Short-Term Rental Laws in Sedona, AZ (2026)
Short-term rentals are legal throughout Sedona because Arizona state law (A.R.S. 9-500.39) bars cities from prohibiting them, but every rental unit must have an annual City of Sedona short-term rental permit ($210 per unit, plus new late fees since Jan 1, 2026) and a state TPT license before it is advertised or rented. The biggest restrictions are operational: each advertised unit (including casitas/ADUs) needs its own permit, special events like weddings and retreats are banned at STRs, and owners must carry $500,000 liability insurance, notify neighbors, and run sex-offender background checks on guests. Always confirm current requirements with the city before operating.
Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data
Sedona STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | City of Sedona Short-Term Rental Permit |
| Permit fee | $210 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~20.23% of gross revenue |
| Insurance | Liability insurance of at least $500,000 in the aggregate for each rental unit. State law (A.R.S. 9-500.39(B)(8)) allows the alternative of advertising and offering the rental through an online lodging marketplace that provides equal or greater coverage. |
| Enforcement | Sedona runs a dedicated STR program with a Short-term Rental Program Supervisor and a dedicated STR Code Enforcement Officer. |
| Current rules effective | 2023-02-15 |
What will guests pay in taxes on a Sedona stay?
Itemized occupancy taxes for Sedona, AZ — enter your nightly rate to see the real cost breakdown.
Sedona occupancy tax calculator
| Gross rent | $450.00 |
| Arizona state + county transaction privilege tax on transient lodging (Yavapai County portion of Sedona) (6.325%)· collection varies | $28.46 |
| Arizona state + county transaction privilege tax on transient lodging (Coconino County portion of Sedona) (6.9%)· collection varies | $31.05 |
| City of Sedona hotel tax (city transient lodging TPT) (3.5%)· collection varies | $15.75 |
| City of Sedona bed tax (transient occupancy) (3.5%)· collection varies | $15.75 |
| Total tax (20.23%) | $91.01 |
| Guest pays | $541.01 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Sedona requires City of Sedona Short-Term Rental Permit to operate a short-term rental — the fee is $210, renewed annually.
$210 annual, non-refundable, non-transferable, per rental unit; each advertised unit (main house, casita, ADU) needs its own permit. Fee was $200 until it rose to $210 in January 2025 (secondary sources cite Jan 10, 2025). Effective Jan 1, 2026, a one-time late fee is added to late renewals: $50 if renewed 2-90 days late, $100 if 90+ days late (capped at $100). Arizona law caps STR permit fees at the actual cost of issuance or $250, whichever is less. A state TPT license is required before applying.
Zoning & location rules
No zoning-based restrictions are possible: Arizona law preempts cities from prohibiting STRs or restricting them by classification, use or occupancy, and the city FAQ confirms no Arizona city may cap the number of STRs. Eligible properties: single-family houses, 1-4 unit dwellings, condos/townhouses/co-ops, individual rooms, and guest houses/casitas. Not eligible: apartment complexes of 5+ units, RVs/travel trailers, tents, and structures not approved as dwelling units. One owner-residency exception: an ADU issued a certificate of occupancy on or after Sept 14, 2024 cannot be an STR unless the owner's primary residence is the primary structure on the same property (pre-existing guest quarters are grandfathered). Commercial lodging (hotels, B&Bs) and commercially zoned properties are outside the STR permit program (business license applies instead). HOA rules may separately prohibit rentals under 30 days; the city does not enforce HOA rules.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Arizona state + county transaction privilege tax on transient lodging (Yavapai County portion of Sedona)City FAQ: 'Yavapai County: 6.325% + 3.5% bed tax + 3.5% hotel tax to City of Sedona = 13.325%' total. Since Jan 1, 2019 Arizona requires online lodging marketplaces (Airbnb, Vrbo) to register and remit TPT on all online lodging transactions; hosts remit directly on direct bookings and must still hold a TPT license and file returns (deduction code 775 for OLM-collected receipts). | 6.325% | varies |
| Arizona state + county transaction privilege tax on transient lodging (Coconino County portion of Sedona)City FAQ: 'Coconino County: 6.9% + 3.5% bed tax + 3.5% hotel tax to City of Sedona = 13.90%' total. Platform (OLM) collects and remits for marketplace bookings; host remits for direct bookings. | 6.9% | varies |
| City of Sedona hotel tax (city transient lodging TPT)Part of the combined 13.325% (Yavapai side) / 13.90% (Coconino side) rate quoted by the city; collected through the state TPT system, so OLMs remit it for marketplace bookings. | 3.5% | varies |
| City of Sedona bed tax (transient occupancy)Part of the combined city rate per the city FAQ. Owners must 'collect and pay sales tax and transient occupancy tax (bed tax) in a timely manner or ensure that a third-party vendor does this on your behalf.' | 3.5% | varies |
Enforcement & penalties
Sedona runs a dedicated STR program with a Short-term Rental Program Supervisor and a dedicated STR Code Enforcement Officer. A 24/7 complaint hotline (928-203-5110) and an online incident report form feed daily reports to staff; code violations are referred to Code Enforcement and after-10pm noise complaints to Sedona PD. Listings advertising under a 30-day minimum without a permit are notified that a permit is required. Since Oct 23, 2025 applications/renewals with missing or invalid information are denied, and since Jan 1, 2026 late renewals incur automatic late fees. Contact info for owner/designee/emergency contact is public record.
Causing or allowing any violation of the STR chapter is punishable as a misdemeanor, constitutes a civil offense, and carries penalties from $500 up to $3,500 (SCC 5.25.120). Permits can be suspended for up to 12 months after three verified violations in 12 months, or one serious violation (felony at the property, serious injury/wrongful death, housing a sex offender, or knowingly hosting a special event); suspension requires ceasing all advertising and operation, fees are non-refundable, and an owner whose permit was denied or revoked must wait one year to reapply. Special-event violations can lead to revocation for one year.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Sedona: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Verify your zoning
Location rules apply: No zoning-based restrictions are possible: Arizona law preempts cities from prohibiting STRs or restricting them by classification, use or occupancy, and the city FAQ confirms no Arizona city may cap the number of STRs. Eligible properties: single-family houses, 1-4 unit dwellings, condos/townhouses/co-ops, individual rooms, and guest houses/casitas. Confirm your parcel's zoning with the city before applying — the full zoning rules are detailed above.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the City of Sedona Short-Term Rental Permit
Budget $210, renewed annually. $210 annual, non-refundable, non-transferable, per rental unit; each advertised unit (main house, casita, ADU) needs its own permit. Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
Liability insurance of at least $500,000 in the aggregate for each rental unit. State law (A.R.S. 9-500.39(B)(8)) allows the alternative of advertising and offering the rental through an online lodging marketplace that provides equal or greater coverage.
- 5
Set up tax collection & remittance
Platforms don't collect everything here: Arizona state + county transaction privilege tax on transient lodging (Yavapai County portion of Sedona) (6.325%), Arizona state + county transaction privilege tax on transient lodging (Coconino County portion of Sedona) (6.9%), City of Sedona hotel tax (city transient lodging TPT) (3.5%), City of Sedona bed tax (transient occupancy) (3.5%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 6
Calendar the renewal before you forget it
This permit renews annually (budget $210 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 7
Know the cost of getting it wrong
120). Permits can be suspended for up to 12 months after three verified violations in 12 months, or one serious violation (felony at the property, serious injury/wrongful death, housing a sex offender, or knowingly hosting a special event); suspension requires ceasing all advertising and operation, fees are non-refundable, and an owner whose permit was denied or revoked must wait one year to reapply. Full enforcement details and penalties are covered above.
Recent rule changes in Sedona
January 1, 2026material
Late fees for late permit renewals take effect
A one-time late fee is automatically added to any STR permit renewed late: $50 if 2-90 days late, $100 if more than 90 days late, capped at $100. Late renewals remain subject to citations and penalties for code violations.
Official source →October 23, 2025
Incomplete permit applications and renewals now denied
Effective Oct 23, 2025, all STR permit applications or renewals submitted with missing or invalid information are denied via GovOS, with instructions for correction; renewals that expire after a denial notice are subject to late fees, citations and penalties.
Official source →October 14, 2025material
Council approves code amendments adding late-fee structure and expanded suspension authority
Sedona City Council unanimously approved amendments to SCC Ch. 5.25 establishing the one-time renewal late-fee structure, adding authority to suspend permits when land development or building code violations are found, and clarifying owner attestation language. Staff reported nearly a third of 2025 renewals were at least a week late.
Official source →March 25, 2025material
Ordinance 2025-02 amends STR code: per-unit permits, special-event advertising ban, new-ADU restriction
Council codified the requirement of a separate permit for each rental unit, provided that renewed permits run one year from the prior permit's expiration, required sellers to take down STR ads at time of sale, extended the special-events ban to advertising, and barred ADUs issued a certificate of occupancy on/after Sept 14, 2024 from STR use unless the owner's primary residence is the main structure (earlier guest quarters grandfathered).
Official source →January 10, 2025
Annual permit fee increased from $200 to $210
The annual STR permit fee rose by $10 to $210 per unit; the current official Property Owner Responsibilities page confirms the $210 fee. (Exact effective date reported by secondary sources.)
Official source →December 1, 2024material
Each advertised unit must have its own permit
City states: 'As of December 2024, each advertised unit must have its own permit. Example: main house + casita = 2 units. Each unit must be permitted.' Previously one permit could cover a property.
Official source →February 15, 2023critical
STR permit requirement took effect citywide
Following adoption of Ordinance 2022-11 (Nov 22, 2022) under authority of Arizona SB 1168, Sedona's annual STR permit program launched Jan 20, 2023, and all operating short-term rentals were required to hold a permit no later than Feb 15, 2023, replacing the prior emergency-contact registration.
Official source →
Frequently asked questions
›Is Airbnb legal in Sedona?
Yes — Airbnb and other short-term rentals are legal in Sedona, AZ, but you must obtain a City of Sedona Short-Term Rental Permit before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Sedona?
Yes. Sedona requires a City of Sedona Short-Term Rental Permit to operate a short-term rental, which costs $210 and must be renewed annually. Always confirm current requirements with the city before operating.
›How much does a Sedona short-term rental permit cost?
The City of Sedona Short-Term Rental Permit costs $210 (annual renewal). $210 annual, non-refundable, non-transferable, per rental unit; each advertised unit (main house, casita, ADU) needs its own permit. Fee was $200 until it rose to $210 in January 2025 (secondary sources cite Jan 10, 2025). Effective Jan 1, 2026, a one-time late fee is added to late renewals: $50 if renewed 2-90 days late, $100 if 90+ days late (capped at $100). Arizona law caps STR permit fees at the actual cost of issuance or $250, whichever is less. A state TPT license is required before applying.
›Can I Airbnb a non-primary residence in Sedona?
Yes — Sedona 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 Sedona?
Hosts in Sedona are subject to: Arizona state + county transaction privilege tax on transient lodging (Yavapai County portion of Sedona) (6.325%), Arizona state + county transaction privilege tax on transient lodging (Coconino County portion of Sedona) (6.9%), City of Sedona hotel tax (city transient lodging TPT) (3.5%), City of Sedona bed tax (transient occupancy) (3.5%) — roughly 20.23% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›Do I need insurance to run a short-term rental in Sedona?
Liability insurance of at least $500,000 in the aggregate for each rental unit. State law (A.R.S. 9-500.39(B)(8)) allows the alternative of advertising and offering the rental through an online lodging marketplace that provides equal or greater coverage. Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Sedona?
No — in Sedona hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.
›What happens if I operate a short-term rental illegally in Sedona?
120). Permits can be suspended for up to 12 months after three verified violations in 12 months, or one serious violation (felony at the property, serious injury/wrongful death, housing a sex offender, or knowingly hosting a special event); suspension requires ceasing all advertising and operation, fees are non-refundable, and an owner whose permit was denied or revoked must wait one year to reapply. See the enforcement section on this page for full details.
›When did Sedona's current short-term rental rules take effect?
The current ordinance took effect on February 15, 2023. See the change timeline on this page for amendments since, and the sources section for the official text.
Sedona's STR rules changed 6 times recently.
Get an email the moment Sedona changes its short-term rental rules — plus renewal reminders before your permit expires.
Watch Sedona for changes →Free monthly digest · same-day alerts from $5/mo · cancel anytime
Related
Nearby covered markets
- Scottsdale, AZPermit required
- Phoenix, AZPermit required
- St. George, UTRestricted
- Tucson, AZPermit required
- Las Vegas, NVPrimary residence only
More resources
- How to get a short-term rental permit in Sedona
- Sedona short-term rental taxes explained
- Can I Airbnb in Sedona?
- All Arizona STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Sedona ranks among highest str occupancy tax cities
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- City of Sedona - Short-Term Rentals (program page)retrieved July 9, 2026
- City of Sedona - Property Owner Responsibilities (Short-term Rentals)retrieved July 9, 2026
- City of Sedona - Short-Term Rentals Frequently Asked Questionsretrieved July 9, 2026
- Sedona City Code Ch. 5.25 Short-Term Rental Regulationretrieved July 9, 2026
- A.R.S. 9-500.39 - Limits on regulation of vacation rentals and short-term rentals; state preemptionretrieved July 9, 2026
- Arizona Department of Revenue - Online Lodging Marketplaceretrieved July 9, 2026
- Sedona Red Rock News - Sedona City Council approves new amendments to short-term rental ordinance (Apr 5, 2025)retrieved July 9, 2026
- Signals AZ - City of Sedona Short-Term Rental Permit (program launch, Jan 2023)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 Sedona and a qualified professional before operating.