Tempe, AZ Home Business: Zoning & Home Occupation Permits (2026)
Key Facts
- Governing section
- ZDC § 3-412(A)-(B)
- Permit type
- By-right accessory use, no separate permit
- Employee cap
- Three workers max, one non-family
- Hazardous materials
- On-site storage/use prohibited
- Enforcement
- Any deviation is a Code violation
Summary
Tempe allows a home occupation in any residential dwelling as an accessory use, but only by meeting a fixed list of protective standards rather than through a discretionary permit. Zoning and Development Code Section 3-412 makes any deviation from those standards itself a Code violation.
A.Purpose. Home occupation allows small commercial ventures for which the leasing of commercial quarters is not cost effective and which, by the nature of the venture, are appropriate in scale and impact to be operated within a residence.B.Applicability. Home occupations are permitted in all residential dwellings as an accessory use (see Section 7-102 for definition), subject to any of the following standards indicated to protect the residential character of Tempe's neighborhoods. Deviation from any provision noted below shall be considered a violation of this Code.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: City Code: Supplement 33 Update 4 | Zoning and Development Code: Supplement 11 Update 2).
Full Breakdown
Section 3-412(A) explains the purpose behind allowing home occupations: they let residents run 'small commercial ventures for which the leasing of commercial quarters is not cost effective' when the business is small enough in scale and impact to fit inside a residence. Subsection B, Applicability, makes home occupations permitted by right, as an accessory use under Section 7-102's definition, in every residential dwelling in the city, so there is no separate zoning-clearance application just to start one; meeting the listed standards is the permit. 1: the business must run inside a lawfully built enclosed building, cannot alter the structure's primary use or building-code occupancy classification, cannot violate any prior development approval conditions, must keep products and equipment out of view from outside, and cannot produce offensive noise, vibration, smoke, dust, odor, heat or glare.
2 bars on-site storage or use of hazardous materials beyond what is normally incidental to residential living. 3 caps staffing at three people working within the residence, of whom no more than one may be a non-family member, and bars using the home as a dispatch headquarters for off-site workers. Because Section 3-412(B) states plainly that 'deviation from any provision noted below shall be considered a violation of this Code,' the zoning standard functions as a strict eligibility test: a business that cannot meet every listed condition is not a lawful home occupation and cannot operate at the address, regardless of whether the owner holds an active state or city business license.
Violations & Fines
Failing any Section 3-412(B) standard, altering the structure's occupancy, storing hazardous materials, or running an outward-facing storefront, is a Code violation. Section 1-201(D) makes it punishable by a civil sanction of $100 to $1,000 per day or a class 1 misdemeanor in Tempe Municipal Court carrying up to a $2,500 fine and up to six months in jail.
Frequently Asked Questions
Do I need a permit to run a home business in Tempe?
How many people can work at a Tempe home-based business?
Can I store business inventory or chemicals in my garage?
Can my home business change how my house looks from the street?
Sources & Official References
Other rules in Tempe
How Tempe compares: Easiest Cities to Run a Home Business·Compare Tempe to another location·View the Arizona home business overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Zoning & Home Occupation Permits in Nearby Cities
How other cities in Maricopa County handle zoning & home occupation permits.