Short-Term Rental Regulations in Arizona (AZ)
Arizona has a light level of short-term rental regulation. STR-friendly. STR operators must register with the state. A license or permit is required. Platforms like Airbnb collect and remit taxes. Arizona preempts local STR bans: A.R.S. § 9-500.39 (amended by SB 1168, 2022) bars cities from prohibiting short-term rentals but lets them require a local permit (fee capped at the lesser of actual cost or $250), liability insurance, neighbor notification, and nuisance enforcement. Civil penalties for violations escalate: up to $500 or one night's rent (1st), $1,000 or two nights' (2nd), $3,500 or three nights' (3rd+ within 12 months). Hosts also need a state Transaction Privilege Tax (TPT) license.
Full Requirements Summary
Arizona has 2 key regulatory requirements at the state level.
| Requirement | Status | Details |
|---|---|---|
| STRs Allowed | Yes | Short-term rentals are legal |
| Statewide Law | Yes | State has specific STR legislation |
| Registration Required | Yes | Must register with state/local authority |
| License Required | Yes | Must obtain a license or permit |
| Primary Residence Only | No | Investment properties allowed |
| Maximum Nights/Year | No limit | No annual night limit at state level |
| Minimum Stay | No minimum | No minimum stay requirement |
| Host Presence Required | No | Un-hosted stays allowed |
| Insurance Required | No | No state insurance mandate |
| Safety Inspection | No | No state-required inspection |
| Platform Tax Collection | Yes | Platforms collect and remit taxes |
City-Level STR Regulations in Arizona
Rules diverge across Arizona: Scottsdale is the strictest of the 5 cities we track (moderate), while Flagstaff is the most permissive (light).
| City | Restriction Level | Local Notes |
|---|---|---|
| Scottsdale | Moderate | Scottsdale licenses STRs under Ordinance 4566; operating unlicensed risks penalties per 30-day period, and the state's escalating civil-penalty ladder ($500/$1,000/$3,500) applies. Verify current requirements with the city. |
| Phoenix | Light | STR registration required. Nuisance ordinance with escalating fines. TPT license mandatory. No density cap. |
| Sedona | Light | STR registration required. High density of STRs has prompted stricter nuisance enforcement. City cannot ban STRs per state law. |
| Tucson | Light | STR registration required. TPT license needed. Relatively permissive compared to Phoenix metro. |
| Flagstaff | Light | STR registration required. City has pushed for more regulation but limited by state preemption law. |
How Arizona Compares to Other States
Below is a comparison of Arizona with five states that have similar STR regulation levels. This helps illustrate where Arizona stands nationally in terms of short-term rental friendliness.
| State | Restriction Level | Registration | License | Night Cap | Platform Tax |
|---|---|---|---|---|---|
| Arizona (AZ) | Light | Yes | Yes | No limit | Yes |
| Connecticut (CT) | Light | Yes | No | No limit | Yes |
| Delaware (DE) | Light | No | Yes | No limit | No |
| Idaho (ID) | Light | No | No | No limit | No |
| Iowa (IA) | Light | No | No | No limit | Yes |
| Kentucky (KY) | Light | No | No | No limit | Yes |
Frequently Asked Questions About Arizona STR Regulations
Can I legally operate an Airbnb in Arizona?
Yes, short-term rentals are legal in Arizona. You must register with the state. A license or permit is required. The state's overall restriction level is light.
Do I need a permit or license for an Airbnb in Arizona?
Yes, Arizona requires a license or permit for short-term rental operators.
Does Airbnb collect taxes in Arizona?
Yes, Arizona has a platform accountability law. Airbnb and other platforms collect and remit applicable state and/or local taxes on behalf of hosts.
Which city in Arizona has the strictest Airbnb rules?
Among the cities we track, Scottsdale has the most restrictive STR regulations in Arizona with a moderate restriction level. Scottsdale licenses STRs under Ordinance 4566; operating unlicensed risks penalties per 30-day period, and the state's escalating civil-penalty ladder ($500/$1,000/$3,500) applies. Verify current requirements with the city.
Check Another State or City
Use our STR regulation lookup tool to find the exact rules for your specific city in Arizona, or browse all 50 states to compare short-term rental friendliness across the country.