The Complete Arizona Airbnb Host Lodging Tax Guide: Airbnb Arizona Occupancy Tax Breakdown

As an Airbnb host in Arizona, you’re required to collect and remit certain taxes, primarily the Arizona Transaction Privilege Tax (TPT), on short-term rentals, which are stays of less than 30 days. These taxes apply to the listing price, including cleaning fees. If you aren’t completely aware of your responsibilities with regard to these taxes, then you might be surprised when tax season comes. So, here’s everything you need to know about Arizona lodging and occupancy taxes.

State-Wide Tax Requirements for Arizona Airbnb Hosts

Arizona imposes several taxes on short-term rentals, which are applicable to bookings of less than 30 days. The main one that anyone with an STR in Arizona is required to follow is the State Transaction Privilege Tax (TPT). TPT is a state-level tax of 5.5% on gross receipts for short-term lodging businesses.

However, counties and cities may impose additional transient lodging taxes and occupancy taxes. For counties, these taxes can range anywhere from 0.28% to 6.5%, while for cities, they are typically around 1.5% and 6%. If your city or county doesn’t have additional taxes, then you’re only required to remit the TPT state-level tax of 5.5%.

TPT applies to all short-term rental properties in Arizona that are rented for less than 30 consecutive days. This includes vacation homes, guest suites, and entire properties listed on platforms like Airbnb and Vrbo.

Example: If your Airbnb generates $2,000 in monthly revenue from short-term stays.

State TPT (5.5%): $2,000 × 0.055 = $110 per month

County and City-Specific Tax Requirements

Maricopa County

Hosts pay the state TPT (5.5%), county sales tax (0.7%), and some other city-specific transient occupancy taxes.

Example: If your Airbnb generates $4000 in monthly revenue

• State TPT (5.5%): $4000 x 0.055 = $220
• Maricopa County Sales Tax (0.7%): $4000 x 0.07 = $28
• Total Tax (6.2%): $220 + $28 = $248

Phoenix City

Airbnbs and short-term rentals in Phoenix are required to pay an additional 2.3% in city taxes. They are also required to pay an additional 5% as a transient occupancy tax.

Example:

1. Gross Revenue: $3,000
2. State TPT (5.5%): $3000 x 0.055 = $165
3. City TPT (2.3%): $3000 x 0.023 = $69
4. Transient Occupancy Tax (5%): $3000 x 0.05 = $150
5. Total Taxes: $165 + $69 + 150 = $384
6. Net Revenue: $2616

Scottsdale City

Scottsdale has a 1.75% tax rate charged to vacation rentals, transients, and other similar accommodations operating within city limits. Similar to Phoenix, Scottsdale hosts also have an additional 5% in transient occupancy taxes.

Example:

1. Gross Revenue: $2,000
2. State TPT (5.5%): $2000 x 0.055 = $110
3. City TPT (1.75%): $2000 x 0.0175 = $35
4. Transient Occupancy Tax (5%): $2000 x 0.05 = $100
5. Total Taxes: $110 + $35 + 100 = $245
6. Net Revenue: $1755

Pima County

Pima County imposes an additional TPT of 6.1% on transient lodging. This includes short-term rentals listed on platforms like Airbnb, VRBO, and Booking.com. All short-term rental owners in Pima County must also register their property with the Pima County Assessor’s Office using the Arizona Residential Rental Property form before renting.

Example: If your Airbnb generates $3000 in monthly revenue

• State TPT (5.5%): $3000 x 0.055 = $165
• Pima County TPT (6.1%): $3000 x 0.061 = $183
• Total Tax (11.6%): $165 + $183 = $348

Tucson City

Tucson City is located within Pima County. Airbnb hosts and short-term rental owners are already required to pay 11.6% in TPT taxes. However, Tucson City also imposes its own occupancy tax at 6% with an additional $2 per night bed tax. This can lead to relatively larger taxes when renting a home.

Example: A 5-night stay at $200/night.

1. Gross Revenue: $1,000
2. State TPT (5.5%): $55
3. Pima County TPT (6.1%): $61
4. City Occupancy Tax (6%): $60
5. Bed Tax ($2 x 5 nights): $10
6. Total Taxes: $186
7. Net Revenue: $814

Lake Havasu City

Lake Havasu City has a unique Hotel Activity Tax that Airbnb hosts in city limits must pay. It’s a relatively steep tax rate of 10.5% of gross income.

Example:

1. Gross Revenue: $5,000
2. Hotel Activity Tax (10.5%): $525
3. State TPT (5.5%): $275
4. Total Taxes: $800
5. Net Revenue: $4200

Wrapping Things Up

While nobody likes paying taxes, staying informed and compliant with these tax regulations is key to running a successful Airbnb business in Arizona. If your rental is located in one of the counties or cities we’ve mentioned above, make sure to comply with all the unique tax requirements.

Be sure to check for any updates to local laws and visit the official Arizona Department of Revenue website to learn more about your tax duties as an Airbnb host.