evidence of pending, vetoed, or failed STR legislation specific to Sevierville was found in available sources as of May 2026 Haven Vacation Rentals.
Comparable Markets
- Gatlinburg, TN: Consider if you want a more mature STR market with higher permit scrutiny.
- Pigeon Forge, TN: Consider for a similar tourist-driven market but with distinct licensing.
- Wears Valley, TN: Consider for unincorporated county rules and lower density.
- Kodak, TN: Consider for county-level STR regulation outside city limits.
Sources
- City of Sevierville – Short-Term Rentals: https://www.seviervilletn.org/467/Short-Term-Rentals
- City of Sevierville – Business License: https://www.seviervilletn.org/190/Business-License
- City of Sevierville – Hospitality Tax: https://www.seviervilletn.org/189/Hospitality-Tax
- Sevier County Lodging Tax Page: https://www.seviercountytn.gov/government/county_officials/county_trustee/lodging_tax.php
- Tennessee Trustee (Sevier County): https://tennesseetrustee.org/index.php?entity=sevier&state=TN&page=93
- THE SEVIERVILLE MUNICIPAL CODE: https://www.mtas.tennessee.edu/system/files/codes/combined/Sevierville-code.pdf
- Tennessee Code Section 13-7-604: https://law.justia.com/codes/tennessee/title-13/chapter-7/part-6/section-13-7-604/
- Airbnb Help Center: https://www.airbnb.com/help/article/2330
- Haven Vacation Rentals – Sevier County Short-Term Rental Regulations: 2026 Guide: https://havenvacationrentals.com/sevier-county-short-term-rental-regulations-2026-guide/
- RedAwning – Tennessee Airbnb and Short Term Rental Regulations (2025 Update): https://www.redawning.com/pm/post/tennessee-airbnb-and-short-term-rental-regulations-2025-update
- Tennessee Department of Revenue – SUT-48 – Short-Term Rentals – Reporting Requirements: https://revenue.support.tn.gov/hc/en-us/articles/360058190432-SUT-48-Short-Term-Rentals-Reporting-Requirements
This page is research, not legal advice. Consult local counsel before acquiring or operating a short-term rental in City of Sevierville, Sevier County, Tennessee.
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