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Phoenix Short-Term Rental Laws (2026)

Permits, taxes, caps, and penalties for Airbnb & vacation rentals in Phoenix, Arizona — from official sources, with citations. Reviewed 2026-07-03.

Permitted with Conditions

Phoenix cannot ban your short-term rental (Arizona state preemption), but you must hold a $250 city permit, a state TPT license, and follow strict notification and conduct rules before renting a single night.

Can you operate a short-term rental in Phoenix?

Arizona state law bars cities from prohibiting short-term rentals, so STRs are legal in every Phoenix neighborhood. In exchange, SB1168 (2022) let cities run a limited permit program, and Phoenix switched from registration to a mandatory permit effective November 6, 2023. Operating without a current, unsuspended permit is itself a violation.

State preemption

A city or town may not prohibit vacation rentals or short-term rentals, and may only regulate them in the specific ways the statute lists (health/safety, nuisance, permits, notification, insurance).

§ A.R.S. § 9-500.39(A)-(B)

City permit mandatory

Under SB1168 authority, Phoenix requires every STR property to obtain a permit from the Planning & Development Department (effective Nov 6, 2023). The city must issue or deny within 7 days of a complete application, and denial grounds are limited by state law.

§ Phoenix City Code Ch. 10, Art. XVI; SB1168 (2022, Ch. 343)

Residential use only

STRs may not be used for nonresidential purposes — special events that would need a permit, retail, restaurant, banquet space, event center or similar uses are prohibited statewide.

§ A.R.S. § 9-500.39(K)

ADU owner-occupancy (new for 2026)

Effective April 4, 2026, if the property has an accessory dwelling unit with a certificate of occupancy issued on or after September 14, 2024, the owner must submit a notarized attestation plus proof of address showing they will reside on the property.

§ A.R.S. § 9-500.39(B)(9); Phoenix STR Registry notice

Permits & licenses in Phoenix

Phoenix issues one STR permit per property through the SHAPE PHX customer portal, with a two-stage document review. Expect a decision within 7 days of submitting all documents, and appeal rights if denied, non-renewed, or suspended.

  1. 1

    Get your TPT license

    Obtain an Arizona transaction privilege tax license from ADOR (AZTaxes.gov) and update the property's rental status with the Maricopa County Assessor — both are submittal requirements.

  2. 2

    Apply in SHAPE PHX

    Complete the STR permit application in the city's SHAPE PHX portal and pay the $250 non-refundable fee (charged again at each renewal).

  3. 3

    Submit Review 1 documents

    Affidavit & Attestation (acknowledgment and agreement), a description/map of safety equipment, and the Owner's Designee Authorization naming the contact responsible for responding to complaints any time of day.

  4. 4

    Notify neighbors (Review 2)

    Send a Notice of Intent by certified mail to all adjacent, across-the-street, and diagonal single-family neighbors (or all units on the same floor in multifamily) and to every registered HOA or neighborhood association within a 600-foot radius, then file the Attestation of Compliance.

  5. 5

    Advertise with your permit number

    Display the STR permit number on every advertisement; ADOR separately requires the TPT license number on advertising for direct-booking hosts.

Fees: $250 non-refundable per property, initial and each renewal — state law caps city STR permit fees at the lesser of actual cost or $250 (A.R.S. § 9-500.39(B)(5)(f)).

Short-term rental taxes in Phoenix

Stays under 30 days are taxable transient lodging under Arizona TPT (A.R.S. § 42-5070 and Model City Tax Code §§ -444/-447). If you book 100% through a platform like Airbnb/Vrbo, the online lodging marketplace collects and remits — you deduct that income with code 775 and keep the platform's Form 5018 — but you must still hold a TPT license and file returns, including $0 returns for empty periods.

LevelTaxRateCollected byFiling
StateTransient lodging TPT (business code 025)see sourceVariesPer ADOR-assigned frequency on AZTaxes.gov; $0 returns required even with no bookings
CountyMaricopa County transient lodging excise (reported with state code 025)see sourceVariesFiled with the state TPT return
CityPhoenix hotel classification tax under Model City Tax Code (business code 044)see sourceVariesFiled with the state TPT return
CityAdditional city hotel/transient lodging tax (business code 144), where imposed — check ADOR's rate table for Phoenixsee sourceVariessee source

These rules change — Phoenix can amend them any month.

Compliance Watch monitors Phoenix's official sources and emails you the day permits, caps, or taxes change: what changed, old vs. new, and what to do. $49/yr per property, 100% credited toward Tenby.

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Operating rules

Prohibited uses (must be posted on-site)

No nonresidential use, no special events requiring a city/state permit, no retail/restaurant/event center/banquet use, no housing sex offenders, no sober living home operation, no selling liquor, illegal drugs or pornography, and no nude/topless dancing, obscenity or adult-oriented business. A notice listing these must be posted conspicuously in the rental.

§ Phoenix City Code § 10-195(C) (Ord. G-6653); A.R.S. § 9-500.39(B)(3), (K)

24/7 emergency contact and 60-minute response

The owner or designated agent's phone and email must be displayed within 10 feet of the primary entrance inside the rental, and the contact must be on-premises or reachable by phone/text within 60 minutes of a police officer's request.

§ Phoenix City Code §§ 10-194(E), 10-195(E) (Ord. G-6653)

Advertising disclosures

Every listing must display the Phoenix STR permit number; ADOR also requires the TPT license number on advertising associated with the rental.

§ Phoenix STR Registry; A.R.S. § 9-500.39(B)(7)

Liability insurance

The state framework lets cities require aggregate liability coverage of at least $500,000, or instead allow the unit to be offered exclusively through an online lodging marketplace providing equal or greater coverage — confirm the current Phoenix affidavit requirements when applying.

§ A.R.S. § 9-500.39(B)(8)

Guest sex-offender background checks

Where a city requires sex-offender background checks on booking guests, state law waives the requirement if the online lodging marketplace performs the check — platform bookings generally satisfy it.

§ A.R.S. § 9-500.39(E)

Penalties for illegal short-term rentals in Phoenix

Phoenix's Neighborhood Services Department leads enforcement, investigating unpermitted STRs and issuing Notices of Ordinance Violation. Court-adjudicated (verified) violations carry an escalating fine ladder set by city ordinance within state-law caps, and repeat or serious violations trigger a 12-month permit suspension.

Official sources

  1. [1]Short-Term Rental Registry — City of Phoenix Planning & Development
  2. [2]Ordinance G-6653 — Phoenix City Code Ch. 10, Art. XVI (Short-Term Vacation Rental), §§ 10-193 to 10-197
  3. [3]A.R.S. § 9-500.39 — Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penalties
  4. [4]Senate Bill 1168 (2022, Chapter 343) — Arizona Legislature session law
  5. [5]Short-Term Lodging — Arizona Department of Revenue (TPT)
  6. [6]Transaction Privilege Tax — Arizona Department of Revenue

Summarized from the official sources above as of 2026-07-03. Informational, not legal advice — always confirm requirements with the jurisdiction before acting.

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