Tempe, AZ Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Annual license fee
- $250 non-refundable
- Mid-year discount
- 25% off if issued after July 1
- TPT license
- Required before renting
- Renewal deadline
- December 31 annually
- Late penalty
- Up to $1,000 per month
Summary
Tempe charges $250 for every short-term rental license application or annual renewal, a fee cut 25% for licenses first issued after July 1 of a given year, and conditions the license on proof of a valid state transaction privilege tax license before any booking is accepted.
(c)License fee. Every application, including any renewal application, for each short-term rental license under this Article shall be accompanied by a non-refundable fee of two hundred fifty dollars ($250.00). For any new short-term rental license issued by the City on or after July 1 of any calendar year, the short-term rental license for the remaining portion of the calendar year shall be imposed at a twenty-five percent (25%) discount of the annual short-term rental license fee.
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
City Code Section 16A-213 requires an annual short-term rental license before a property is used as a short-term rental, and subsection (c) sets the license fee at a non-refundable $250 for each application, including renewals; a license newly issued on or after July 1 of a calendar year gets a 25% discount on that year's fee since it covers less than the full year. S. Title 42, and Section 16A-215(c) separately makes it unlawful to rent or offer to rent a short-term rental that lacks a valid TPT license.
The license must be renewed by December 31 each year; a renewal not received by January 31 results in termination, after which the property must go through the original application process again as a new applicant, paying the full application and license fee again. Section 16A-213(h) backs the fee requirement with an operating-without-a-license penalty: a short-term rental that has not applied within 30 days of the City opening the application window must immediately cease operating, and the City can impose a civil penalty of up to $1,000 per month against the owner for continued noncompliance after written notice.
Violations & Fines
Operating, advertising, or accepting a booking for a short-term rental without the $250 license or without a valid TPT license is a violation of Section 16A-213 and 16A-215; the City can impose a civil penalty of up to $1,000 per month under Section 16A-213(h) until the owner applies, and representations or online listings referencing the property's Tempe location are treated as prima facie evidence the rental is operating unlawfully.
Frequently Asked Questions
How much does a Tempe short-term rental license cost?
Do I need a state tax license before I can rent short-term in Tempe?
What happens if I miss the December 31 renewal deadline?
What is the fine for renting without paying the license fee?
Sources & Official References
Other rules in Tempe
How Tempe compares: Cities with the Highest Short-Term Rental Taxes·Compare Tempe to another location·View the Arizona short-term rentals overview
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