Starting January 1, 2025, cities and landlords throughout Arizona can no longer charge rental tax on long-term residential rentals. According to the new law, any rental agreement of 30 days or more is classified as a long-term rental.
Why the Delay?
Although this legislation passed in 2023, its implementation was postponed to give cities and towns time to prepare for the resulting loss of revenue. The hope is that these savings will be passed along to tenants, potentially reducing the overall cost of renting.
Residential Rentals Only
It’s important to note that this rental tax ban applies only to residential properties. Commercial and short-term rentals, such as vacation rentals under 30 days, remain subject to existing taxes. Tenant advocates and government agencies will be monitoring landlords to ensure immediate compliance. If you’re a landlord, be sure to stop collecting rental tax right away.
Spread the Word
If you or someone you know is currently renting—or if you’re a landlord who self-manages—please share this information to help everyone stay informed and compliant.
Additional Resources
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