Surprise, AZ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base hotel tax rate
- 2.8% (Code § 46-3.14-444)
- Additional transient lodging tax
- 4.52% (Code § 46-3.14-447)
- Combined city rate
- 7.32% of gross lodging income
- Additional rate effective date
- Nov. 1, 2015 (Ord. No. 2015-10)
- Filing/payment due dates
- Same as State TPT under A.R.S. § 42-5014
- Late payment penalty
- Interest & civil penalties, A.R.S. §§ 42-1123, 42-1125
Summary
Surprise levies a combined 7.32 percent tax on hotel and transient-lodging income: a 2.8 percent base privilege tax on every hotel's gross income under Code § 46-3.14-444, plus a 4.52 percent additional tax on transient lodging under § 46-3.14-447. The additional rate has stood at 4.52 percent since Ordinance No. 2015-10 took effect November 1, 2015. Operators must hold a City of Surprise transaction privilege tax license before charging guests.
The tax rate shall be at an amount equal to two and eight-tenths percent of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: (a)Person. ... In addition to the taxes levied as provided in section 46-3.14-444, there is hereby levied and shall be collected an additional tax in an amount equal to 4.52 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.
Full Breakdown
The tax has two layers. 14-100, defines 'hotel' broadly as any public or private hotel, inn, tourist home, house, motel, rooming house, apartment house, trailer, or other lodging place that furnishes lodging to a transient for compensation, so a licensed short-term or vacation rental is taxed under the same hotel classification. 32 percent. The additional-tax rate was last set by Ordinance No. 2015-10, effective November 1, 2015; the base hotel classification was last amended by Ordinance No. 2024-09 on June 4, 2024. 14-530). 14-500). A short-term or vacation rental owner applying for the city's separate short-term rental license must also show proof of a valid transaction privilege tax license as part of that license application.
Violations & Fines
Failing to pay the tax on time, file a required return, or allow the tax collector to examine records triggers interest and civil penalties under the same schedule that applies to the state Transaction Privilege Tax, A.R.S. §§ 42-1123 and 42-1125, per Code § 46-3.14-540. The city may also extend a filing deadline for good cause under A.R.S. § 42-1107. Operators who never obtained the license are also exposed to separate short-term rental licensing penalties.
Frequently Asked Questions
What is the total hotel/short-term rental tax rate in Surprise?
Do short-term and vacation rentals pay the same tax as hotels?
When is the tax due, and what happens if I pay late?
Does an operator need a separate license to collect this tax?
Sources & Official References
Other rules in Surprise
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Transient Occupancy Tax in Nearby Cities
How other cities in Maricopa County handle transient occupancy tax.