Short-Term Rental Tax in Arizona (AZ)
The state-level tax rate on short-term rentals in Arizona is 11.1% , consisting of 5.6% sales tax and 5.5% lodging tax. Arizona applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Sedona reaches 17.4%. STR operators must register with the state. Arizona charges a 5.6% transaction privilege (sales) tax plus a 5.5% transient lodging tax on rentals of less than 30 days. Cities add their own taxes. The state requires STR operators to obtain a TPT license.
Annual Tax Estimate for Arizona
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Sedona).
| Nightly Rate | Gross Revenue | State Tax (11.1%) | Sedona Tax (17.4%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,631 | $4,136 |
| $150.00/night | $35,550 | $3,946 | $6,203 |
| $200.00/night | $47,400 | $5,261 | $8,271 |
| $300.00/night | $71,100 | $7,892 | $12,407 |
| $500.00/night | $118,500 | $13,154 | $20,678 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Arizona
Local taxes significantly impact the total STR tax burden in Arizona. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 17.4% in Sedona.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Sedona | 6.3% | 17.4% | $34.90 | Very High | Sedona 3.0% sales tax + 3.0% bed tax + 0.35% Yavapai County. STR permits required with caps. |
| Scottsdale | 5.3% | 16.4% | $32.80 | Very High | City of Scottsdale 1.75% sales tax + 3.0% bed tax + 0.55% Maricopa County. Very active STR market. |
| Phoenix | 4.5% | 15.7% | $31.30 | High | City of Phoenix 2.3% sales tax + 1.7% bed tax + 0.55% Maricopa County. |
| Tucson | 4.1% | 15.2% | $30.40 | High | City of Tucson 2.6% sales tax + 1.0% bed tax + 0.5% Pima County. |
How Arizona Compares to Other States
Below is a comparison of Arizona with five states that have similar state-level STR tax rates. This comparison helps illustrate where Arizona stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Arizona (AZ) | 11.1% | 5.6% | 5.5% | Yes | Required |
| Iowa (IA) | 11.0% | 6.0% | 5.0% | Yes | Required |
| New Jersey (NJ) | 11.6% | 6.6% | 5.0% | Yes | Required |
| Massachusetts (MA) | 11.7% | 6.3% | 5.7% | Yes | Required |
| Rhode Island (RI) | 12.0% | 7.0% | 5.0% | Yes | Required |
| West Virginia (WV) | 12.0% | 6.0% | 6.0% | Yes | Required |
Frequently Asked Questions About Arizona STR Taxes
What is the short-term rental tax rate in Arizona in 2026?
The state-level tax rate on short-term rentals in Arizona is 11.1%, consisting of 5.6% sales tax and 5.5% lodging tax. Local taxes can bring the total to 17.4% in cities like Sedona. At $200/night with 65% occupancy, the state-level tax alone is approximately $5,261 per year.
Does Airbnb collect STR taxes in Arizona?
Yes. Airbnb, Vrbo collect state transaction privilege tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Arizona?
Yes. Arizona requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Arizona also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Sedona, Arizona?
The total combined tax rate in Sedona is 17.4%, which includes the 11.1% state rate plus 6.3% in local taxes. Sedona 3.0% sales tax + 3.0% bed tax + 0.35% Yavapai County. STR permits required with caps. At $200/night with 65% occupancy, this amounts to approximately $8,271 per year in taxes.
How much will I owe in STR taxes in Arizona?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (11.1%), a property earning $200/night with 65% occupancy would owe approximately $5,261/year in state taxes alone. In Sedona, the total tax at the same rate would be approximately $8,271/year. Use our STR tax calculator for a customized estimate.
Calculate Your Arizona STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Arizona. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.