Austin vs Phoenix
Texas Legal but Limited | Arizona Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Phoenix, Arizona |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $250/year (non-refundable) |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | ~12.57% combined transient lodging tax (state + county + city) |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | No — host must remit | Yes |
| Max Fine Example | $500–$2,000/violation; license revocation possible | $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations |
| Verdict | Phoenix has more favorable STR regulations overall. | |
Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations
Phoenix has more favorable STR regulations overall.
Austin Overview
Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.
Full Austin guide →Phoenix Overview
Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.
Full Phoenix guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Phoenix?
Austin is classified as "Legal but Limited" while Phoenix is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $250/year (non-refundable) in Phoenix.
Which city has higher STR taxes — Austin or Phoenix?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Phoenix charges ~12.57% combined transient lodging tax (state + county + city). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations.