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
Phoenix ✓ Required 12.57% No limit No
Prescott ✓ Required 12.275% No limit No
Scottsdale ✓ Required 12.25% 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 2 cities Alaska 1 city Arkansas 3 cities California 28 cities Colorado 12 cities Connecticut 1 city Delaware 2 cities District of Columbia 1 city Florida 24 cities Georgia 6 cities Hawaii 4 cities Idaho 3 cities Illinois 2 cities Indiana 2 cities Kentucky 2 cities Louisiana 1 city Maine 4 cities Maryland 3 cities Massachusetts 6 cities Michigan 4 cities Minnesota 1 city Mississippi 2 cities Missouri 4 cities Montana 3 cities Nevada 1 city New Hampshire 2 cities New Jersey 5 cities New Mexico 3 cities New York 5 cities North Carolina 7 cities Ohio 3 cities Oklahoma 3 cities Oregon 3 cities Pennsylvania 4 cities Rhode Island 2 cities South Carolina 7 cities South Dakota 2 cities Tennessee 7 cities Texas 13 cities Utah 7 cities Vermont 2 cities Virginia 6 cities Washington 4 cities West Virginia 1 city Wisconsin 4 cities Wyoming 1 city