Short-Term Rental Laws in Memphis, Tennessee

Memphis places almost no restrictions on investor-owned STRs — among the most permissive major-city frameworks in the US. STR is permitted by right in all residential zones, subject to the STR permit + life-safety standards + insurance + Shelby County registration. The 2018 TN STR Unit Act prevents Memphis from imposing zoning-class STR bans even if the City Council wanted to. The Memphis posture reflects an emerging-tourism economy (Beale Street, music heritage, Graceland) that benefits from broad STR supply.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Memphis $50/year STR permit covers most residential zones. Application requires proof of insurance ($300K liability minimum), designated local responsible-party contact, life-safety inspection (smoke + CO detectors, posted occupancy, fire extinguisher), parking plan, and compliance with municipal noise ordinance. Annual renewal. Operating without a permit: administrative fines + back-tax assessment + Shelby County registration enforcement.

Combined short-term lodging tax in Memphis is approximately 15.950% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Tennessee State sales tax 7% + Shelby County local option 2.25% + Memphis city tax + hotel-motel tax 5% + tourism improvement assessments — combined ~15.95% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.