Guide · Cost to run
What it costs to run a Phoenix short-term rental.
Phoenix charges a flat $250 for a new permit and the same for every annual renewal. Arizona law keeps the city from banning rentals, so the costs to plan for are the 13.07% lodging tax, insurance and the penalties for slipping.
The short answer
Four numbers to know
| Permit | $250, new and each renewal Non-refundable. The city must issue or deny within 7 days of a complete application, and an application not approved in 7 days is deemed denied. |
|---|---|
| Lodging tax | 13.07% for stays of 29 days or less State 5.5%, Maricopa County 1.77% and City of Phoenix 5.8%. You also need a state TPT license, which is separate from the city permit. |
| Insurance | $500,000 liability Or show that every booking goes through a platform with equal or greater primary liability coverage. |
| Penalties | $500, $1,000, then $3,500 or more Each is the greater of the amount or one, two or three nights' rent. Operating without a permit costs $1,000 per month. |
Fixed cost
What the permit costs
The columns show how many booked nights, at an example nightly rate before tax, cover the permit (examples, not forecasts).
| Item | Amount | Nights at $150 | Nights at $250 | Nights at $400 |
|---|---|---|---|---|
| Permit, new or renewal | $250 | 1.7 | 1.0 | 0.6 |
Source: City of Phoenix Short-Term Rental Registry page, read October 7, 2026. Not included: the state TPT license, insurance premiums, certified-mail costs for neighbor notices, and the safety equipment described on your application.
Guest-paid, but it shapes your price
The tax stack on a stay
An illustration: 3 nights at $300 is a $900 rental price. At the combined rate, tax comes to about $117.63.
| Tax | Rate | On the $900 example |
|---|---|---|
| State of Arizona transient lodging TPT | 5.5% | $49.50 |
| Maricopa County | 1.77% | $15.93 |
| City of Phoenix base transaction privilege tax | 2.8% | $25.20 |
| City of Phoenix additional transient lodging tax | 3.0% | $27.00 |
| Total | 13.07% | $117.63 |
This is a simplified illustration on the base rental price. Arizona publishes the state and county rates and they can change each July 1, so confirm them before you price. Platforms may collect some of these taxes on their bookings. Since January 1, 2025, Phoenix no longer taxes long-term residential rentals, but short stays are still taxed as lodging.
What you need to do
Before your first guest
| Neighbor notice | Certified mail before you operate To adjacent, across-the-street and diagonal single-family neighbors, and to every registered HOA or neighborhood association within 600 feet. |
|---|---|
| Two registrations | City permit and state TPT license Plus updating your rental status with the Maricopa County Assessor. |
| ADUs | Owner must live on site For ADUs with a certificate of occupancy issued on or after September 14, 2024, a notarized attestation is required from April 4, 2026. |
Full sourced rules, with evidence for each line, are on the Phoenix market page. For a neighboring market, see the Scottsdale cost guide or the Sedona page.
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