Arizona TPT for short-term rentals: what owners need to know

Every rental needs a TPT license

Short-term lodging (stays under 30 days) is subject to Arizona’s transaction privilege tax. Owners get a TPT license from the Arizona Department of Revenue and list each rental address on it.

Platform bookings vs. direct bookings

• Airbnb, Vrbo and other “online lodging marketplaces” collect and remit the TPT on bookings made through them. You still report that income and deduct it (deduction code 775).
• Direct bookings are not deducted: the owner or manager collects and remits the tax, usually monthly.
• Business codes: 025 (transient lodging) for state and county, 044 (hotel/motel) for cities.

Combined rates vary by city

Combined state, county and city rates on short-term lodging are roughly 12–14% in the Valley. Tucson added a 10% city tax on short-term rentals from March 1, 2026. Confirm your exact rate on azdor.gov.

County registration

Arizona also requires residential rental properties to be registered with the county assessor (A.R.S. § 33-1902). Several cities ask for proof when you apply for the permit.