Phoenix vs Santa Fe

Arizona Legal with Permit | New Mexico Legal but Limited

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
Santa Fe, New Mexico
Status Legal but Limited
Permit Fee $100 one-time application + $325/year permit and business license
Tax Rate ~8.44% gross receipts tax + 7.1% lodgers' tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $500/day for operating without permit

Phoenix has more favorable STR regulations overall.

Permits & Licensing

Phoenix charges $250/year (non-refundable) for STR licensing, while Santa Fe charges $100 one-time application + $325/year permit and business license. Phoenix renewal is annual, and Santa Fe renewal is annual. Overall, Phoenix has a more permissive regulatory environment (Legal with Permit) compared to Santa Fe (Legal but Limited).

Tax Obligations

In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). In Santa Fe, hosts pay ~8.44% gross receipts tax + 7.1% lodgers' tax. 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 Phoenix face penalties including $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. In Santa Fe, violations can result in Up to $500/day for operating without permit. 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 →

Santa Fe Overview

Residential zone STRs capped at 1,000 citywide permits; one per person; must be 50+ feet from another STR. Rentals limited to once per 7-day period (except Nov 15–Jan 15). Local operator must respond within 1 hour.

Contact: Santa Fe Land Use Dept. — (505) 955-6639

Full Santa Fe guide →

Frequently Asked Questions

Is it easier to Airbnb in Phoenix or Santa Fe?
Phoenix is classified as "Legal with Permit" while Santa Fe is "Legal but Limited." Phoenix's permit fee is $250/year (non-refundable) compared to $100 one-time application + $325/year permit and business license in Santa Fe. Overall, Phoenix has a more host-friendly regulatory environment.
Which city has higher STR taxes — Phoenix or Santa Fe?
Phoenix charges ~12.57% combined transient lodging tax (state + county + city), while Santa Fe charges ~8.44% gross receipts tax + 7.1% lodgers' tax.
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. Santa Fe: Up to $500/day for operating without permit. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Phoenix and Santa Fe have day limits for Airbnb?
Phoenix has no annual day limit. Santa Fe has no annual day limit.
Which city is better for first-time Airbnb hosts — Phoenix or Santa Fe?
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. Santa Fe charges $100 one-time application + $325/year permit and business license with ~8.44% gross receipts tax + 7.1% lodgers' tax. Automatic tax collection in Phoenix and Santa Fe makes compliance easier for beginners.