Arizona Short-Term Rental Laws by City (2026)
Short-term rental rules in Arizona are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 4 Arizona cities (4 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in Arizona
Arizona is one of the strongest STR-preemption states: since January 1, 2017 (SB 1350), state law bars cities, towns, and counties from prohibiting vacation rentals or short-term rentals, though SB 1168 (2022) lets local governments require a local permit (fee capped at $250), liability insurance, neighbor notification, and impose escalating civil penalties. At the state level, every STR operator must hold an Arizona Transaction Privilege Tax (TPT) license ($12 per location, renewed annually) before offering a rental and must list the license number in every advertisement. Stays under 30 days are taxed at the 5.5% state transient lodging TPT rate plus county and city lodging taxes, and registered online lodging marketplaces like Airbnb and Vrbo must collect and remit on marketplace bookings. City and county rules apply on top of state law — check your local market's page.
Full statewide rules: permits, taxes & enforcement
Arizona is one of the strongest STR-preemption states: since January 1, 2017 (SB 1350), state law bars cities, towns, and counties from prohibiting vacation rentals or short-term rentals, though SB 1168 (2022) lets local governments require a local permit (fee capped at $250), liability insurance, neighbor notification, and impose escalating civil penalties. At the state level, every STR operator must hold an Arizona Transaction Privilege Tax (TPT) license ($12 per location, renewed annually) before offering a rental and must list the license number in every advertisement. Stays under 30 days are taxed at the 5.5% state transient lodging TPT rate plus county and city lodging taxes, and registered online lodging marketplaces like Airbnb and Vrbo must collect and remit on marketplace bookings. City and county rules apply on top of state law — check your local market's page.
Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data
Arizona statewide STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Arizona Transaction Privilege Tax (TPT) License |
| Permit fee | $12 |
| Renewal | Annual |
| Total occupancy taxes | ~5.5% of gross revenue |
| Insurance | No direct statewide mandate, but A.R.S. § 9-500.39 / § 11-269.17 authorize cities, towns, and counties to require STR owners to 'maintain liability insurance appropriate to cover the vacation rental or short-term rental in the aggregate of at least $500,000' or to rent through an online lodging marketplace that provides equal or greater coverage. Whether the requirement applies depends on the local jurisdiction. |
| Enforcement | Enforcement is primarily local, within state-set limits. |
| Current rules effective | 2017-01-01 |
State law & local authority
Strong state preemption (A.R.S. § 9-500.39 for cities/towns; § 11-269.17 for counties, both enacted by SB 1350 in 2016): 'A city or town may not prohibit vacation rentals or short-term rentals' and may not 'restrict the use of or regulate vacation rentals or short-term rentals based on their classification, use or occupancy except as provided in this section.' SB 1168 (2022) carved out limited local authority: localities may require a regulatory permit/license (fee capped at actual cost or $250, whichever is less), require display of the permit or TPT number on advertisements, require neighbor notification before first rental, require an emergency contact, require at least $500,000 aggregate liability insurance (or equivalent platform coverage), enforce generally applicable health/safety, nuisance, and noise rules, and prohibit uses such as housing sex offenders, sober living homes, or adult-oriented businesses. Localities may NOT cap the number of STRs, impose density/spacing limits, or ban them in any residential zone. Following HB 2720 (2024), cities may require owner residency on parcels where an accessory dwelling unit with a certificate of occupancy issued on or after September 14, 2024 is used as an STR. In November 2025 the Arizona Court of Appeals (Oak Creek Hospitality LLC v. City of Sedona) confirmed preemption extends to mobile homes in mobile home parks.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| Arizona Transaction Privilege Tax — transient lodging classification (state)A.R.S. §§ 42-5070 and 42-5010(A)(2): 5.5% state TPT on lodging stays of less than 30 days (business code 025), on total rental amount including cleaning fees. Registered online lodging marketplaces (Airbnb, Vrbo) are required to collect and remit TPT on marketplace bookings under the online lodging marketplace classification (A.R.S. § 42-5076, also 5.5%); hosts deduct that OLM income (deduction code 775) and remit directly on non-marketplace bookings. County excise taxes and city TPT/hotel taxes (business codes 044/144) stack on top and vary by locality. The January 1, 2025 repeal of city TPT on residential rentals applies only to stays of 30+ days — short-term stays remain fully taxable. | 5.5% | varies |
Enforcement & penalties
Enforcement is primarily local, within state-set limits. Cities/counties may suspend a local STR permit for up to 12 months for repeated verified violations, and A.R.S. § 9-500.39 provides for transaction privilege tax license suspension for violating properties. ADOR enforces TPT licensing; operating without required TPT registration can be a class 3 misdemeanor. Separately, all Arizona counties require residential rental properties to be registered with the County Assessor, with fines possible for unregistered rentals. State law (A.R.S. § 42-5042, added by HB 2672 in 2019) requires the TPT license number on every advertisement, including marketplace listings.
For verified violations of local STR rules, state law caps local civil penalties at the greater of $500 or one night's rent (first violation), $1,000 or two nights' rent (second), and $3,500 or three nights' rent (third and subsequent within a 12-month period). Failure to provide required contact information or to obtain a required local permit within 30 days can draw up to $1,000 per month. Advertising without listing the TPT license number: $250 first violation, $1,000 each subsequent violation (A.R.S. § 42-5042).
Statewide sources
- A.R.S. § 9-500.39 — Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penalties; TPT license suspension; definitionsretrieved July 10, 2026
- A.R.S. § 11-269.17 — County limits on regulation of vacation rentals and short-term rentals; state preemptionretrieved July 10, 2026
- A.R.S. § 42-5042 — Online lodging operators; TPT license requirement; advertising; penaltiesretrieved July 10, 2026
- A.R.S. § 42-5010 — Transaction privilege tax rates (transient lodging and online lodging marketplace classifications)retrieved July 10, 2026
- Arizona Department of Revenue — Short-Term Lodgingretrieved July 10, 2026
- Arizona Department of Revenue — Renewing a TPT Licenseretrieved July 10, 2026
- SB 1168 (2022) — Senate Fact Sheet, vacation rentals; short-term rentals; enforcementretrieved July 10, 2026
- Oak Creek Hospitality LLC v. City of Sedona, 1 CA-CV 25-0135 (Ariz. Ct. App. Nov. 26, 2025)retrieved July 10, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Phoenix | Permit required | $250 | August 15, 2026 |
| Scottsdale | Permit required | $250 | August 15, 2026 |
| Sedona | Permit required | $210 | July 10, 2026 |
| Tucson | Permit required | $75 | July 21, 2026 |
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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.