The taxes, line by line
| Tax or fee | Rate | Applies to / notes | Source |
|---|---|---|---|
| Metro hotel occupancy tax | 7% | Rent for stays under 30 days (rate since July 1, 2023) | [1] |
| Metro nightly fee | $2.50 per night | Each nightly rental | [1] |
| Tennessee state sales tax | 7% | Rentals under 90 days; the sales price includes required cleaning and booking fees | [3] |
| Local sales tax | 1.5%–2.75% | Varies by county or city; look up your exact rate with the Tennessee Department of Revenue | [3] |
Who collects it (and what's still on you)
- Occupancy tax: Tennessee requires short-term rental marketplaces to collect and remit local occupancy taxes for units rented through them (effective January 1, 2021), and remit them to the Department of Revenue.[3]
- Sales tax: the property owner, marketplace facilitator or property manager must collect and remit it on the full sales price.[3]
- Direct bookings: you collect and remit yourself. Metro hotel returns are due by the 20th of each month.[2]
- Permit: Metro requires a Short Term Rental Property permit; the permit fee is $313, renewable yearly with proof of insurance and occupancy-tax payment.[4]
A real booking, worked out
Say you list at $200 a night for 3 nights with a $100 cleaning fee: a $700 subtotal. Airbnb's fee and the lodging taxes are separate things. Airbnb's single host fee is 15.5% of your nightly price and fees, and taxes aren't part of that fee base, so the guest pays taxes on top while your payout is set by the platform fee.
| Booking line | Airbnb (15.5% host fee) | Vrbo (12% from Oct 29, 2026) |
|---|---|---|
| Your subtotal (rent + cleaning) | $700.00 | $700.00 |
| Platform host fee | −$108.50 | −$84.00 |
| Your payout | $591.50 | $616.00 |
| Lodging taxes on top for the guest (if the full $700 is taxable) | $105.50 | $105.50 |
Taxes use the rates in the table above, plus your local sales tax rate (1.5%–2.75%), not included here. What counts as taxable (cleaning fees, platform service fees) is set by each agency, so treat this as an estimate. Run your own numbers in the Airbnb fee calculator or the Vrbo 12% calculator.
Holiday-season host prep for Nashville
Group trips and holiday weekends mean more turnovers and more glitter in the couch. A standardized cleaning kit keeps each clean fast. Our Airbnb cleaning supplies checklist lists what to buy, how many and when to skip (that page contains affiliate links). Getting ready for cold snaps? See the winter-ready rental checklist.