Sedona is one of Arizona’s premier vacation destinations — red rock views, wellness tourism, and near-perfect weather year-round. Like Phoenix, it operates under Arizona state law that protects short-term rental rights. The licensing process is simple: a $210/year city permit (as of January 2025), an Arizona TPT license, and that’s it. But starting January 1, 2026, late renewal fees kick in — so don’t let your permit lapse.
📋 Sedona STR Permit — 2026 At a Glance
| Permit Name | City of Sedona Short-Term Rental Permit |
| Application Fee | $210 (effective January 2025) |
| Annual Renewal | $210 annually |
| Processing Time | 1–2 weeks |
| Primary Residence Only? | Yes |
| Licensing Difficulty | Easy |
Do You Need a License to Short-Term Rent in Sedona?
Sedona’s STR permit program is administered through the City of Sedona Community Development Department. The annual fee was updated to $210 effective January 2025. Each dwelling unit — including accessory dwelling units (ADUs) — requires its own separate permit. An Arizona Transaction Privilege Tax (TPT) license is required before applying for the city permit. Starting January 1, 2026, the city began assessing late fees for permits not renewed on time: $50 for permits 2–90 days late, and $100 for permits more than 90 days late. This makes timely renewal critical.
How to Get a Sedona Short-Term Rental Permit: Step by Step
- Obtain an Arizona Transaction Privilege Tax (TPT) license through the Arizona Department of Revenue at azdor.gov if you don’t already have one.
- Apply for a City of Sedona Short-Term Rental Permit through the city’s online portal at sedonaaz.gov. Include your property address, TPT license number, and emergency contact information.
- Pay the $210 annual permit fee.
- Display your permit number inside the property and on all listing platform advertisements.
- If you have multiple units on one property (e.g., a house and an ADU), apply for a separate permit for each unit.
- Renew each year before the permit anniversary date to avoid late fees ($50 for 2–90 days late; $100 for 90+ days late).
Sedona Short-Term Rental Fees (2026)
| Fee | Amount | Notes |
|---|---|---|
| City STR Permit | $210 | Annual (per unit) |
| Arizona TPT License | $12 | Annual (AZ DOR) |
| Late fee (2–90 days) | $50 | If renewal is late |
| Late fee (90+ days) | $100 | If renewal is very late |
Late fees apply starting January 1, 2026. Set a calendar reminder at least 30 days before your permit anniversary date to ensure timely renewal.
Key Rules & Restrictions for Sedona Hosts
- Each dwelling unit requires its own individual permit — ADUs cannot operate under the main house’s permit.
- Permit number must be posted inside the property and on all listing platforms.
- $500,000 minimum liability insurance is required (Arizona state requirement).
- Neighbor complaints: two verified violations within 12 months trigger permit suspension; three verified violations trigger revocation.
- Occupancy limits must be disclosed on listing platforms.
- Late fees apply for renewals submitted after the permit anniversary date (starting 2026).
Taxes Short-Term Rental Hosts Owe in Sedona
Arizona state TPT for transient lodging: 5.5%. Yavapai County excise tax: 0.15%. City of Sedona privilege tax: 3%. Total: approximately 8.65%. Major platforms collect and remit these taxes automatically for Sedona bookings.
Penalties for Operating Without a Permit in Sedona
Operating without a permit: $1,000 first offense, $3,500 second offense within 24 months. Late renewal fees: $50 (2–90 days late) or $100 (90+ days late). Two verified neighbor complaints in 12 months: suspension. Three verified complaints: revocation.
How HostStarter Handles Sedona STR Compliance
Keeping pace with Sedona’s permit requirements — renewals, inspections, tax remittance, and ordinance updates — is a significant ongoing commitment. HostStarter’s full-service property management includes complete compliance handling: we track deadlines, coordinate inspections, ensure your listing always displays a valid permit number, and alert you to regulatory changes before they impact your revenue.
Get a free Sedona revenue estimate from HostStarter →
Frequently Asked Questions
Do I need a permit to run an Airbnb in Sedona?
Yes. Sedona requires a City of Sedona Short-Term Rental Permit ($210/year) and an Arizona TPT license. Each separate dwelling unit on a property requires its own permit.
How much does a short-term rental permit cost in Sedona?
The city permit is $210/year per unit. The Arizona TPT license is $12/year. Total first-year cost is approximately $222 per unit.
How long does it take to get an STR license in Sedona?
Most Sedona STR permit applications are processed within 1–2 weeks.
What taxes do Airbnb hosts owe in Sedona?
Sedona hosts owe Arizona state TPT (5.5%), Yavapai County tax (0.15%), and city privilege tax (3%) — totaling approximately 8.65%. Major platforms collect and remit these automatically.
What are the penalties for operating an unlicensed Airbnb in Sedona?
Operating without a permit: $1,000 first offense, $3,500 second offense within 24 months. Starting January 1, 2026, late renewals trigger fees of $50 (2–90 days late) or $100 (90+ days late). Two verified complaints lead to suspension; three lead to revocation.