Short-Term Rental Laws in Phoenix, AZ (2026)
Short-term rentals are legal citywide in Phoenix — Arizona state law (A.R.S. 9-500.39) bars cities from banning them — but every STR property must hold a City of Phoenix Short-Term Rental Permit from the Planning & Development Department ($250 non-refundable fee, renewed every 12 months), plus an Arizona TPT license, $500,000 liability insurance, and certified-mail notice to neighbors. There are no night caps, minimum-stay rules, or per-owner unit limits, but nonresidential uses like special events are prohibited, and since April 4, 2026 an owner must live on-site to rent out a newly built accessory dwelling unit (ADU). Always confirm current requirements with the city before operating.
Phoenix STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental Permit (City of Phoenix Planning & Development Department) |
| Permit fee | $250 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~13.07% of gross revenue |
| Insurance | Liability insurance with an aggregate of at least $500,000 must be maintained for the STR property (attested in the notarized city Affidavit & Attestation). State law alternatively allows offering the rental through an online lodging marketplace that provides equal or greater coverage. |
| Enforcement | The Neighborhood Services Department is the lead enforcement agency through the code compliance process; it investigates unpermitted STRs, verifies violations, and issues Notices of Ordinance Violation. Complaints can be filed online (PHX At Your Service) or via blight@phoenix.gov. A permit may be suspended for 12 months after 3 court-adjudicated violations within 12 months, or one conviction for a felony/serious crime within a year. State law also lets ADOR suspend a property's TPT license and lets the city fine owners who never applied for a permit up to $1,000 per month. |
| Current rules effective | 2023-11-06 |
What will guests pay in taxes on a Phoenix stay?
Itemized occupancy taxes for Phoenix, AZ — enter your nightly rate to see the real cost breakdown.
Phoenix occupancy tax calculator
| Gross rent | $450.00 |
| Arizona state + Maricopa County transient lodging TPT (business code 025) (7.27%)· collection varies | $32.72 |
| City of Phoenix hotel TPT (business code 044) (2.8%)· collection varies | $12.60 |
| City of Phoenix transient lodging additional tax (business code 144) (3%)· collection varies | $13.50 |
| Total tax (13.07%) | $58.82 |
| Guest pays | $508.82 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Phoenix requires Short-Term Rental Permit (City of Phoenix Planning & Development Department) to operate a short-term rental — the fee is $250, renewed annual.
Initial and renewal fee of $250 (non-refundable) per permit; applied for through the SHAPE PHX portal. State law caps the fee at the actual cost of issuing the permit or $250, whichever is less. City must issue or deny within 7 days of receiving all application documents.
Zoning & location rules
STRs are allowed in residential zones citywide; A.R.S. 9-500.39 preempts Arizona cities from restricting STRs based on zoning classification, use, or occupancy, so Phoenix regulates through a permit system (City Code ch. 10, art. XVI) rather than zoning. Nonresidential uses of an STR (special events requiring a permit, retail, restaurant, banquet space, etc.) are prohibited by state law. Exception: a property with an accessory dwelling unit (ADU) that received a certificate of occupancy on or after 2024-09-14 may only be used as an STR if the property owner resides on the same property (attestation with proof of address required for applications from 2026-04-04).
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Arizona state + Maricopa County transient lodging TPT (business code 025)Combined state (5.5% transient lodging classification) and Maricopa County excise rate per ADOR rate table effective 2026-01-01. Applies to stays under 30 days. Online lodging marketplaces (Airbnb/Vrbo) must collect and remit for platform bookings (hosts deduct that income with code 775); hosts remit directly for direct bookings. ADOR lists a separate Online Lodging Marketplace classification (code 325) with a 5.72% combined state/county rate for Maricopa for marketplace-remitted bookings. | 7.27% | varies |
| City of Phoenix hotel TPT (business code 044)Raised from 2.3% to 2.8% effective 2025-07-01 by Ordinance G-7369. Platform collects/remits for OLM bookings; host remits for direct bookings. | 2.8% | varies |
| City of Phoenix transient lodging additional tax (business code 144)Additional 3.00% city tax on transient lodging (stays under 30 days), in effect since 2016-01-01. Platform collects/remits for OLM bookings; host remits for direct bookings. Total combined rate on Phoenix STR stays is approximately 13.07%. | 3% | varies |
Enforcement & penalties
The Neighborhood Services Department is the lead enforcement agency through the code compliance process; it investigates unpermitted STRs, verifies violations, and issues Notices of Ordinance Violation. Complaints can be filed online (PHX At Your Service) or via blight@phoenix.gov. A permit may be suspended for 12 months after 3 court-adjudicated violations within 12 months, or one conviction for a felony/serious crime within a year. State law also lets ADOR suspend a property's TPT license and lets the city fine owners who never applied for a permit up to $1,000 per month.
Court-adjudicated violations: first violation minimum $500 or one night's rental fee; second violation minimum $1,000 or two nights' rental fee; third violation minimum $3,500 or three nights' rental fee. Three adjudicated violations in 12 months (or one serious-crime conviction) can trigger a 12-month permit suspension.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Recent rule changes in Phoenix
April 4, 2026material
Owner-occupancy attestation required for STRs on properties with new ADUs
Effective April 4, 2026, if an STR application is for a property with an accessory dwelling unit (ADU) whose certificate of occupancy was issued on or after September 14, 2024, the property owner must submit a notarized attestation that they WILL reside on the same property, with proof of address (utility bill within 60 days or matching AZ ID).
Official source →July 1, 2025material
Phoenix city TPT rate on hotels/STRs increased from 2.3% to 2.8% (Ordinance G-7369)
On March 18, 2025 the Phoenix City Council passed Ordinance G-7369 raising the city privilege tax on multiple classifications, including Hotels (business code 044), from 2.3% to 2.8% effective July 1, 2025. Combined tax on Phoenix STR stays under 30 days rose to approximately 13.07% (7.27% state/county + 2.8% city hotel + 3.0% city transient lodging).
Official source →November 6, 2023material
STR permit requirement replaced registration (Ordinance G-7156)
Following 2022 state enabling law SB 1168, Phoenix City Council approved a September 2023 text amendment converting the 2020 STR registration program into a mandatory permit program effective November 6, 2023: $250 non-refundable initial/renewal fee, notarized attestations (including criminal background), $500,000 liability insurance, certified-mail notice to neighbors and HOAs within 600 feet, safety-equipment documentation, and enhanced civil penalties ($500/$1,000/$3,500 minimums) with 12-month permit suspension for repeat violations.
Official source →
Frequently asked questions
›Is Airbnb legal in Phoenix?
Yes — Airbnb and other short-term rentals are legal in Phoenix, AZ, but you must obtain a Short-Term Rental Permit (City of Phoenix Planning & Development Department) before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Phoenix?
Yes. Phoenix requires a Short-Term Rental Permit (City of Phoenix Planning & Development Department) to operate a short-term rental, which costs $250 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Phoenix short-term rental permit cost?
The Short-Term Rental Permit (City of Phoenix Planning & Development Department) costs $250 (annual renewal). Initial and renewal fee of $250 (non-refundable) per permit; applied for through the SHAPE PHX portal. State law caps the fee at the actual cost of issuing the permit or $250, whichever is less. City must issue or deny within 7 days of receiving all application documents.
›Can I Airbnb a non-primary residence in Phoenix?
Yes — Phoenix does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Phoenix?
Hosts in Phoenix are subject to: Arizona state + Maricopa County transient lodging TPT (business code 025) (7.27%), City of Phoenix hotel TPT (business code 044) (2.8%), City of Phoenix transient lodging additional tax (business code 144) (3%) — roughly 13.07% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Phoenix?
Court-adjudicated violations: first violation minimum $500 or one night's rental fee; second violation minimum $1,000 or two nights' rental fee; third violation minimum $3,500 or three nights' rental fee. Three adjudicated violations in 12 months (or one serious-crime conviction) can trigger a 12-month permit suspension. The Neighborhood Services Department is the lead enforcement agency through the code compliance process; it investigates unpermitted STRs, verifies violations, and issues Notices of Ordinance Violation. Complaints can be filed online (PHX At Your Service) or via blight@phoenix.gov. A permit may be suspended for 12 months after 3 court-adjudicated violations within 12 months, or one conviction for a felony/serious crime within a year. State law also lets ADOR suspend a property's TPT license and lets the city fine owners who never applied for a permit up to $1,000 per month.
Phoenix's STR rules changed 2 times recently.
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Related
Nearby covered cities
- Scottsdale, AZPermit required
- Sedona, AZPermit required
- Palm Springs, CARestricted
- San Diego, CAPermit required
- Los Angeles, CAPrimary residence only
Sources
- Short-Term Rental Registry — City of Phoenix Planning & Development Departmentretrieved July 9, 2026
- City of Phoenix STR Affidavit and Attestation — Acknowledgement of Short-Term Rental Permit Requirements (Rev. 4/2026)retrieved July 9, 2026
- A.R.S. § 9-500.39 — Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penaltiesretrieved July 9, 2026
- Arizona Department of Revenue — Short-Term Lodging (TPT)retrieved July 9, 2026
- Arizona Department of Revenue — Phoenix Transaction Privilege Tax & Use Tax Rates (Model City Tax Code city profile)retrieved July 9, 2026
- Arizona Department of Revenue — TPT and Other Tax Rate Tables, effective January 1, 2026retrieved July 9, 2026
- Arizona Department of Revenue — TPT Update July 2025 (Phoenix Ordinance G-7369 rate increase)retrieved July 9, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Phoenix and a qualified professional before operating.