Short-Term Rental Rules in Phoenix, AZ (2026): Permits, Taxes and Limits
Short-term renting is allowed in Phoenix, AZ, but hosts need a short-term rental (STR) permit issued by the Planning and Development Department [1]. Each property used for STR requires a permit, and the city must issue or deny it within 7 days of receiving all application documents [1].
Do you need a permit or license?
Yes, hosts need an STR permit from the City of Phoenix [1]. Applications must be completed through the SHAPE PHX customer portal [1]. There is a non-refundable application and renewal fee of $250 [1]. Permit renewal is required every 12 months [4].
Taxes
Income from short-term rentals is subject to the Arizona transaction privilege tax (TPT) [2]. Hosts need a TPT License, which can be applied for through the Arizona Department of Revenue's website, AZTaxes.gov [2]. If a property is listed on an online lodging marketplace (OLM), the OLM is responsible for collecting and remitting the TPT [2].
Limits and restrictions
All non-residential uses and some specific activities like holding a special event requiring a permit, housing sex offenders, or operating a sober living home are prohibited [3]. Property owners must reside on-site if an Accessory Dwelling Unit is used as an STR, starting April 4, 2026 [1]. Hosts must comply with local zoning and neighborhood regulations [3].
Penalties
Civil sanctions apply for violations: $500 for a first offense, $1,000 for a second offense within 12 months, and $1,500 for subsequent offenses [3]. Within 30 days of a verified violation, the city will notify the Arizona Department of Revenue and the owner [3].
How to apply
Applications for a STR permit must be submitted via the SHAPE PHX Portal starting October 26, 2023 [1]. Required documents include an Affidavit and Attestation, proof of liability insurance with at least $500,000 coverage, and compliance with pool barrier and safety equipment codes [4]. A Notice of Intent must be sent to neighboring properties, HOAs, and neighborhood associations within 600 feet [4].
At a glance
| Topic | What the rules say |
|---|---|
| Permit required | Yes, from the Planning & Development Department [1] |
| Application fee | $250 non-refundable [1] |
| Taxes | Subject to TPT [2] |
| Reside on property | Required for ADUs from April 4, 2026 [1] |
| Prohibited uses | Non-residential, special events without permit, several others [3] |
| Penalty structure | $500 to $1,500, escalating per offense [3] |
| Application portal | SHAPE PHX [1] |
| Permit renewal | Every 12 months [4] |
FAQ
Do short-term rentals need liability insurance?
Yes, hosts must have liability insurance coverage of at least $500,000 [4].
Who collects the taxes for online bookings?
The online lodging marketplace (OLM) is responsible for collecting and remitting the TPT [2].
Can special events be held at short-term rental properties?
No, special events that require a city permit are prohibited at short-term rental properties [3].
Running a rental in Phoenix
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- Short-Term Rental Registry | City of Phoenix (official)
- Short-Term Lodging | Arizona Department of Revenue (official)
- City of Phoenix - File #: 19-3010 (official)
- STR - Affidavit and Attestation- Acknowledgement and Agreement (official)
Last checked: October 7, 2026. This page summarizes rules the city, county or state has published. It is not legal advice, and rules change: confirm with the city before you list a property.