Short-Term Rental Side Hustle in Arizona: Permits for Phoenix, Scottsdale, and Tucson

Quick answer (TL;DR)

• Arizona cities can't ban short-term rentals, but they can regulate them. State law lets cities require a local permit or license (fee capped at the lesser of actual cost or $250), emergency contact information, neighbor notification, and proof of liability coverage. (A.R.S. § 9-500.39; checked October 7, 2026.)
• Statewide, you'll generally need: an Arizona TPT license from ADOR for each rental, and registration of the rental with your county assessor.
• Phoenix: a city short-term rental permit for each unit; $250 initial and renewal fee; one-year term. (Phoenix City Code § 10-196; city STR page; checked October 7, 2026.)
• Scottsdale: an annual city short-term/vacation rental license for each property; $250 per property per year; neighbor notification within 30 days. (City of Scottsdale; checked October 7, 2026.)
• Tucson: we didn't find a separate STR permit on an official City page. Tucson requires a city business license and has its own transient rental tax treatment. Confirm with the City of Tucson before you list.
• Check your HOA first. CC&Rs can restrict or prohibit short-term rentals even where the city allows them.
• No income promises. Occupancy and nightly rates vary a lot by season, neighborhood, and property. We don't publish revenue estimates.

The state layer: what every Arizona host needs

1. What state law lets cities do (and not do)

Arizona's short-term rental statute, A.R.S. § 9-500.39, sets the framework every city works within. In plain English, a city or town:

• May not prohibit vacation rentals or short-term rentals.
• May regulate them for health and safety, apply zoning and nuisance rules the same way as other residential property, and prohibit certain uses (for example, sober living homes, adult-oriented businesses, or illegal activity).
• May require a local permit or license. The application can ask only for owner/agent contact information, the property address, proof of a TPT license, emergency contact information, an agreement to follow the law, and a fee of no more than the actual cost or $250, whichever is less.
• Must issue or deny a permit within seven business days of a complete application, and can deny only for listed reasons.
• May require an emergency contact who responds to complaints, notification of adjacent and across-the-street neighbors before first renting, display of the permit number (or TPT number) on every listing, and liability coverage of at least $500,000 (or listing through a platform that provides equal or greater coverage).
• May impose escalating civil penalties for verified violations, and may suspend a permit for up to 12 months after repeated or serious violations.
• Accessory dwelling units (ADUs): cities may require the owner to live on the property if the ADU's certificate of occupancy was issued on or after September 14, 2024.
• No events: a short-term rental may not be used for nonresidential purposes, such as special events that would otherwise need a permit, or retail, restaurant, or banquet use.

(All from A.R.S. § 9-500.39, read on azleg.gov October 7, 2026.)

2. Arizona TPT license

Short-term rentals are generally subject to Arizona's Transaction Privilege Tax (TPT) on transient lodging, and a valid TPT license is a required part of city permit applications in both Phoenix and Scottsdale. Register through AZTaxes: https://www.aztaxes.gov/. ADOR's state TPT license fee is $12 per location, plus applicable city fees. (ADOR, TPT License; checked October 7, 2026.)

Platforms: Online lodging marketplaces may collect and remit some taxes on bookings made through them. That doesn't remove the license requirement. Confirm with ADOR what platforms remit and what you still need to file, including for direct bookings.

Also see our TPT guide and Side Hustle Taxes in Arizona.

3. County assessor registration

Arizona requires residential rental properties to be registered with the county assessor. Phoenix's permit application asks for evidence of Maricopa County Assessor registration under A.R.S. § 33-1902, and Scottsdale says it's illegal to rent a property before it's registered with the Maricopa County Assessor. (Phoenix City Code § 10-197; City of Scottsdale; checked October 7, 2026.) In Tucson, that's the Pima County Assessor (https://www.asr.pima.gov/); confirm its registration steps before you list.

Phoenix

What you need: a City of Phoenix short-term rental permit for each dwelling unit, applied for through the Planning & Development Department.

Sources: Phoenix City Code §§ 10-196 and 10-197 (code current through Ordinance G-7524, June 17, 2026); City of Phoenix Short-Term Rental Registry page. Checked October 7, 2026.

Penalties: Phoenix's page describes escalating penalties for court-adjudicated violations (starting at $500 or one night's rent) and possible permit suspension, matching the state statute.

Official page: https://www.phoenix.gov/administration/departments/pdd/registration-licensing/short-term-rental-registry.html

Scottsdale

What you need: an annual City of Scottsdale short-term/vacation rental license for each property rented for less than 30 days.

Source: City of Scottsdale, Vacation and Short-Term Rentals — Information for Owners and Operators; Scottsdale STR Licensing Process Guide. Checked October 7, 2026.

Rentals of 30 days or longer don't need this Scottsdale license.

Official page: https://www.scottsdaleaz.gov/codes-and-ordinances/vacation-and-short-term-rentals/information-for-owners-and-operators

Tucson

Tucson works differently, and this is where we're most cautious.

• No dedicated STR permit found on an official page. We didn't find a City of Tucson short-term rental permit or registry page. Some third-party sites say Tucson hasn't adopted one. Confirm with the City of Tucson Business Services Department before you list, and don't assume no permit is required.
• City business license: Tucson requires business licenses for businesses operating inside city limits. The Tucson City Code lists a $25 nonrefundable application fee and a $50 annual license fee (prorated in the first year), renewed each January. (City of Tucson, Apply for a Business License; Tucson City Code § 19-39; checked October 7, 2026.)
• Transient rental tax: ADOR's Tucson city profile lists a separate "Transient – Non Hotel Short Term Rental" classification at 10%, effective March 1, 2026, under Tucson Ordinance 12215. That's in addition to state TPT. (ADOR, Tucson city profile; checked October 7, 2026.) Confirm the current rate and how to file it with ADOR before you file.
• City limits matter. Many "Tucson" mailing addresses are outside city limits (unincorporated Pima County, Oro Valley, Marana, and others), and different rules apply. (City of Tucson.) Check with the town or county for your address.

HOA checks (do this before anything else)

City permission doesn't override your HOA. Before you buy supplies or list:

1. Read your CC&Rs and rules for words like "lease," "rental," "transient," "minimum lease term," or "short-term."
2. Check for minimum rental periods (for example, 30 days or longer), registration requirements, or fees for rentals.
3. Ask the HOA in writing whether short-term rentals are allowed and what they require. Keep the answer.
4. Watch for pending amendments. Communities sometimes vote to restrict rentals.
5. Condos: building rules may cover parking, pools, guest registration, and amenity access.

Summer vs. winter: planning around Arizona seasons

We don't publish occupancy or revenue numbers, because they vary too much by property, neighborhood, and year. The general pattern hosts plan around:

• Phoenix and Scottsdale: Winter and spring are the busy season (winter visitors, spring training in February–March, golf, and events). Summer is hot, and leisure demand drops in many areas. Plan for lower summer bookings and higher AC and pool costs.
• Tucson: Winter visitors and the January–February gem and mineral show season drive demand, along with University of Arizona events. Summer is slower for many properties.
• Summer property care: Empty or lightly booked homes in extreme heat need someone checking AC, water, and pests. See our snowbird season guide for house watching.
• Cash flow: Budget your year on the slow months, not the peak. Set aside money for TPT (which isn't yours to spend) and income tax.

Quarterly review note

This page is reviewed every quarter (next review: January 2027) and whenever the Legislature or a covered city changes STR rules. On each review we re-check:

• A.R.S. § 9-500.39 (state framework)
• Phoenix City Code §§ 10-196 and 10-197 and the Phoenix STR page
• Scottsdale's STR owner/operator page and licensing guide
• City of Tucson licensing and ADOR's Tucson city profile
• ADOR TPT license page

If you spot a change before we do, tell us.