Denver vs Phoenix

Colorado Legal with Permit | Arizona Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

Denver, Colorado
Status Legal with Permit
Permit Fee $100 license fee
Tax Rate 10.75% Lodger's Tax (combined city/county/state)
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $999/day for unlicensed operation
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

Both cities have comparable STR regulatory environments.

Permits & Licensing

Denver charges $100 license fee for STR licensing, while Phoenix charges $250/year (non-refundable). Denver renewal is every 2 years, and Phoenix renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

Tax Obligations

In Denver, hosts pay 10.75% Lodger's Tax (combined city/county/state). In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Denver face penalties including $999/day for unlicensed operation. In Phoenix, violations can result in $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Denver Overview

Only primary residences may be used as STRs. Hosts must obtain a Short-Term Rental license. No cap on rental days. Accessory dwelling units on the same lot are also eligible.

Contact: Denver Excise & Licenses — (720) 913-1311

Full Denver 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.

Contact: Phoenix Planning & Development — (602) 534-9723

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Denver or Phoenix?
Denver is classified as "Legal with Permit" while Phoenix is "Legal with Permit." Denver's permit fee is $100 license fee compared to $250/year (non-refundable) in Phoenix. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Denver or Phoenix?
Denver charges 10.75% Lodger's Tax (combined city/county/state), while Phoenix charges ~12.57% combined transient lodging tax (state + county + city).
Which city has stricter fines for illegal short-term rentals?
Denver: $999/day for unlicensed operation. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Denver and Phoenix have day limits for Airbnb?
Denver has no annual day limit. Phoenix has no annual day limit.
Which city is better for first-time Airbnb hosts — Denver or Phoenix?
For new hosts, consider the total cost of entry: Denver charges $100 license fee for permits with 10.75% Lodger's Tax (combined city/county/state) in taxes. Phoenix charges $250/year (non-refundable) with ~12.57% combined transient lodging tax (state + county + city). Automatic tax collection in Denver and Phoenix makes compliance easier for beginners.