Taxes & Fees: Phoenix vs Tempe
How do taxes & fees rules compare between Phoenix, AZ and Tempe, AZ?
Phoenix has fewer restrictions than Tempe.
Phoenix, AZ
Maricopa County
Phoenix STR operators pay a combined tax rate of approximately 12.57% (state + county + city TPT). State TPT license required. Platforms like Airbnb auto-collect Arizona TPT. Arizona eliminated residential rental tax starting 2025.
View full Phoenix rules →Tempe, AZ
Maricopa County
Tempe STR operators must collect and remit Arizona Transaction Privilege Tax (TPT) and local taxes on rental income. The combined tax rate includes state, county, and city components. Operators must hold a valid TPT license from the Arizona Department of Revenue.
View full Tempe rules →Key Facts Comparison
| Fact | Phoenix | Tempe |
|---|---|---|
| Combined Rate | ~12.57% | - |
| TPT License | Required (ADOR) | - |
| Insurance | $500,000 liability | - |
| Platforms | Auto-collect AZ TPT | - |
| Tax Type | - | Arizona Transaction Privilege Tax (TPT) |
| Components | - | State + county + city taxes |
| License Required | - | AZ DOR TPT license |
| Filing | - | Monthly or quarterly |
Highlighted rows indicate differences between cities.
Phoenix FAQ
What taxes do I owe on short-term rental income in Phoenix?
Phoenix STR operators pay a combined tax rate of approximately 12.57% (state + county + city TPT). State TPT license required. Platforms like Airbnb auto-collect Arizona TPT. Arizona eliminated residential rental tax starting 2025.
How much is the short-term rental license fee in Phoenix?
Combined Rate: ~12.57%. TPT License: Required (ADOR). Insurance: $500,000 liability. Platforms: Auto-collect AZ TPT.
Tempe FAQ
What taxes do I owe on my Tempe STR?
You must collect Arizona TPT covering state, county, and city components. A TPT license from the Arizona Department of Revenue is required.
Does Airbnb collect taxes for me in Tempe?
Airbnb collects state and county taxes automatically in Arizona, but you should verify city-level tax remittance and maintain your own TPT license.
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