Short-term rental permit cost in Tucson, AZ

Combined lodging tax: 16.05% of revenue. Charged on what you earn, so it is not in the totals above.

2 figures are not yet verified against the city (STR permit / registration, Inspection). They are left out of the total rather than counted as zero, so the real first-year cost is higher than shown.

Conditions attached

• No citywide cap on the number of short-term rental permits found; Tucson has no STR-specific permit program in the code sections reviewed. State law (A.R.S. 9-500.39(A)) says a city may not prohibit vacation rentals or short-term rentals.
• Arizona state preemption: A.R.S. 9-500.39 bars cities from prohibiting STRs or regulating them by classification, and limits city rules to health and safety, zoning and nuisance rules applied like other property, owner emergency contact, an optional local permit or license (fee capped at actual cost or $250, whichever is less), neighbor notice, displaying the license or TPT number in ads, a liability insurance requirement of at least $500,000 (or booking through an online lodging marketplace with equal coverage), and owner residency only for accessory dwelling units approved on or after 9-14-2024. No Tucson ordinance adopting an STR permit, insurance, inspection, night cap, owner-occupancy or neighbor-notice requirement was found in Tucson Code Chapter 19, Chapter 16 or the zoning pages checked. What does apply: (1) a City of Tucson business license ($25 application fee, $50 annual license fee prorated by start quarter, per Tucson Code 19-39); (2) an Arizona TPT license issued by the Arizona Department of Revenue (Tucson Code 19-320 sets the license fee at $20.00 and renewal at $20.00 for non-residential-rental classes; ADOR profile lists License Fee $20.00 and Renewal Fee $20.00); (3) residential rental registration with the Pima County Assessor (Tucson Code 16-21, civil penalty $1,000 plus $100 per month for non-compliance); (4) lodging tax collection, which online marketplaces such as Airbnb and Vrbo remit on bookings they facilitate, while direct bookings are the host's responsibility. Home-based business: a Home Occupation Form is required with the business license application if the STR is in a residence inside city limits.

Source: https://azdor.gov/model-city-tax-code/city-profile/tucson
Checked 2026-09-23 · Tucson Code Ch. 19 Art. I Div. 5 (Sec. 19-66, transient rental occupational license tax; Ord. 12215 and Ord. 12218, both eff. 3-1-2026); Sec. 19-39 (business license fees); Sec. 19-320 (TPT license fees); Sec. 16-21 (rental registration); A.R.S. 9-500.39 (state limits on STR regulation)