Phoenix, AZ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base hotel tax
- 2.8% (§ 14-444)
- Additional transient tax
- 3% (§ 14-447)
- Combined city rate
- 5.8% of gross lodging income
- Applies to
- hotels, motels, houses, apartments renting to transients
Summary
Phoenix taxes hotel and short-term lodging revenue at a combined 5.8% city rate: 2.8% base plus a 3% additional transient lodging tax on top.
In addition to the taxes levied as provided in Section 14-444, there is hereby levied and shall be collected an additional tax in an amount equal to three percent of the gross income from the business activity of any hotel engaging or continuing within the City in the business of charging for lodging and/or lodging space furnished to any transient.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance G-7524, passed June 17, 2026).
Full Breakdown
City Code § 14-444 taxes gross income from operating a hotel at 2.8%. Section 14-447 layers on an additional 3% tax on gross income from any hotel charging a transient for lodging, for a combined 5.8% city privilege tax. "Hotel" is defined at § 14-100 to include not just hotels and motels but any "house, apartment house, trailer, or other lodging place" that furnishes lodging to a transient for compensation: language broad enough to reach short-term/vacation rentals, not just traditional hotels. This is separate from and additional to the state's transaction privilege tax and county bed tax.
Violations & Fines
Operators who fail to collect and remit the tax face the City's standard privilege-tax enforcement: assessment, penalties, and interest through the Tax Collector and Department of Revenue collection process under Chapter 14.
Frequently Asked Questions
Does Phoenix's hotel tax apply to Airbnb-style rentals?
What is Phoenix's total hotel tax rate?
Sources & Official References
Other rules in Phoenix
Compare Phoenix to another location·View the Arizona hotels & lodging overview
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Transient Occupancy Tax in Nearby Cities
How other cities in Maricopa County handle transient occupancy tax.