Payson, AZ short-term rental license
Plan on three registrations before you rent in Payson, with the town license coming last. The state tax license comes first with the Gila County assessor filing, and the town license depends on both.[4]
Every rule below links to the official source it comes from, verified October 2, 2026.
Can you rent short term in Payson?
Get a license first
What you apply for: Town of Payson short-term rental license
- Seasonal homes
- 1,323
- Housing units
- 10,249
- Residents
- 16,622
U.S. Census Bureau, 2024 ACS 5-year estimates
- City ruleLicense required
- City feeNone published
- Tax on each staySet locally
- Seasonal homes129 per 1,000
Payson short-term rental license
Payson requires short-term and vacation rental owners to obtain and maintain an annual town license for each property in Payson. That comes in addition to county and state requirements, and the license has to be renewed every year. Three things come first. You need a transaction privilege tax license from the Arizona Department of Revenue for each rental property. The town asks for your tax number on its own application. You need the property registered with Gila County as required by A.R.S. § 33-1902. The town states plainly that it is illegal to rent a property before it is registered with the Gila County Assessor. Owning three or more properties within incorporated Payson adds a town business license. The owner or a designee must give neighbor notification to each single-family residential property adjacent to the rental. The notice goes out after the town license is issued or before the vacation rental is first offered. In any case, it is due within seven days of the license being issued.[4]
What Payson asks of you
Owners must obtain and maintain an annual Town of Payson license for each property in Payson, in addition to the county and state requirements, and renew it every year.[4]
A transaction privilege tax license from the Arizona Department of Revenue is required for each rental property, and its number is needed to apply for the town license.[4]
Each property must be registered with Gila County as required by A.R.S. § 33-1902. The town states that it is illegal to rent a property before it is registered with the Gila County Assessor.[4]
A Town of Payson business license is also required from owners of three or more properties within incorporated Payson.[4]
The owner or a designee must notify each single-family residential property adjacent to the rental. The deadline is before the vacation rental is first offered for rent, or within seven days of the license being issued.[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 Payson
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 |
Three registrations carry tax or title consequences here: the state TPT license, the Gila County assessor filing under A.R.S. § 33-1902, and the town license that depends on both.[4]
What the census counts
How much of Payson is already a second home
The Census Bureau counts 1,323 of Payson's 10,249 homes as vacant for seasonal, recreational or occasional use. That is 129 out of every 1,000. It ranks Payson 8th of the 25 Arizona cities on this site for the share of its housing stock kept for part-year use.
- Rank in the state
- 8th of 25
- Share of housing
- 129 per 1,000
- Median home value
- $382,400
U.S. Census Bureau, 2024 ACS 5-year estimates, tables B25004, B25001, B01003 and B25077.
Nearby and comparable
Where Payson sits among its neighbors
Lake Havasu City, AZ
Permit required
5,293 seasonal homes, 150 per 1,000 housing units.
Lake Havasu City short-term rental rulesWilliams, AZ
Permit required
309 seasonal homes, 176 per 1,000 housing units.
Williams short-term rental rulesJerome, AZ
License required
51 seasonal homes, 179 per 1,000 housing units.
Jerome short-term rental rulesApache Junction, AZ
No city ordinance
2,801 seasonal homes, 128 per 1,000 housing units.
Apache Junction short-term rental rulesFAQ
Payson short-term rental questions
What comes first in Payson, the state or the town?
Do I need a business license as well?
When do I tell the neighbors?
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 Rental License, Town Clerk, Town of Payson, 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.
Airbnb host fee calculator
What Airbnb takes on a booking under the 15.5% host-only fee or the old split fee, what the guest pays on top, and the payout that reaches you.
Airbnb house rules
Generate a complete PDF house rules document for your property: rules, schedule, amenities, emergency contacts.
Check-in instructions
The message a guest reads before getting in: access, keys, WiFi, parking, contact. English or bilingual output.