Sedona Short-Term Rental Regulations

Sources verified 2026-04-06 – 2026-07-24
TL;DR
Sedona requires Annual Short-Term Rental Permit ($210) with no primary-residence requirement. Combined tax rate is 13.325%-13.9%. No annual day limit, but each stay must be less than 30 days.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Annual Short-Term Rental Permit ($210)
Primary Residence ✗ Not required
Annual Day Limit No limit — per stay: 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 TPT — State + County, Transient Lodging (Yavapai 6.325% / Coconino 6.90%) 6.325%–6.90% Arizona Department of Revenue
City of Sedona Hotels (business code 044) 3.5% City of Sedona
City of Sedona Additional Hotel/Motel Tax (business code 144) 3.5% City of Sedona

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, though the required coverage amount is 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.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Sedona?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Sedona requires an Annual Short-Term Rental Permit.
How much does a short-term rental permit cost in Sedona?
An Annual Short-Term Rental Permit in Sedona costs $210 per year.
Does Sedona require a short-term rental to be your primary residence?
No. Sedona allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
How many days a year can you short-term rent in Sedona?
Sedona does not cap the total number of nights per year. Its short-term-rental rules apply when a stay is less than 30 days.
What taxes do you pay on a short-term rental in Sedona?
Short-term rental stays in Sedona are subject to a combined 13.325%-13.9% in lodging taxes. This combines 6.325%–6.90% Arizona TPT — State + County, Transient Lodging (Yavapai 6.325% / Coconino 6.90%) + 3.5% City of Sedona Hotels (business code 044) + 3.5% City of Sedona Additional Hotel/Motel Tax (business code 144). Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.
What are the penalties for short-term rental violations in Sedona?
Not publicly specified.

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
  4. Sedona City Profile — Transaction Privilege Tax & Use Tax Rates | Arizona Department of Revenue (Model City Tax Code)
  5. A.R.S. § 42-5010. Rates; distribution base (transient lodging classification — 5.5%)
  6. Arizona State, County and City Transaction Privilege and Other Tax Rate Tables, effective August 1, 2026 (ADOR 11249) — Table 1 business code 025 Transient Lodging