Do you need a permit to run an Airbnb in Sedona?

Yes. Sedona requires City of Sedona Short-Term Rental Permit, and the fee is $210. 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.

How much does a short-term rental permit cost in Sedona?

The City of Sedona Short-Term Rental Permit fee in Sedona is $210, renewed annual. $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.

How to get a short-term rental permit in Sedona, AZ (2026)

Sedona requires City of Sedona Short-Term Rental Permit — the fee is $210, renewed annual. Here's how to get and keep it.

Permit at a glance

Permit required	Yes
Permit name	City of Sedona Short-Term Rental Permit
Permit fee	$210
Renewal	Annual

Step by step

1
Confirm your property is eligible
Confirm the property's zoning allows short-term rentals. 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.
2
Apply for the City of Sedona Short-Term Rental Permit
Submit the City of Sedona Short-Term Rental Permit application to Sedona and pay the $210 fee. $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.
3
Register for occupancy taxes
Register to collect and remit the applicable lodging/occupancy taxes for Sedona. Some are collected automatically by the booking platform and some you may need to remit yourself.
4
Renew on schedule
The permit renews annual — set a reminder so it never lapses, since operating on an expired permit typically triggers fines.

STR rules change without warning.

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

Keep going

Verified July 10, 2026. Informational only — not legal, tax, or financial advice. Permit requirements and fees change; confirm current requirements with Sedona before applying.

Spot an error? Report an issue