Sedona Short-Term Rental Regulations

Last verified: 2026-04-06
TL;DR
Sedona requires Annual Short-Term Rental Permit ($210). Combined tax rate is 13.325%-13.9%. No annual day limit, but each stay must be less than 30 days.
Key Requirements at a Glance
Permit ✓ Required — Annual Short-Term Rental Permit ($210)
Primary Residence Not required
Annual Day Limit No limit — less than 30 days
Tax Rate 13.325%-13.9%
Max Penalty Not publicly specified
Insurance ✓ Required

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

Permit & Licensing

Annual Short-Term Rental Permit

FeeAmount
Initial cost$210
Renewal$210 / annual

This permit type does not require primary residence.

Tax Obligations

TaxRateAuthority
Arizona Transaction Privilege Tax (TPT) — State 5.6% Arizona Department of Revenue
City of Sedona Bed Tax 3.5% City of Sedona
City of Sedona Hotel Tax 3.5% City of Sedona
County TPT (Yavapai: 0.725% / Coconino: 1.3%) 0.725%–1.3% Yavapai / Coconino County

Combined rate: 13.325%-13.9% of gross rental income.

Rental Limits

Sedona does not impose an annual cap on the number of nights you can rent. Each individual stay must be less than 30 days.

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Liability insurance is required for the property's use as a short-term rental. Not publicly specified

Penalties for Non-Compliance

Not publicly specified

Compliance Checklist

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

  1. Obtain liability insurance. Required for property's use as a short-term rental.
  2. Apply for Annual Short-Term Rental Permit. Submit application + $210 fee.
  3. Register for tax accounts. Set up lodging tax accounts with Arizona Department of Revenue.
  4. Collect and remit taxes. 13.325%-13.9% on all bookings.
  5. Renew annually. $210 renewal fee.

Official Sources

  1. Short-Term Rentals | City of Sedona
  2. Ch. 5.25 Short-Term Rental Regulation | Sedona City Code
  3. Short-Term Lodging | Arizona Department of Revenue