Legal citywide with a $250 annual permit, TPT license, and $500k insurance
Phoenix requires a Short-Term Rental Permit from the Planning and Development Department for every dwelling unit, at $250 a year, plus an Arizona TPT license and a city privilege license before the city will issue it. Arizona law bars cities from banning STRs outright, so investors face no owner-occupancy rule and no citywide cap. Accessory dwelling units permitted after September 2024 need owner-occupancy proof.
Permit and costs
- Permit
- Short-Term Rental Permit
- Issued by
- City of Phoenix Planning and Development Department
- Cost
- $250 / year (plus $12 state TPT license and $50 city privilege license)
- Renewal
- Annual
Key limits
- Owner occupancy
- Not required
- Night cap
- None
- ADUs
- ADUs permitted Sept 14, 2024 or later need owner-occupancy proof
- Insurance
- At least $500,000 liability coverage
Taxes
- Transient lodging tax
- About 12-13% combined (state 5.5% plus county and city layers)
Registration checklist
- 1Get the TPT licenseRegister for an Arizona TPT license at AZTaxes.gov first, since the permit application needs the number.
- 2Notify neighborsSend the required written notice of intent to adjacent neighbors and nearby HOAs before applying.
- 3Apply on SHAPE PHXSubmit the permit application with proof of TPT, insurance, and county rental registration, then post the permit number on all listings.
What could change this verdict
Hosted stays need the same $250 permit
Renting a room while living there requires the same city permit, TPT license, and insurance. Phoenix has no lighter hosted-only track.
Permit and costs
- Permit
- Short-Term Rental Permit
- Issued by
- City of Phoenix Planning and Development Department
- Cost
- $250 / year (plus $12 state TPT license and $50 city privilege license)
- Renewal
- Annual
Sources
Rules researched October 2026. They change, so verify with the city before you buy.
Want this verified for your exact address?
- Verdict for your parcel, not just the city
- Permit name, fee, and renewal schedule
- Night caps, occupancy rules, and key limits
- Tax rates and a step-by-step checklist
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