Santa Fe vs Sedona

New Mexico Legal but Limited | Arizona Legal with Permit

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

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
Sedona, Arizona
Status Legal with Permit
Permit Fee $210/year
Tax Rate 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit

Sedona has more favorable STR regulations overall.

Permits & Licensing

Santa Fe charges $100 one-time application + $325/year permit and business license for STR licensing, while Sedona charges $210/year. Santa Fe renewal is annual, and Sedona renewal is annual. Overall, Sedona has a more permissive regulatory environment (Legal with Permit) compared to Santa Fe (Legal but Limited).

Tax Obligations

In Santa Fe, hosts pay ~8.44% gross receipts tax + 7.1% lodgers' tax. In Sedona, hosts pay 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). 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 Santa Fe face penalties including Up to $500/day for operating without permit. In Sedona, violations can result in $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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 →

Sedona Overview

Sedona straddles Yavapai and Coconino counties, so tax rates vary. Each unit needs its own permit. Special events (weddings, retreats) strictly prohibited. 24/7 complaint hotline: (928) 203-5110.

Contact: Sedona Community Development — (928) 203-5198

Full Sedona guide →

Frequently Asked Questions

Is it easier to Airbnb in Santa Fe or Sedona?
Santa Fe is classified as "Legal but Limited" while Sedona is "Legal with Permit." Santa Fe's permit fee is $100 one-time application + $325/year permit and business license compared to $210/year in Sedona. Overall, Sedona has a more host-friendly regulatory environment.
Which city has higher STR taxes — Santa Fe or Sedona?
Santa Fe charges ~8.44% gross receipts tax + 7.1% lodgers' tax, while Sedona charges 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino).
Which city has stricter fines for illegal short-term rentals?
Santa Fe: Up to $500/day for operating without permit. Sedona: $500 first violation; $1,000 second; $3,500 third; up to $1,000/month without permit. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Santa Fe and Sedona have day limits for Airbnb?
Santa Fe has no annual day limit. Sedona has no annual day limit.
Which city is better for first-time Airbnb hosts — Santa Fe or Sedona?
For new hosts, consider the total cost of entry: Santa Fe charges $100 one-time application + $325/year permit and business license for permits with ~8.44% gross receipts tax + 7.1% lodgers' tax in taxes. Sedona charges $210/year with 13.3%–13.9% combined (varies by county portion — Yavapai vs Coconino). Automatic tax collection in Santa Fe and Sedona makes compliance easier for beginners.