What are the short-term rental rules and taxes in Sedona, Arizona?

Sedona lets you run a short-term rental, and Arizona law limits how far the city can regulate one. The city can't ban or cap rentals, but it does require a yearly permit, and it fines and suspends owners who break the rules. The city also sits in two counties, so your tax rate depends on which side of the county line your home is on. This page covers what the city, the Arizona Department of Revenue (ADOR) and the platforms say, for stays of less than 30 days.

Checked on Nov 4, 2026. This page reports what the official pages said that day. Confirm with the city before you list. This is not legal or tax advice; for your own situation, ask the city, ADOR or a CPA.

Do you need a permit or registration

Yes. Since Feb 15, 2023, Sedona City Code Section 5.25.030 (opens in a new tab) bars anyone from advertising or operating a short-term rental without a valid annual city permit. The city's vacation rental FAQ (opens in a new tab) says renting even one day a year needs a TPT license and a permit. Rentals of 30 days or more need no permit, and the listing must show a 30-day minimum.

The city's property owner responsibilities page (opens in a new tab) lists what you need before renting:

1. Arizona TPT license from ADOR. A unit without one may not be rented or offered for rent.
2. City permit for each unit. The fee is $210 per unit per year, nonrefundable and nontransferable.
3. Contacts: owner, owner's designee and an emergency contact.
4. Liability insurance of at least $500,000 in the aggregate per unit.
5. Building approvals: any required building safety approvals and permits (Community Development, 928-282-1154).
6. Neighbor notice to each single-family property next to you, directly across the street and diagonally across. It must give the rental address, your city permit number and the emergency contact's name, physical address, email and 24-hour phone number. Send it by certified mail with return receipt, or deliver it by hand.

ADOR's short-term lodging page (opens in a new tab) adds a seventh step: every Arizona county requires residential rentals to be registered with the County Assessor. Register with Yavapai or Coconino County, depending on where your home is.

Applying and renewing. Permits are issued through the city's GovOS/MUNIRevs system. The FAQ says a permit runs one year from the date it became active, and you get an expiration notice by email 60 days ahead.

• The city's renewal guide (opens in a new tab) (Dec 2025) says renewals with a wrong or incomplete TPT license number are denied. TPT numbers have 8 digits and are separate from your city permit number.
• A June 24, 2026 city column (opens in a new tab) says late renewal fees took effect Jan 1, 2026: $50 for 1 to 90 days late and $100 for more than 90 days late.
• The same column counted 1,440 permitted units on 1,300 parcels.

Ads. The city requires your permit number on every ad and listing. ADOR requires your TPT license number on any advertising too.

Outside city limits. The city permit covers homes inside Sedona's limits. If your home is in an unincorporated area nearby, the city's pages don't apply; ask Yavapai or Coconino County about county rules.

Occupancy and sales taxes

Arizona taxes lodging through its transaction privilege tax (TPT), which works like a sales tax charged to the business. Three layers apply in Sedona. The rates below are from ADOR's rate table effective Nov 1, 2026 (opens in a new tab) and its Sedona city profile (opens in a new tab).

Yavapai side: 6.325% + 3.50% + 3.50% = 13.325%. Coconino side: 6.90% + 3.50% + 3.50% = 13.90%. The city's FAQ gives the same two totals.

A few notes on those numbers:

• ADOR's table shows the state and county lodging rate as one figure per county. Airbnb's Arizona article lists the state part alone as 5.5%. ADOR's table doesn't split out the county part.
• ADOR's Sedona profile says the bed tax has been 3.50% since Jan 1, 2014. One amendment line in the profile gives a 2028 date for the city's 3.50% rate, which conflicts with the rate history on the same page. The Nov 1, 2026 table shows 3.50% for both city codes. If you file direct bookings, confirm with Sedona's Finance Department (928-204-7185).
• ADOR says all income tied to the rental is taxable. Cleaning, cancellation and deposit amounts count once they're no longer refundable.
• Your county matters. Check your parcel with the county assessor before you set tax rates for direct bookings.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's Arizona tax article (opens in a new tab) says it collects and remits, on the listing price including any cleaning fee:

• Arizona TPT at 5.5%, on stays of 29 nights or fewer
• County excise tax (varies by county), on stays of 29 nights or fewer
• Local taxes such as city TPT, transient lodging, bed or hotel-motel tax (varies by city). It says city TPT typically applies regardless of length of stay

The article doesn't name Sedona, Yavapai County or Coconino County. It says hosts must assess all other tax obligations.

Vrbo. Vrbo's US tax list (states A to E) (opens in a new tab) shows it collects and remits Arizona TPT, county excise tax and local transient occupancy taxes statewide for stays under 30 nights, starting Jan 1, 2019. It lists no rates and doesn't name Sedona.

What ADOR says. On its short-term lodging page, ADOR says the online lodging marketplace "is responsible for collecting and remitting the TPT due from the rental income."

What stays your job:

• File your TPT return on time, even when the platforms paid all the tax. ADOR says to report the platform income under the state, county and city codes, then deduct 100% of it with deduction code 775.
• Keep Form 5018. ADOR says the platform should give you this certificate confirming it collects the tax. Keep it.
• Pay all three layers yourself on direct bookings and on any channel that doesn't remit for you. The city's owner page says you must collect and pay sales and bed tax on time, or make sure a third party does.
• A property manager can file for you, but ADOR says the owner stays liable.

Filing and registering for the taxes you must file yourself

• Register and file at AZTaxes.gov, the portal ADOR names for licensing, filing and paying. ADOR says a seasonal TPT license stays active until you cancel it.
• Codes on the return: 025 for state and county transient lodging, 044 for the city hotel tax and 144 for the city additional hotel tax. Sedona's city code is SE. The county code is YAV or COC, depending on where the home is.
• Frequency: ADOR's filing frequency page (opens in a new tab) ties it to your estimated yearly combined state, county and city TPT. Under $2,000 files annually, $2,000 to $8,000 files quarterly and over $8,000 files monthly. Businesses active 8 months or less a year can file seasonally.
• Due dates: Tax is due on the 20th of the month after the period ends. ADOR counts electronic returns and payments on time if it receives them by the last business day of that month.
• Zero returns: File a $0 return for any period with no rentals. ADOR says so on both pages.
• Questions: ADOR's short-term rental line is (602) 716-7368.

The city permit and the TPT license are separate. The city issues one and ADOR issues the other, and you need both.

Other local rules

What state law lets the city do. A.R.S. 9-500.39 (opens in a new tab) bars Arizona cities from banning short-term rentals or regulating them by use or occupancy, except as the statute allows. Cities can require:

• A permit, with a fee capped at the lesser of cost or $250. Sedona's $210 fee is under that cap.
• An emergency contact, a neighbor notice and $500,000 in liability coverage
• The permit number on every ad
• Sex offender background checks, waived when the booking platform runs them

They can also ban nonresidential uses such as special events, retail and banquet space. The city's FAQ adds that no Arizona city or town can currently cap the number of short-term rentals.

Emergency contact. Under Section 5.25.040 (opens in a new tab), your contact must respond within 60 minutes to complaints the police pass on, and within 24 hours to all other complaints. They can respond in person, by phone or by email. A late response is a violation, and the owner is responsible. Tell the city in writing about changes to the contact's details within 10 days, and update them in your GovOS/MUNIRevs account. The city's 24/7 STR hotline for neighbors is 928-203-5110, per the June 2026 column.

Background checks. The city's owner page says to run a sex offender check on guests at least 24 hours before check-in, or get proof that the booking platform ran one. Keep a full copy for at least 12 months after the booking date and give it to the city on request. Registered sex offenders may not rent or stay in the unit.

Events. Events are banned, including weddings, receptions, retreats, conferences, workshops and trainings. Your online listing must say so, and you must tell guests. The full list is in Sedona Land Development Code Section 9.4. Violations can bring citations or a one-year permit revocation. See how to prevent parties.

Posted notice. Post a laminated or shielded notice within 10 feet of the main entrance, in bold 14-point type or larger. It must show where the fire and life-safety equipment is and give the city's noise and waste rules. The emergency info sign and your house manual can carry the same details.

Trash.

• Put cans at the curb no earlier than noon the day before pickup.
• Take them off the street by 11:59 pm on pickup day.
• Bag and tie trash (clean recyclables excepted) and keep lids closed.

Noise. The city's pages set no decibel limit or quiet hours. Section 5.25.050 bans any use that substantially disturbs neighbors' quiet enjoyment, such as excessive noise or traffic or crowds blocking the street. A noise monitor helps you hear about problems early; follow Airbnb's camera and noise monitor rules.

Occupancy and parking. The city's STR pages and code sections we read set no guest limit or parking count. Check the zoning and building rules for your home, or ask Community Development.

Penalties. Under Section 5.25.120 (opens in a new tab), a violation is a misdemeanor and a civil offense, with a $500 minimum civil penalty. For verified violations at the same property within 12 months:

• First: up to $500 or one night's advertised rent, whichever is greater
• Second: up to $1,000 or two nights' rent
• Third and later: up to $3,500 or three nights' rent

The city can also charge up to $1,000 a month if you don't apply for a permit within 30 days of written notice, and up to $1,000 for every 30 days the emergency contact requirement isn't met. Online listings are taken as evidence that a home is operating as a rental. Permits can be suspended for up to 12 months under Section 5.25.110, and the FAQ says a suspension lasts one year. The June 2026 column adds that the council approved suspensions for falsified information on an application or renewal.

HOAs. The FAQ says the city doesn't enforce or keep copies of HOA rules. If you have an HOA, check whether it allows short-term rentals.

Where to check for changes

• Sedona property owner responsibilities (opens in a new tab) and vacation rental FAQ (opens in a new tab)
• Sedona City Code Chapter 5.25 (opens in a new tab)
• ADOR short-term lodging (opens in a new tab) and TPT rate tables (opens in a new tab), updated when rates change
• A.R.S. 9-500.39 (opens in a new tab) for what cities may and may not require
• Airbnb Arizona taxes (opens in a new tab) and Vrbo tax list (opens in a new tab)

For another Arizona market, see Scottsdale's rules and taxes. For income tax, see short-term rental taxes for US hosts. To see what a stay leaves you after platform fees, use the Airbnb fee calculator.