Tucson Short-Term Rental Regulations
| Permit | ✓ Required — Business License ($95) |
| Primary Residence | Not required |
| Annual Day Limit | No limit |
| Tax Rate | 16.05% |
| Max Penalty | $3,500 per violation |
| Insurance | $500,000 liability required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Business License
| Fee | Amount |
|---|---|
| Initial cost | $95 |
| Renewal | $70 / Annual |
This permit type does not require primary residence.
Application Process
Apply for a City of Tucson Business License through the Finance Department. Contact [email protected] or (520) 791-4566.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Arizona Transaction Privilege Tax (TPT) - Transient Lodging | 5.5% | Arizona Department of Revenue |
| Pima County Excise Tax - Transient Lodging | 0.55% | Pima County |
| Tucson Occupational License Tax - Short-Term Rental (Non-Hotel) | 10% | City of Tucson (Ordinance 12215, effective March 1, 2026) |
Combined rate: 16.05% of gross rental income.
Rental Limits
Tucson 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
- Smoke detectors in all sleeping areas
- Clear egress points and emergency exits
- Structural soundness and functional utilities
Penalties for Non-Compliance
1st violation: greater of one night's rent or $500; 2nd violation within 12 months: greater of two nights' rent or $1,000; 3rd+ violations within 12 months: greater of three nights' rent or $3,500
Compliance Checklist
Follow these steps to legally operate a short-term rental in Tucson:
- Meet safety requirements. Smoke detectors in all sleeping areas. Clear egress points and emergency exits. Structural soundness and functional utilities.
- Obtain liability insurance. $500,000 minimum.
- Apply for Business License. Submit application + $95 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Collect and remit taxes. 16.05% on all bookings.
- Renew annually. $70 renewal fee.