Gallatin, Tennessee

Short-term rentals are legal in Gallatin and require a Short-Term Rental Permit from the City of Gallatin Planning Department. A caretaker or local contact is required. Occupancy is capped at no more than two guests per bedroom and a maximum of 12 persons total per property. There is no owner-occupancy or primary-residence requirement under current rules.

Lodging tax: Sumner County levies a 5% occupancy tax on rentals under 30 days, remitted monthly to the county clerk. The city also imposes a hotel privilege and occupancy tax under Tennessee law. The combined city plus county rate is subject to a state cap of 8% under 2025 Public Chapter 372. Operators earning $3,000 or more annually also need a business license. The Sumner County Clerk actively monitors short-term rental platforms using listings, photos, and public tools to identify non-compliant operators.

The most material pending development is Gallatin’s first comprehensive zoning overhaul since the late 1990s. A draft of approximately 600 pages was submitted to the Planning Commission in April 2026. For STRs, the proposed changes include annual Fire Marshal inspections, a $1 million liability insurance requirement, and a 24/7 local contact who must respond within one hour. The critical investor risk: under the draft proposal, existing STRs would retain grandfathered status only until the property is sold or transferred. A buyer purchasing a currently operating STR would forfeit grandfathering and face the new requirements. The ordinance had not been finalized or adopted as of mid-2026; investors should track this closely.