Palm Springs vs Phoenix

California Legal but Limited | Arizona Legal with Permit

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

Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension
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.

Palm Springs Overview

Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.

Full Palm Springs 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 Palm Springs or Phoenix?
Palm Springs is classified as "Legal but Limited" while Phoenix is "Legal with Permit." Palm Springs's permit fee is $1,072/year Vacation Rental Certificate; $642/year Junior Certificate compared to $250/year (non-refundable) in Phoenix.
Which city has higher STR taxes — Palm Springs or Phoenix?
Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID), 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?
Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations.