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.
Phoenix ✓ Required 12.57% No limit No
Scottsdale ✓ Required 12.25% 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 12.25% to 12.57%.

Other States

California 4 cities Colorado 1 city District of Columbia 1 city Florida 4 cities Georgia 2 cities Hawaii 2 cities Illinois 1 city Louisiana 1 city Massachusetts 1 city Nevada 1 city New York 1 city North Carolina 1 city Oregon 1 city South Carolina 1 city Tennessee 2 cities Texas 3 cities Washington 1 city