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Arizona Statewide Rule

Arizona Transaction Privilege Tax on Short-Term Rentals

Heavy RestrictionsApplies statewide across Arizona (2026)

Key Facts

State TPT rate
5.5% transient lodging
License required
Yes, ADOR TPT license
Statute
A.R.S. Title 42, Ch. 5
Marketplace collection
Permitted under A.R.S. 42-5005
Last verified: August 21, 2026Source: Arizona State Legislature

Summary

Arizona requires short-term rental operators to license with the Department of Revenue and remit transaction privilege tax plus any applicable county and city transient lodging taxes statewide.

5. To require the owner of a vacation rental or short-term rental to obtain and maintain a local regulatory permit or license. As a condition of issuance of a permit or license, the application for the permit or license may require an applicant to provide only the following: (a) The name, address, telephone number and email address for the owner or owner's agent. (b) The address of the vacation rental or short-term rental. (c) Proof of compliance with section 42-5005. (d) Contact information required pursuant to paragraph 4 of this subsection. (e) Acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances. (f) A fee not to exceed the actual cost of issuing the permit or license or $250, whichever is less.

Source: Arizona State LegislatureView official code

Full Breakdown

Under A.R.S. Title 42, Chapter 5, short-term rentals of less than 30 days are subject to the transient lodging classification of the transaction privilege tax (TPT). Operators must obtain a TPT license through Arizona Department of Revenue, collect and remit state TPT, county excise tax, and any local transient occupancy tax. Online lodging marketplaces like Airbnb may collect and remit on the operator's behalf, but the operator remains licensed.

Violations & Penalties

Failure to license or remit TPT may result in penalties up to 25 percent of tax due plus interest and potential criminal charges.

Frequently Asked Questions

Do Arizona Airbnb hosts need a TPT license?
Yes. Even when Airbnb collects taxes, hosts must register for an Arizona TPT license. Operators advertising STRs without a posted TPT number may face fines.
What taxes apply to Arizona vacation rentals?
State TPT transient lodging at 5.5 percent, county excise taxes, and local bed taxes that vary by city. Total combined rates often exceed 12 percent.

Sources

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