Arizona STR Tax Rates Explained — TPT, City, and County (Scottsdale & Phoenix, 2026)

If you operate a short-term rental in Arizona, you're subject to multiple layers of tax on every booking under 30 days. Understanding what those layers are — and who collects them — is one of the most important compliance fundamentals for any STR operator in this market.

Here's a complete breakdown for the two primary markets Barrett Advisories serves.

The Four Tax Layers

Every short-term rental stay in Arizona is subject to up to four separate taxes, all remitted through AZTaxes.gov on a monthly basis:

The Arizona State TPT — Transaction Privilege Tax — applies at 5.5% to all transient lodging under 30 days. This is filed under business code 025.

The Maricopa County Excise Tax applies at approximately 0.28% to 0.77% depending on location within the county. This is remitted alongside your state TPT filing through AZTaxes.gov.

The City Privilege Tax is levied by each municipality. The rate varies by city and has changed in several markets effective July 1, 2025.

The Transient Lodging Tax is an additional city-level tax on short-term stays. Both Scottsdale and Phoenix levy this at 5.0%.

Scottsdale Combined Rate (Effective July 1, 2025)

State TPT: 5.5% Maricopa County excise: approximately 0.5% Scottsdale city privilege tax: 1.7% (reduced from 1.75% effective July 1, 2025) Scottsdale transient lodging tax: 5.0% Combined approximate total: 12.5% to 13.5%

Phoenix Combined Rate (Effective July 1, 2025)

State TPT: 5.5% Maricopa County excise: approximately 0.5% Phoenix city privilege tax: 2.8% (increased from 2.3% effective July 1, 2025) Phoenix transient lodging tax: 5.0% Combined approximate total: 13.5% to 14.5%

If You're on Airbnb or VRBO

Online lodging marketplaces like Airbnb and VRBO collect and remit TPT on your behalf for platform bookings. However, you are still required to hold your own TPT license and file monthly — reporting the income and applying deduction code 775 for the platform-collected portion. Operators who book guests directly outside the platform must collect and remit all taxes themselves. If you use a property management software like Guesty or HostAway then you might be required to use a payment processor for VRBO. In that situation you would be required to collect and remit those taxes without using the deduction code.

An Important 2025 Change

Effective January 1, 2025, the residential rental TPT on long-term stays of 30 days or more (business code 045) was eliminated. If you previously held a TPT license with only business code 045, that license was automatically canceled on December 31, 2024. Short-term rentals under 30 days remain fully taxable under business code 025 — this change only affects long-term stays.

Filing Deadlines

TPT is due on the 20th of the month following the reporting period. Late filings and payments accrue penalties and interest quickly. Barrett Advisories handles monthly TPT filing for every property in a managed portfolio, monitors rate changes proactively, and notifies clients in advance of any changes that affect their portfolio.

Questions About Your STR Tax Obligations?

Schedule a free consultation at barrettadvisories.com. We work with STR managers across Scottsdale, Phoenix, and the broader Maricopa County market.