Phoenix vs Sacramento

Arizona Legal with Permit | California Legal with Permit

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

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
Sacramento, California
Status Legal with Permit
Permit Fee $230 initial application; $160 annual renewal; $54 annual Business Operations Tax
Tax Rate 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Contact city for current details

Both cities have comparable STR regulatory environments.

Permits & Licensing

Phoenix charges $250/year (non-refundable) for STR licensing, while Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax. Phoenix renewal is annual, and Sacramento renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

Tax Obligations

In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). In Sacramento, hosts pay 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Sacramento imposes a 90-night annual limit, while Phoenix has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

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

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 →

Sacramento Overview

Host must reside in the property at least 184 nights/year (primary residence requirement); non-primary-residence rentals capped at 90 days/year. Maximum 6 guests at any time.

Contact: Revenue Division, Finance Department — (916) 808-8500

Full Sacramento guide →

Frequently Asked Questions

Is it easier to Airbnb in Phoenix or Sacramento?
Phoenix is classified as "Legal with Permit" while Sacramento is "Legal with Permit." Phoenix's permit fee is $250/year (non-refundable) compared to $230 initial application; $160 annual renewal; $54 annual Business Operations Tax in Sacramento. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Phoenix or Sacramento?
Phoenix charges ~12.57% combined transient lodging tax (state + county + city), while Sacramento charges 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments.
Which city has stricter fines for illegal short-term rentals?
Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Sacramento: Contact city for current details. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Phoenix and Sacramento have day limits for Airbnb?
Phoenix has no annual day limit. Sacramento limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Phoenix or Sacramento?
For new hosts, consider the total cost of entry: Phoenix charges $250/year (non-refundable) for permits with ~12.57% combined transient lodging tax (state + county + city) in taxes. Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax with 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Automatic tax collection in Phoenix and Sacramento makes compliance easier for beginners.