Carefree, AZ short-term rental license
Carefree licenses short-term rentals each year, but check its zoning before you buy a home with a casita. A casita or guest house cannot be rented on its own here, in any district. Short-term rentals stay in the state's transient lodging classification and keep their tax license.[4]
Every rule below links to the official source it comes from, verified October 2, 2026.
Can you rent short term in Carefree?
Get a license first
What you apply for: Town of Carefree short-term rental license
- Seasonal homes
- 444
- Housing units
- 2,315
- Residents
- 3,683
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleLicense required
- City feeNone published
- Tax on each staySet locally
- Seasonal homes192 per 1,000
Carefree short-term rental license
Carefree requires short-term and vacation rental owners to obtain and maintain an annual town license for each Carefree property, under town Ordinance 2022-03. That is in addition to the county and state requirements. The route is three steps. A transaction privilege tax license from the Arizona Department of Revenue comes first. The short-term rental license follows through the town's permit and license portal, then the Maricopa County requirements. Long-term rentals are defined as the rental of real property for thirty or more consecutive days for residential purposes. They must also register with the town, although the Department of Revenue removed the transaction privilege tax on residential rentals from January 1, 2025. One rule applies to both. The entire property must be rented as a whole. Accessory buildings may not be leased, subleased or rented separately from the main building. No main building may be rented separately from an accessory building. The zoning ordinance adds that a guest house may never be rented apart from the principal residence. Accessory buildings in single-family residential districts may not be rented or leased for any purpose.[4]
What Carefree asks of you
Under Ordinance 2022-03, short-term and vacation rental owners must obtain and maintain an annual town license for each Carefree property, on top of the county and state requirements.[4]
The sequence starts with a transaction privilege tax license from the Arizona Department of Revenue. The short-term rental license through the town's permit and license portal comes next, then the Maricopa County requirements.[4]
Long-term rentals, meaning rentals of thirty or more consecutive days for residential purposes, must also register with the town. That holds even though residential rental transaction privilege tax was removed from January 1, 2025.[4]
Whether the property is rented short or long term, the entire property must be rented as a whole. An accessory building may not be leased, subleased or rented separately from the main building, and no main building may be rented separately from an accessory building.[4]
The zoning ordinance defines a guest house as living quarters that shall never be rented or offered for rent separately from the principal residence.[4]
In single-family residential zoning districts, accessory buildings shall not be rented or leased for any purpose.[4]
What Arizona asks wherever you host
These rules apply at this address whatever the city decides.
Arizona cities may not ban short-term rentals. A restriction by classification, use or occupancy is allowed only where the statute lists it.[1]
A city permit fee is capped at $250, or at the city's actual cost of issuing it if that is lower. The application may ask for six things only.[1]
A city may make you notify the adjacent, opposite and diagonally opposite properties before the first booking. It may also require the permit number on every advertisement.[1]
Stays shorter than thirty consecutive days are taxed under the state's transient lodging classification. Longer stays fall outside it.[2]
What a guest pays on top of your nightly rate in Carefree
Each layer is set by a different authority, and not all of them are collected by the platform.
| Layer | Rate | Remitted to |
|---|---|---|
| Arizona transient lodging transaction privilege tax[3] | 5.5% | The state revenue department |
| City transient lodging tax[4] | Not published | The city |
Arizona removed the transaction privilege tax on residential rentals from January 1, 2025, amending A.R.S. § 42-6004(H). Short-term rentals stay inside the transient lodging classification and keep their tax license.[4]
What the census counts
How much of Carefree is already a second home
The Census Bureau counts 444 of Carefree's 2,315 homes as vacant for seasonal, recreational or occasional use. That is 192 out of every 1,000. It ranks Carefree 3rd of the 25 Arizona cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 3rd of 25
- Share of housing
- 192 per 1,000
- Median home value
- $1,088,100
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Carefree sits among its neighbors
Fountain Hills, AZ
Permit required
1,565 seasonal homes, 119 per 1,000 housing units.
Fountain Hills short-term rental rulesScottsdale, AZ
License required
12,314 seasonal homes, 89 per 1,000 housing units.
Scottsdale short-term rental rulesWickenburg, AZ
Permit required
388 seasonal homes, 78 per 1,000 housing units.
Wickenburg short-term rental rulesSedona, AZ
Permit required
1,260 seasonal homes, 189 per 1,000 housing units.
Sedona short-term rental rulesFAQ
Carefree short-term rental questions
Can I rent out my Carefree casita on its own?
Do long-term rentals need to register in Carefree?
What order do the licenses come in?
Sources
- A.R.S. § 9-500.39, Limits on regulation of vacation rentals and short-term rentals, Arizona State Legislature, read on September 20, 2026
- A.R.S. § 42-5070, Transient lodging classification; definition, Arizona State Legislature, read on October 2, 2026
- A.R.S. § 42-5010, Rates; distribution base, Arizona State Legislature, read on October 2, 2026
- Short-Term & Residential Rentals, Ordinance 2022-03 and zoning ordinance article II and IX, Town of Carefree, read on September 20, 2026
This page is not legal advice. It summarizes the official sources listed on this page as they read on October 2, 2026. Rules can change after that date, so check with the issuing office before you apply or publish a listing.
Before you list
Free tools for new hosts
Short-term rental agreement generator
Parties, dates, rent, deposit checked against your state's cap, and the house rules clauses you enforce. A signed-ready PDF for direct and Vrbo bookings.
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Check-in instructions
The message a guest reads before getting in: access, keys, WiFi, parking, contact. English or bilingual output.