Do I need a permit for short-term rentals in Sedona?

**Yes**, Sedona requires a Short-Term Rental Permit to operate legally. You need to apply for this permit through the city and renew it annually. The permit ensures compliance with local regulations, including health, safety, and tax requirements. Operating without a permit can result in significant fines.

What is the TOT tax rate in Sedona, AZ?

**6.5% TOT** is the current transient occupancy tax rate for short-term rentals in Sedona. You are responsible for collecting this tax from guests and remitting it to the city. Ensure you register with the state for a TPT license to properly handle tax payments related to your rental activities.

Are short-term rentals allowed in Sedona?

**Yes**, short-term rentals are allowed in Sedona, but they are strictly regulated. You must obtain a permit, notify your neighbors, and maintain adequate liability insurance. The city actively enforces these regulations to ensure the safety and quality of life for residents. Failure to comply can result in daily fines.

How much does an STR permit cost in Sedona?

**$250** is the annual fee for a Short-Term Rental Permit in Sedona. You need to renew this permit each year to continue operating your short-term rental legally. This fee helps the city cover the costs of administering and enforcing its short-term rental regulations, ensuring community standards.

Can renters host on Airbnb in Sedona?

**No**, tenants are not allowed to host on Airbnb in Sedona, as the permit is only available to property owners. The City of Sedona requires that the property owner apply for and maintain the short-term rental permit. Subletting or unauthorized rental activity can result in significant penalties.

Sedona, AZ Short-Term Rental Laws &...

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Verified: Jan 30, 2026

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Summary

The City of Sedona strictly regulates short-term rentals under Chapter 5.25, requiring an annual $250 permit, neighbor notifications, and $500,000 in liability insurance. While Arizona state law prevents cities from banning STRs entirely, Sedona aggressively enforces health, safety, and tax compliance with significant daily fines for violations.

Restriction Level

⚠️

Moderate

Score: 21 (restrictive)

Why this classification:

•Standard permit fee: $250
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in the City of Sedona, you must first get a state tax license (TPT) and then apply for a specific Sedona STR permit which costs $250 per year. You are required to notify your neighbors that you are hosting and provide them with a 24/7 emergency contact number. Your property must have at least $500,000 in liability insurance and you cannot use an ADU (like a guest house) built after 2017 as a rental. You must also display your permit number on all listing sites like Airbnb and VRBO.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$250

Processing Time

10-15 business days

7 Things Hosts Often Miss

1.Verify if you are in the City of Sedona or Unincorporated County; city limits have much stricter permit rules.
2.Accessory Dwelling Units (ADUs) built after 2017 cannot be used as STRs.
3.You must notify all neighbors (adjacent and across the street) BEFORE applying.
4.Emergency contacts must respond within 60 minutes for physical issues and 30 minutes for police issues.
5.The 6.5% total city tax is composed of a 3.5% TPT and a 3.0% Bed Tax.
6.State law prohibits the city from limiting the number of nights, but the city can fine you $500+ for noise or trash violations.
7.You must provide proof of $500k liability insurance specifically covering lodging use.

Regulation Details

Eligibility(6)

•Sedona: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Sedona: ADU Restriction: Any Accessory Dwelling Unit (ADU) built after Sept 14, 2024, cannot be an STR unless it's your primary residence.
•Sedona does NOT require the property to be a primary residence. Investment properties are allowed.

Requirements(17)

•Sedona STR warning: No Special Events: Sedona strictly prohibits using STRs for weddings, retreats, or large organized events.
•Sedona requires STR registration. The permit is called "Short-Term Rental Permit". Apply through City Clerk's Office. Processing time: 3-7 business days. Renewal is required.

Application Process(7)

•Sedona STR permit - Step 3: Apply for Sedona STR Permit. Submit your application through the MUNIRevs portal. Upload proof of insurance and TPT license. Required documents: Insurance binder, TPT license certificate. Time: 3-7 business days. Cost: 210.
•Sedona extended permit requirement: Late fee for renewals 90+ days overdue; $50 for 1-90 days late.

Fees & Costs(1)

•Sedona charges a registration fee of $210 (annual). Extended/additional fee: $100 (Late fee for renewals 90+ days overdue; $50 for 1-90 days late.).

Taxes(3)

•Arizona has a state sales tax of 5.6% that applies to STR rentals.
•Sedona: Dual County Tax: Properties in the Coconino portion pay 13.9%, while Yavapai properties pay 13.325%.

Limits & Restrictions(3)

•Sedona enforces quiet hours: 10:00 PM to 7:00 AM.
•Sedona occupancy calculation: Limited by building/fire occupancy codes. Count your bedrooms to determine your max guest limit.
•Sedona limits stays to a maximum of 29 nights.

Safety Requirements(1)

•Sedona requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Property must meet standards for habitable structures, Trash management requirements (time-limited curb placement).

Penalties(3)

•Sedona: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Sedona: Late Renewal Fines: Renewing even one day late incurs a $50 fine; 90+ days late is $100 (new for 2026).

Exemptions(2)

•Sedona: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Sedona exempts the following from STR regulations: long-term rentals (30+ days).

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Sedona

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(6)

Requirements(17)

Application Process(7)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(3)

Safety Requirements(1)

Penalties(3)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Sedona

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Sedona?

2What is the TOT tax rate in Sedona, AZ?

3Are short-term rentals allowed in Sedona?

4How much does an STR permit cost in Sedona?

5Can renters host on Airbnb in Sedona?

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