Guide · City vs city
Scottsdale vs Phoenix: short-term rental rules.
Arizona law stops both cities from banning short-term rentals or capping permits, so the basics match: a $250 annual city license, a state TPT license and $500,000 of liability insurance. The differences are in the details: taxes, what you must do before opening, and how each city treats properties with an ADU.
The short answer
Which city fits your plan
| Lower tax | Phoenix, at 13.07% against Scottsdale's 13.97%. We're still confirming Scottsdale's rate. |
|---|---|
| A property with an ADU | Read the ADU rule first. Scottsdale requires you to live there if you rent the ADU as an STR. Phoenix requires you to live on the property if it has an ADU built since September 2024. |
| Everything else | The licensing is close to identical, and neither city can cap permits. Choose on the property and the numbers, not the rules. |
Side by side
The rules compared
Each answer comes from the sourced market page; follow the links for citations and detail.
| Rule | Scottsdale | Phoenix |
|---|---|---|
| Are STRs allowed? | Yes, in any residential zone | Yes, citywide |
| Permit cap | None; state law doesn't allow caps | None; state law doesn't allow caps |
| City license | $250 a year | $250 a year, non-refundable. The city must issue or deny it within 7 days of a complete application. |
| State tax license | Arizona TPT license | Arizona TPT license |
| Liability insurance | At least $500,000 | At least $500,000 |
| Owner-occupancy | Not required, except when an ADU is rented as an STR | Not required, except on properties with an ADU whose certificate of occupancy was issued on or after September 14, 2024 (notarized attestation since April 4, 2026) |
| Before you open | Sex offender registry background check | Certified-mail notice to neighboring homes and to HOAs within 600 feet |
| Lodging tax | 13.97% combined (state, county and city) | 13.07% for stays of 29 days or less |
| Full rules and sources | Scottsdale rules Verified September 26, 2026 | Phoenix rules Verified September 27, 2026 |
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Compares local rules for short-term rentals in each city's jurisdiction; it isn't investment advice and doesn't weigh prices, occupancy or returns. General information only, not legal or tax advice. HOA rules and deed restrictions can be stricter. See also cities that banned or restricted Airbnb.