Phoenix, AZ Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Base hotel/lodging tax
- 2.8% of gross income
- Additional transient lodging tax
- 3% of gross income
- Combined city tax rate
- 5.8% total
- TPT license required
- State-issued, per § 10-204(B)
- Governing chapter
- City Code Ch. 14, Privilege Taxes
Summary
Phoenix taxes short-term rentals as hotels under City Code Chapter 14: a 2.8% base privilege tax plus an additional 3% transient lodging tax, a combined 5.8% on gross rental income collected by the city.
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
The Phoenix City Code taxes vacation and short-term rentals as "hotels" because the Code's definition of "Hotel" reaches any house or apartment furnishing lodging to a transient for compensation. Section 14-444 sets a 2.8% privilege tax rate on the gross income of that lodging business. Section 14-447 layers an additional 3% tax on top, specifically on gross income from transient lodging. Together the combined city transaction privilege tax on Phoenix short-term rental income is 5.8%, charged on top of Arizona's state and Maricopa County transaction privilege tax and separate from the short-term rental permit fee itself.
Violations & Fines
Renting a short-term rental without a valid, state-issued transaction privilege tax license, or failing to remit the 2.8% hotel tax plus the 3% additional transient lodging tax, violates City Code Ch. 14 and § 10-204(B).
Frequently Asked Questions
Does Phoenix charge extra tax on Airbnb and VRBO rentals?
Is the Phoenix STR tax on top of state tax?
Sources & Official References
Other rules in Phoenix
How Phoenix compares: Cities with the Highest Short-Term Rental Taxes·Compare Phoenix to another location·View the Arizona short-term rentals overview
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Taxes & Fees in Nearby Cities
How other cities in Maricopa County handle taxes & fees.