Short-term rental rules · Phoenix, Arizona
Short-term rentals in Phoenix, explained properly.
Like the rest of Arizona, Phoenix cannot ban short-term rentals, but it requires a $250 annual city permit, a state TPT license, $500,000 in liability insurance (or platform coverage), a sex-offender check on every guest, and certified-mail notice to neighbors. Since April 2026, owners of properties with an ADU that received its certificate of occupancy on or after September 14, 2024, must submit a notarized attestation that they will live on the property, plus proof of address. Stays of 29 days or less carry a combined 13.07% lodging tax (5.8% city, 5.5% state, 1.77% county).
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Yes, citywide — Arizona state law prohibits municipalities from banning short-term rentals outright [1] [2] |
| Permit fee | $250, non-refundable, for both the initial application and each annual renewal [3] [4] |
| State TPT license required | Property owners must obtain a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue, separate from the city permit [3] |
| Certified-mail neighbor notification | Before operating, owners must send certified-mail notice to neighboring single-family properties (adjacent on all sides, directly across the street, and diagonally across the street) and to every HOA or neighborhood association whose boundaries fall within 600 feet [3] [5] |
| ADU owner-residency requirement (new, 2026) | Effective April 4, 2026, any STR permit application for a property that has an ADU whose certificate of occupancy was issued on or after September 14, 2024, must include a notarized attestation that the owner will live on the property, plus proof of address [3] [6] |
| Application processing time | The city must issue or deny a permit within 7 days of receiving a complete application through the SHAPE PHX portal; under city code, an application not approved within 7 days is deemed denied [3] [6] |
| Penalty for violations | Within a 12-month period: the greater of $500 or one night's advertised rent for a first violation, $1,000 or two nights' rent for a second, and $3,500 or three nights' rent for a third or later one. Operating without a permit costs $1,000 per month. The permit can be suspended for up to 12 months after three verified violations in 12 months, or after a single serious violation [3] [7] [8] |
| Combined lodging tax | 13.07% for stays of 29 consecutive days or less: City of Phoenix 5.8% (2.8% base plus 3.0% transient lodging tax), Arizona 5.5%, Maricopa County 1.77% [9] [10] |
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Detailed rules
The full picture, section by section
Eligibility & zoning
| No citywide occupancy limit specified | Phoenix does not appear to specify a numeric occupancy limit for short-term rentals in its own registry materials, though underlying zoning rules may still constrain use of certain properties [11]Confirming |
|---|---|
| Maricopa County Assessor notification required | Owners must update their rental status with the Maricopa County Assessor's Office as part of registering a short-term rental [3] |
Licensing & application
| Required application documents | Applications require an Affidavit & Attestation (Acknowledgment and Agreement), a safety equipment description and map, owner's-designee authorization if applicable, and an Attestation of Compliance confirming notice to adjacent neighbors [3] [6] [12] City code also requires emergency contact details, proof of a TPT license, proof of $500,000 liability insurance (or equivalent platform coverage), Maricopa County Assessor registration, and, where applicable, the ADU residency attestation. Before operating, the owner and any designee must submit a notarized attestation that they are not registered sex offenders and have no felony convictions involving death, serious injury or a deadly weapon in the prior five years. Owners must also run a registered sex offender background check on every guest. |
|---|---|
| Permit number must be displayed in advertisements | The city permit/license number must be displayed on all advertisements for the short-term rental [3] [10] The state also requires the TPT license number in STR advertising. Inside the unit, a copy of the permit and the owner's and emergency contact's details must be posted within ten feet of the primary entrance. |
Operations & requirements
| Liability insurance required | Permit applicants must show liability insurance of at least $500,000 in the aggregate, or show that every booking goes through a platform that provides equal or greater primary liability coverage [6] [1] |
|---|---|
| Complaint and enforcement process | The Neighborhood Services Department handles code compliance investigations; complaints can be filed via an online portal or by emailing [email protected] [3] |
Changes
Recent and pending changes
We re-checked Phoenix's STR registry page, Phoenix City Code Chapter 10, Article XVI (current through Ordinance G-7524, June 17, 2026), the city's combined tax rate chart effective January 1, 2026, the Arizona Department of Revenue's short-term lodging page and January 2026 TPT update, the live A.R.S. § 9-500.39 text, and 2026 Arizona bill status. The latest Phoenix STR change is Ordinance G-7495 (ADU residency attestation, adopted March 4, 2026). No Phoenix lodging tax rate changed in 2026. None of the 2026 state STR bills became law; SB1076 (caps and spacing for cities under 70,000, which would not have covered Phoenix) died in committee. Arizona's legislature revisits STR preemption almost every session, so watch the 2027 session.
Phoenix amended City Code § 10-197 so that an STR permit application for a property with an ADU whose certificate of occupancy was issued on or after September 14, 2024, must include a notarized attestation that the owner will live on the property. The city also requires proof of address with the attestation.
Phoenix's base transaction privilege tax rate, which also applies to hotels and short-term lodging, rose from 2.3% to 2.8% on July 1, 2025. With the separate 3.0% transient lodging tax, the city's share on stays of 29 days or less is 5.8%, and the combined rate is 13.07%.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.