Phoenix Short-Term Rental Regulations
| Permit | ✓ Required — Short-Term Rental Permit ($250) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — 30 consecutive days or fewer per stay |
| 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
| Fee | Amount |
|---|---|
| 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
| Tax | Rate | Authority |
|---|---|---|
| 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. Each individual stay must be 30 consecutive days or fewer per stay.
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
- 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
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:
- 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.
- Obtain liability insurance. $500,000 minimum.
- Apply for Short-Term Rental Permit. Submit application + $250 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Collect and remit taxes. 12.57% on all bookings.
- Renew annually. $250 renewal fee.