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Gatlinburg is one of the most STR-friendly municipalities in the country — STR is permitted by right in nearly all residential and commercial zones. The Tourist Residency Permit is the primary regulatory instrument. The city's economy is built almost entirely on STR + tourism; ordinances reflect that posture and the 2018 TN STR Unit Act prevents the city from materially restricting STR use anyway.
Operators must hold a short-term rental permit before listing. See the official permit portal.
Gatlinburg charges a base $200 Tourist Residency Permit fee for up to 2 bedrooms + $75 per additional bedroom. Annual renewal. Application requires proof of property insurance, designated 24/7 local contact, life-safety self-certification (smoke + CO + fire extinguisher + posted occupancy), and parking plan. The Gatlinburg Tourism Department + Codes Department jointly enforce. Operating without a permit: $500+ per violation + back-tax assessment. Sevier County's STR registry cross-references with the Gatlinburg city registry.
Combined short-term lodging tax in Gatlinburg is approximately 12.250% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).
Tennessee State sales tax 7% + Sevier County local option sales tax 2.75% + Gatlinburg city tax 2.5% — combined ~12.25% on transient lodging (note: Sevier County also has separate Tourism Development Tax assessments)
Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.
STR regulations vary by jurisdiction. Compare Gatlinburg against nearby markets.