STR Rule Watch

Short-Term Rental Laws in Scottsdale, AZ (2026)

Permit requiredAllowed with permit

Short-term rentals are legal throughout Scottsdale (Arizona state law bars cities from prohibiting them), but every property rented for less than 30 days must hold an annual City of Scottsdale vacation rental license ($250 per property per year), plus a state TPT license and Maricopa County rental registration. There are no owner-occupancy, night-cap, or per-owner limits; the biggest restrictions are strict operational rules β€” $500,000 liability insurance, neighbor notification, sex-offender checks on booking guests, and a ban on commercial/event-center use that was significantly strengthened by Ordinance 4719 effective July 23, 2026. Always confirm current requirements with the city before operating.

βœ“ Last verified August 15, 2026 Β· 8 official sources

Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data

Scottsdale STR rules at a glance

Key short-term rental facts for Scottsdale
Legal statusAllowed with permit
Permit requiredYes
Permit nameVacation Rental License (Short-Term/Vacation Rental License)
Permit fee$250
RenewalAnnual
Owner occupancy requiredNo
Primary residence onlyNo
Total occupancy taxes~13.97% of gross revenue
InsuranceYes - every STR owner must maintain liability insurance of at least $500,000 in the aggregate per rental property, unless every transaction is booked through an online lodging marketplace that provides equal or greater primary liability coverage (SRC Sec. 18-173). Evidence of insurance must be provided to the city within 30 days of obtaining the license; violation carries a minimum $500 fine (reducible to $100 once insured).
Enforcementgov) with a public map of licensed rentals, uses a contracted technology provider to identify listings (about 4,300 STRs identified when licensing began), and takes complaints via ScottsdaleEZ/Code Enforcement (typically addressed within two business days) and the police non-emergency line.
Current rules effective2023-01-08

What will guests pay in taxes on a Scottsdale stay?

Itemized occupancy taxes for Scottsdale, AZ β€” enter your nightly rate to see the real cost breakdown.

Scottsdale occupancy tax calculator

Gross rent$450.00
Arizona state + Maricopa County transient lodging TPT (business code 025) (7.27%)Β· collection varies$32.72
City of Scottsdale privilege (sales) tax on lodging - Hotels (business code 044) (1.7%)Β· collection varies$7.65
City of Scottsdale transient lodging tax - Additional Hotel Tax (business code 144) (5%)Β· collection varies$22.50
Total tax (13.97%)$62.87
Guest pays$512.87

Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.

Permits & licensing

Scottsdale requires Vacation Rental License (Short-Term/Vacation Rental License) to operate a short-term rental β€” the fee is $250, renewed annually.

Non-refundable $250 fee per property with every application and renewal (SRC Sec. 18-152); $250 is the maximum allowed under A.R.S. 9-500.39. An additional $1,000 penalty applies for every 30-day period an owner fails to apply after written notice from the city.

Zoning & location rules

STRs are permitted in all residential zones; A.R.S. 9-500.39 preempts Arizona cities from prohibiting STRs or restricting them based on classification, use or occupancy except as enumerated, so Scottsdale imposes no zone-based bans, night caps, minimum stays, or per-owner unit caps. Occupancy is limited to a single family of one to six adults plus their related dependent children (per the required posted notice referencing Scottsdale Zoning Ordinance Appendix B Sec. 3.100). Non-residential uses are prohibited: retail, restaurant, event center or banquet space, sober living homes, adult-oriented businesses, liquor/pornography sales, housing sex offenders, and special events that would otherwise require a permit. Ordinance 4719 (effective July 23, 2026) adds a definition of 'event center' to strengthen enforcement against weddings, corporate events, and ticketed or promoter-driven parties at STRs.

Taxes

TaxRateWho collects
Arizona state + Maricopa County transient lodging TPT (business code 025)Combined state (5.5%) and Maricopa County rate per the AZDOR TPT rate table effective July 1, 2026. Online lodging marketplaces (Airbnb/Vrbo) are required to collect and remit TPT on platform bookings; hosts deduct that income with code 775 but must still file returns, and hosts remit directly on direct bookings.7.27%varies
City of Scottsdale privilege (sales) tax on lodging - Hotels (business code 044)City TPT rate reduced from 1.75% to 1.70% effective July 1, 2025 following the November 2024 Proposition 490 election. Collected/remitted by the OLM for platform bookings, by the host for direct bookings.1.7%varies
City of Scottsdale transient lodging tax - Additional Hotel Tax (business code 144)5.0% city transient tax on lodging furnished for 29 days or less, in addition to the 1.7% city privilege tax. Total combined lodging tax in Scottsdale is approximately 13.97% (7.27% state/county + 1.70% + 5.00% city).5%varies

Enforcement & penalties

Scottsdale actively enforces: it runs a Short-Term Rental Resource Center (str.scottsdaleaz.gov) with a public map of licensed rentals, uses a contracted technology provider to identify listings (about 4,300 STRs identified when licensing began), and takes complaints via ScottsdaleEZ/Code Enforcement (typically addressed within two business days) and the police non-emergency line. The designated emergency contact must respond in person within one hour when requested by public safety personnel. Licenses are suspended for three verified violations in 12 months, or immediately for a single serious violation (felony by owner/designee, wrongful death/serious injury, housing sex offenders, sober living operation, or knowingly allowing prohibited special events); final suspensions last one year (reducible to six months). Courts may suspend a property's STR use up to 12 months for felony acts causing death or serious injury. The nuisance party ordinance (SRC 18-121) lets police remove non-residents and, since June 2024, hold party promoters liable; minors may not rent STRs. Enforcement activity remains high: in May 2026 police responded to 48 nuisance-related calls at STRs and issued 56 charges/citations.

Operating without a license: civil fine of not less than $1,000 per violation, which the court may not suspend, plus a $1,000 penalty for each 30-day period of failure to apply after written city notice. Verified violations (state-capped schedule): up to $500 or one night's advertised rent (first), up to $1,000 or two nights (second), up to $3,500 or three nights (third and subsequent) within 12 months. Failure to perform the sex-offender background check: mandatory minimum $1,000 fine. Emergency contact failure to respond: minimum $500 ($250 if late beyond one hour). Failure to display the license number in ads, complete neighbor notification, or maintain insurance: minimum $500 each (reducible to $100 upon compliance). Repeated or serious violations trigger license suspension (one year) or revocation, with a one-year bar on reapplying for that property.

⚠️ HOA/condo rules may prohibit STRs regardless of city law.

Getting legal in Scottsdale: the playbook

Generated from this market's verified rules β€” each step traces to the sources at the bottom of this page.

  1. 1

    Verify your zoning

    Location rules apply: S. 39 preempts Arizona cities from prohibiting STRs or restricting them based on classification, use or occupancy except as enumerated, so Scottsdale imposes no zone-based bans, night caps, minimum stays, or per-owner unit caps. Confirm your parcel's zoning with the city before applying β€” the full zoning rules are detailed above.

  2. 2

    Check the covenant layer

    HOA/condo rules may prohibit STRs regardless of city law.

  3. 3

    Apply for the Vacation Rental License (Short-Term/Vacation Rental License)

    Budget $250, renewed annually. Non-refundable $250 fee per property with every application and renewal (SRC Sec. Apply through the city β€” the official application page is linked in the sources below.

  4. 4

    Line up required insurance

    Yes - every STR owner must maintain liability insurance of at least $500,000 in the aggregate per rental property, unless every transaction is booked through an online lodging marketplace that provides equal or greater primary liability coverage (SRC Sec. 18-173). Evidence of insurance must be provided to the city within 30 days of obtaining the license; violation carries a minimum $500 fine (reducible to $100 once insured).

  5. 5

    Set up tax collection & remittance

    Platforms don't collect everything here: Arizona state + Maricopa County transient lodging TPT (business code 025) (7.27%), City of Scottsdale privilege (sales) tax on lodging - Hotels (business code 044) (1.7%), City of Scottsdale transient lodging tax - Additional Hotel Tax (business code 144) (5%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.

  6. 6

    Calendar the renewal before you forget it

    This permit renews annually (budget $250 again). Most cities take weeks to process renewals and don't send reminders β€” our Host plan emails you at 60/30/7 days out.

  7. 7

    Know the cost of getting it wrong

    Operating without a license: civil fine of not less than $1,000 per violation, which the court may not suspend, plus a $1,000 penalty for each 30-day period of failure to apply after written city notice. Verified violations (state-capped schedule): up to $500 or one night's advertised rent (first), up to $1,000 or two nights (second), up to $3,500 or three nights (third and subsequent) within 12 months. Full enforcement details and penalties are covered above.

Recent rule changes in Scottsdale

  1. August 15, 2026material

    Scottsdale bans commercial events at short-term rentals effective July 23, 2026

    Scottsdale City Council unanimously adopted Ordinance No. 4719 in late June 2026, adding an 'event center' definition to city code and prohibiting short-term rentals from operating as commercial event venues β€” including weddings, corporate events, and promoter-driven parties β€” effective July 23, 2026. Ordinary residential gatherings such as family birthdays and holiday dinners remain allowed, but hosts must stop advertising or booking their rentals for commercial events.

    Official source β†’
  2. July 23, 2026material

    Ordinance 4719 bans use of STRs as 'event centers'

    Council unanimously approved an ordinance defining 'event center' to strengthen enforcement against STRs used for weddings, corporate events, ticketed and promoter-driven parties; ordinary residential gatherings are exempt. Violations can lead to citations for attendees and loss of the owner's rental license. Adopted late June 2026; takes effect July 23, 2026.

    Official source β†’
  3. July 1, 2025

    City privilege tax rate on lodging reduced from 1.75% to 1.70%

    Following the November 2024 Proposition 490 election, Scottsdale's transaction privilege (sales) tax rate β€” which applies to the Hotels classification (code 044) alongside the unchanged 5.0% transient tax β€” became 1.70% effective July 1, 2025.

    Official source β†’
  4. June 6, 2024material

    Nuisance party and STR ordinance amendments (Ordinance 4655)

    Unanimously approved May 6, 2024 and effective June 6, 2024: party promoters can be held responsible for nuisance parties, police may remove non-residents once a nuisance party is declared, and minors are barred from renting STRs. The city's licensing guide now cites Ordinance 4655 as the licensing authority.

    Official source β†’
  5. January 8, 2023critical

    Annual STR licensing requirement takes effect (Ordinance 4566)

    Adopted October 25, 2022 under authority of state SB 1168; effective January 8, 2023 every STR must hold an annual $250-per-property city license, carry $500,000 liability insurance, notify neighbors, display the license number in ads, run sex-offender checks on booking guests, and meet health/safety rules, with $1,000 minimum fines for unlicensed operation and a license suspension regime.

    Official source β†’

Frequently asked questions

β€ΊIs Airbnb legal in Scottsdale?

Yes β€” Airbnb and other short-term rentals are legal in Scottsdale, AZ, but you must obtain a Vacation Rental License (Short-Term/Vacation Rental License) before operating. Always confirm current requirements with the city before operating.

β€ΊDo I need a permit for a short-term rental in Scottsdale?

Yes. Scottsdale requires a Vacation Rental License (Short-Term/Vacation Rental License) to operate a short-term rental, which costs $250 and must be renewed annually. Always confirm current requirements with the city before operating.

β€ΊHow much does a Scottsdale short-term rental permit cost?

The Vacation Rental License (Short-Term/Vacation Rental License) costs $250 (annual renewal). Non-refundable $250 fee per property with every application and renewal (SRC Sec. 18-152); $250 is the maximum allowed under A.R.S. 9-500.39. An additional $1,000 penalty applies for every 30-day period an owner fails to apply after written notice from the city.

β€ΊCan I Airbnb a non-primary residence in Scottsdale?

Yes β€” Scottsdale 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.

β€ΊWhat taxes do short-term rental hosts pay in Scottsdale?

Hosts in Scottsdale are subject to: Arizona state + Maricopa County transient lodging TPT (business code 025) (7.27%), City of Scottsdale privilege (sales) tax on lodging - Hotels (business code 044) (1.7%), City of Scottsdale transient lodging tax - Additional Hotel Tax (business code 144) (5%) β€” roughly 13.97% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

β€ΊDo I need insurance to run a short-term rental in Scottsdale?

Yes - every STR owner must maintain liability insurance of at least $500,000 in the aggregate per rental property, unless every transaction is booked through an online lodging marketplace that provides equal or greater primary liability coverage (SRC Sec. 18-173). Evidence of insurance must be provided to the city within 30 days of obtaining the license; violation carries a minimum $500 fine (reducible to $100 once insured). Always confirm current requirements with the city before operating.

β€ΊDoes Airbnb collect taxes automatically in Scottsdale?

No β€” in Scottsdale hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.

β€ΊWhat happens if I operate a short-term rental illegally in Scottsdale?

Operating without a license: civil fine of not less than $1,000 per violation, which the court may not suspend, plus a $1,000 penalty for each 30-day period of failure to apply after written city notice. Verified violations (state-capped schedule): up to $500 or one night's advertised rent (first), up to $1,000 or two nights (second), up to $3,500 or three nights (third and subsequent) within 12 months. See the enforcement section on this page for full details.

β€ΊWhen did Scottsdale's current short-term rental rules take effect?

The current ordinance took effect on January 8, 2023. See the change timeline on this page for amendments since, and the sources section for the official text.

Scottsdale's STR rules changed 3 times recently.

Get an email the moment Scottsdale changes its short-term rental rules β€” plus renewal reminders before your permit expires.

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Related

Sources

This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies β€” verify current requirements with Scottsdale and a qualified professional before operating.

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