Regulatory Overview
State STR LicenseNot Required
State Preemption LawYes — Protects Hosts
Permit RequiredSTATE_TPT
Owner-Occupied RequiredNo
Last Verified2026-02
Official source: https://azdor.gov/transaction-privilege-tax
Tax Breakdown
5.5%
State Sales Tax
5.5%
Lodging / TOT
Est. Total Tax Burden~12%
Total is an estimate. Local taxes, county surcharges, and platform fees vary. Always verify with your local tax authority.
Key Rule Summary
2016 state preemption law (HB2672) prevents cities and towns from banning STRs outright. Transaction Privilege Tax license required. Hosts must notify neighbors in some jurisdictions.
Major City Rules
4 cities tracked
Scottsdale
Host Friendly
TPT license required, no ban allowed under state law
Sedona
Moderate
City requires STR permit, some neighborhoods restricted
Flagstaff
Moderate
STR permit required, zone-specific restrictions
Phoenix
Host Friendly
TPT license required, no additional STR permit
Housing Market Data — US Census ACS
ACS 5-Year 2022
3,097,768
Total Housing Units
11.6%
Vacancy Rate
66.3%
Owner-Occupied
33.7%
Renter-Occupied
182,078
Seasonal/Vacation Units
5.9%
Seasonal Unit %
Source: US Census Bureau ACS 5-Year Estimates · Seasonal/vacation units are a proxy for STR-receptive housing stock.