Short-Term Rental Regulations in Arizona

State Overview
Arizona preempts local STR regulation via SB 1168 (2022). Cities may not prohibit vacation rentals or restrict based on classification/use. Cities may regulate health/safety, require permits (fee ≤$250), require $500K insurance, require neighbor notification, and impose penalties. The state imposes a 5.5% Transaction Privilege Tax (Transient Lodging) in addition to any local taxes.

Cities in Arizona

City Permit Tax Rate Day Limit Primary Res.
Flagstaff ✓ Required ~11.76% No limit No
Lake Havasu City ✓ Required 10.5% No annual cap · per-stay limit No
Page ✓ Required 16.9% No limit No
Peoria ✓ Required 12.87% No limit No
Phoenix ✓ Required 13.07% No limit No
Prescott ✓ Required 12.275% No limit No
Scottsdale ✓ Required 13.97% No limit No
Sedona ✓ Required 13.325%–13.9% No annual cap · per-stay limit No
Tucson ✓ Required 16.05% No limit No

Arizona's STR Landscape

Arizona preempts local STR regulation via SB 1168 (2022). Cities may not prohibit vacation rentals or restrict based on classification/use. Cities may regulate health/safety, require permits (fee ≤$250), require $500K insurance, require neighbor notification, and impose penalties. The state imposes a 5.5% Transaction Privilege Tax (Transient Lodging) in addition to local taxes.

Regulation varies significantly across cities. Tax rates vary from 10.5% to 16.9%.

Popular Short-Term Rental Markets

High-demand markets in other states — compare their permit, tax, and day-limit rules:

Other States

Alabama 7 cities Alaska 1 city Arkansas 3 cities California 30 cities Colorado 12 cities Connecticut 1 city Delaware 2 cities District of Columbia 1 city Florida 24 cities Georgia 8 cities Hawaii 4 cities Idaho 3 cities Illinois 7 cities Indiana 4 cities Kentucky 3 cities Louisiana 2 cities Maine 4 cities Maryland 4 cities Massachusetts 6 cities Michigan 8 cities Minnesota 3 cities Mississippi 3 cities Missouri 5 cities Montana 3 cities Nevada 1 city New Hampshire 2 cities New Jersey 5 cities New Mexico 3 cities New York 12 cities North Carolina 7 cities Ohio 7 cities Oklahoma 3 cities Oregon 3 cities Pennsylvania 9 cities Rhode Island 2 cities South Carolina 9 cities South Dakota 2 cities Tennessee 7 cities Texas 15 cities Utah 7 cities Vermont 2 cities Virginia 6 cities Washington 5 cities West Virginia 2 cities Wisconsin 6 cities Wyoming 1 city