Phoenix Short-Term Rental Regulations

Last verified: 2026-03-26
TL;DR
Phoenix requires Short-Term Rental Permit ($250) with no primary-residence requirement. Combined tax rate is 12.57%. No annual day limit.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Short-Term Rental Permit ($250)
Primary Residence Not required
Annual Day Limit No limit
Tax Rate 12.57%
Max Penalty $3,500 per violation
Insurance $500,000 liability required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental Permit

FeeAmount
Initial cost$250
Renewal$250 / 1 year

This permit type does not require primary residence.

Application Process

Apply online via SHAPE PHX portal. City must approve or deny within 7 business days.

Tax Obligations

TaxRateAuthority
Arizona Transaction Privilege Tax (TPT) 5.5% Arizona Department of Revenue
Phoenix City Tax - Transient Lodging 5.3% City of Phoenix
Maricopa County Excise Tax 1.77% Maricopa County

Combined rate: 12.57% of gross rental income.

Rental Limits

Phoenix does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Operators must maintain at least $500,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

Penalties for Non-Compliance

1st violation: up to $500; 2nd: up to $1,000; 3rd+: up to $3,500; operating without permit: $1,000/month

Platform Requirements

Platforms must provide equal or greater primary liability insurance coverage ($500,000+) as alternative to owner-held insurance.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Phoenix:

  1. Meet safety requirements. Working smoke and carbon monoxide detection system (NFPA 72). Portable fire extinguisher in kitchen and areas with open fire source. Display permit within 10 feet of primary entrance.
  2. Obtain liability insurance. $500,000 minimum.
  3. Apply for Short-Term Rental Permit. Submit application + $250 fee.
  4. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
  5. Collect and remit taxes. 12.57% on all bookings.
  6. Renew annually. $250 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Phoenix?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Phoenix requires a Short-Term Rental Permit.
How much does a short-term rental permit cost in Phoenix?
A Short-Term Rental Permit in Phoenix costs $250 per year.
Does Phoenix require a short-term rental to be your primary residence?
No. Phoenix allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
How many days a year can you short-term rent in Phoenix?
Phoenix does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Phoenix?
Short-term rental stays in Phoenix are subject to a combined 12.57% in lodging taxes. This combines 5.5% Arizona Transaction Privilege Tax (TPT) + 5.3% Phoenix City Tax - Transient Lodging + 1.77% Maricopa County Excise Tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Phoenix?
Operating without a permit can cost up to $3,500.

Official Sources

  1. Short-Term Rental Registry - City of Phoenix
  2. Short-Term Lodging - Arizona Department of Revenue
  3. Phoenix City Code Chapter 10 Article XI - Short-Term Rentals (Ordinance G-7156)