Arizona Short-Term Rental Rules (2026): Permits & Taxes

Quick Answer: Arizona Short-Term Rental Regulations at a Glance

Arizona's short-term rental (STR) framework combines state preemption with local regulatory authority.

State law (ARS § 9-500.39) prohibits cities or towns from enacting ordinances that outright ban STRs. This preemption has been in effect since 2016. Cities retain authority to regulate STRs for public health, safety, and welfare. They can address issues like noise, parking, trash, occupancy, and nuisance.

All STR operators must register with the Arizona Department of Revenue (ADOR) to collect Transaction Privilege Tax (TPT). TPT applies at state, county, and city levels, with rates stacking. Platforms like Airbnb and Vrbo often collect and remit TPT, but the property owner remains legally obligated to register.

Most major Arizona cities (e.g., Phoenix, Scottsdale, Sedona, Flagstaff) require local STR permits. They also require a 24/7 emergency contact and compliance with operational rules. Non-compliance can lead to fines, permit revocation, or referral to the state.

Market Context: Arizona's Short-Term Rental Landscape

Arizona's robust tourism sector and growing population create a dynamic environment for short-term rentals. As of 2022, the state's population reached 7,172,282, with a median household income of $72,581. The housing market includes 3,097,768 total housing units.