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Arizona · Tempe

Tempe

city Allowed with registration Verified · last verified 2026-07-15

Short-term rentals (residential rentals of less than 30 days) are LEGAL in Tempe but require a City of Tempe Short-Term Rental License for each unit before it is offered for rent. The framework is Tempe Ordinance No. O2023.01, which added a new Article XI (Short-Term Rentals and Vacation Rentals, Secs. 16A-211 through 16A-224) to Chapter 16A of the Tempe City Code; it was PASSED AND ADOPTED January 5, 2023 and became effective March 6, 2023, enacted under Arizona's state-preemption statute A.R.S. § 9-500.39 (which bars cities from prohibiting STRs). The annual license is issued by Tempe's Financial Services (Tax & License); every application, including any renewal, must be accompanied by a non-refundable $250 fee per property, reduced by a 25% discount (to $187.50) for a new license issued on or after July 1 of a calendar year. Licenses expire annually on December 31; a license not renewed within 30 days after expiration is deemed cancelled and subject to the original application process. Core mandatory conditions: a valid Arizona transaction privilege tax (TPT) license from the AZ Dept. of Revenue (proof required at application; an STR lacking a valid TPT license may not be rented); evidence the property is registered with the Maricopa County Assessor's Office per A.R.S. § 33-1902 and Tempe City Code § 21-25 (a rental of only a room or rooms within a property is exempt from this registration requirement); liability insurance of at least $500,000 in the aggregate, or coverage through an online lodging marketplace providing equal or greater primary coverage (proof within 30 days of obtaining the license); a designated 24-hour emergency point of contact who must respond within 30 minutes when public-safety personnel are dispatched and within 24 hours for non-emergency complaints; written neighbor notification, before offering the rental for rent for the first time, to each single-family residential property adjacent to, directly across from, and diagonally across the street from the property (or, in a multi-family building, all units on the same floor), including the city license number, property address, and the emergency contact's information; display of the city-issued STR license number on every advertisement; and a national sex-offender (NSOPW / U.S. DOJ) background check on the person booking the rental no later than 24 hours before every stay, with the record retained 12 months after the booking date (satisfied/waived if the online lodging marketplace performs the check). Because of state preemption there is no primary-residence requirement, no license or occupancy cap, no annual night cap, and no outright zoning ban; however, nonresidential uses, special events requiring a permit, retail/restaurant/banquet uses, sober-living homes, adult-oriented businesses, and similar uses at an STR are prohibited. The City must issue or deny a complete application within 7 business days. Tempe's transient-lodging tax is 6.8% of gross rental income (1.8% city TPT + 5.0% additional transient-lodging tax); combined with the Arizona state and Maricopa County transient-lodging tax (reported as 7.27% by industry/tax-guide sources) the total is approximately 14.07%.

Not legal advice. Last verified 2026-07-15 · sources linked below.

Requirements checklist

  • city City of Tempe Short-Term Rental License Required
    Fee: $250 / annual · Renewal: Renewed for successive annual periods; licenses expire annually on December 31. A license not timely renewed is treated as operating without a license; if not renewed within 30 days after expiration it is deemed cancelled and subject to the original application process. · Applies to: Every owner of a short-term/vacation rental (residential rental of less than 30 days); prior to use of a property as a short-term rental the owner must obtain an annual license from the City; one application and fee per property · official page ↗
  • state Arizona Transaction Privilege Tax (TPT) License Required
    Fee: — · Renewal: Per ADOR (annual TPT license renewal). · Applies to: All STR/vacation rental owners; proof of a valid TPT license must be submitted with the city license application. An STR lacking a valid TPT license may not be rented or offered for rent. · official page ↗
  • county Maricopa County Assessor Residential Rental Registration Required
    Fee: — · Renewal: — · Applies to: The STR property must be registered with the Maricopa County Assessor's Office; evidence required with the city license application. A short-term rental of only a room or rooms within a property is EXEMPT from this requirement. · official page ↗
  • city Liability insurance ($500,000 minimum) Required
    Fee: — · Renewal: — · Applies to: Owner must maintain liability insurance of at least $500,000 in the aggregate, or provide evidence each transaction is through an online lodging marketplace providing equal or greater primary coverage · official page ↗
  • city 24-hour emergency point of contact Required
    Fee: — · Renewal: — · Applies to: Owner must designate an individual with a 24-hour telephone number as emergency point of contact; must be available by phone or text and respond within 30 minutes when public-safety personnel are dispatched, and within 24 hours for non-emergency complaints · official page ↗
  • city Neighbor notification Required
    Fee: — · Renewal: — · Applies to: Prior to offering the STR for rent for the first time, the owner/designee must give written notice to each single-family residential property adjacent to, directly across from, and diagonally across the street from the property (or, in a multi-family building, all units on the same floor). Must include the city license number, property address, and the emergency contact's name/physical address/email/24-hour phone. Any change to that information requires additional neighbor notification not later than 5 days before the change. · official page ↗
  • city Display city STR license number on advertisements Required
    Fee: — · Renewal: — · Applies to: The owner/designee must display the city-issued short-term rental license number on each advertisement for the STR. (Corrected: the ordinance requires only the CITY license number on ads; it does not require the TPT number on ads.) · official page ↗
  • city Sex-offender background check on booking guest Conditional
    Fee: — · Renewal: — · Applies to: No later than 24 hours before every stay, the owner/designee must run a background check on the person booking the rental via the online national sex offender public website operated by the U.S. Department of Justice (NSOPW, nsopw.gov), and retain the record 12 months after the booking date. Satisfied/waived if the online lodging marketplace performs the check. · official page ↗

Taxes

TaxRateAdministered byAirbnb remitsVrbo remits
City of Tempe transaction privilege tax (TPT) — — — —
City of Tempe additional transient lodging (hotel) tax — — — —
Arizona state + Maricopa County transient lodging tax — — — —
Total combined lodging tax on Tempe short-term rentals — — — —

Operating rules

Primary residence
No
Min stay (nights)
—
Max nights / year
—
Max occupancy
—
Zoning-restricted
—
Cap on licenses
—

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Frequently asked questions

Is Airbnb legal in Tempe?
Short-term rentals (residential rentals of less than 30 days) are LEGAL in Tempe but require a City of Tempe Short-Term Rental License for each unit before it is offered for rent. The framework is Tempe Ordinance No. O2023.01, which added a new Article XI (Short-Term Rentals and Vacation Rentals, Secs. 16A-211 through 16A-224) to Chapter 16A of the Tempe City Code; it was PASSED AND ADOPTED January 5, 2023 and became effective March 6, 2023, enacted under Arizona's state-preemption statute A.R.S. § 9-500.39 (which bars cities from prohibiting STRs). The annual license is issued by Tempe's Financial Services (Tax & License); every application, including any renewal, must be accompanied by a non-refundable $250 fee per property, reduced by a 25% discount (to $187.50) for a new license issued on or after July 1 of a calendar year. Licenses expire annually on December 31; a license not renewed within 30 days after expiration is deemed cancelled and subject to the original application process. Core mandatory conditions: a valid Arizona transaction privilege tax (TPT) license from the AZ Dept. of Revenue (proof required at application; an STR lacking a valid TPT license may not be rented); evidence the property is registered with the Maricopa County Assessor's Office per A.R.S. § 33-1902 and Tempe City Code § 21-25 (a rental of only a room or rooms within a property is exempt from this registration requirement); liability insurance of at least $500,000 in the aggregate, or coverage through an online lodging marketplace providing equal or greater primary coverage (proof within 30 days of obtaining the license); a designated 24-hour emergency point of contact who must respond within 30 minutes when public-safety personnel are dispatched and within 24 hours for non-emergency complaints; written neighbor notification, before offering the rental for rent for the first time, to each single-family residential property adjacent to, directly across from, and diagonally across the street from the property (or, in a multi-family building, all units on the same floor), including the city license number, property address, and the emergency contact's information; display of the city-issued STR license number on every advertisement; and a national sex-offender (NSOPW / U.S. DOJ) background check on the person booking the rental no later than 24 hours before every stay, with the record retained 12 months after the booking date (satisfied/waived if the online lodging marketplace performs the check). Because of state preemption there is no primary-residence requirement, no license or occupancy cap, no annual night cap, and no outright zoning ban; however, nonresidential uses, special events requiring a permit, retail/restaurant/banquet uses, sober-living homes, adult-oriented businesses, and similar uses at an STR are prohibited. The City must issue or deny a complete application within 7 business days. Tempe's transient-lodging tax is 6.8% of gross rental income (1.8% city TPT + 5.0% additional transient-lodging tax); combined with the Arizona state and Maricopa County transient-lodging tax (reported as 7.27% by industry/tax-guide sources) the total is approximately 14.07%.
Do I need a license or registration for a short-term rental in Tempe?
Yes — Tempe requires: City of Tempe Short-Term Rental License; Arizona Transaction Privilege Tax (TPT) License; Maricopa County Assessor Residential Rental Registration. See the requirements checklist for fees, renewal, and official links.
What taxes apply to short-term rentals in Tempe?
City of Tempe transaction privilege tax (TPT), City of Tempe additional transient lodging (hotel) tax, Arizona state + Maricopa County transient lodging tax, Total combined lodging tax on Tempe short-term rentals. Use the lodging-tax estimator on this page for a specific stay.

Official sources

Related coverage

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Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.