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Tax and Fee Details

NOTE: This is subject to change at any time, and may be inaccurate as new legislation is enacted

Hotel Taxes

The amount of these taxes are 6% of the rental rate, plus $2.50 per night.
These taxes are exempt if a guest stays 30 nights or more.
Reference: 5.12.020 Tax imposed—Amount  and  5.12.120 Additional hotel occupancy privilege tax

Sales Tax
The amount of this tax is 9.25% of the rental rate.  (7% state tax plus 2.25% city tax for Nashville)
This tax is exempt if a guest stays 90 nights or more.
Reference: TN.gov: Sales & Use Tax

Business Tax 
This is the cost to renew your business license every year.  
A business license is required in order to collect and remit hotel taxes, and to do business in the state.  It is paid annually, separately to both the city and county, at 0.1875% of revenue or $22, whichever is greater.  If your annual gross sales are $10,000 or less, you also have the option to use a 'Minimal Activity License' instead, which is a flat fee renewal of $15 per year (not based on gross sales).

Landlord Registration 
This is required in order to lease your property in Tennessee for 90 days or more (under a traditional landlord/tenant agreement).  
Hotels/STRPs are exempt from this, if all of your contracts are less than 90 days.
Paid annually, $10 total.

Excise Tax 
Generally, this is required to do business in the state of Tennessee.
Short Term Rental property owners are exempt from Excise taxes if it is not your primary source of income (little effort is required to produce it), and therefore considered passive income.
If you are required to pay Excise Tax, the rate is 6.5% of net earnings, paid annually.
If you are exempt, an annual exemption form will need to be submitted, otherwise you will receive a tax return stating tax is due.