East Valley Side Hustle Business Licenses: Mesa, Chandler, Gilbert, Scottsdale & Tempe

TL;DR

• Unlike Phoenix, all five of these East Valley cities require a city license or registration for most home-based businesses, including online-only businesses run from home. (Mesa, Chandler, Gilbert, Scottsdale, and Tempe city licensing pages.)
• City fees we verified (October 30, 2026): Mesa $25/year; Chandler $45/year (prorated by quarter, expires Dec. 31); Gilbert $50/year for a home-based license; Scottsdale $12 application + $50/year for a Service license; Tempe $25/year (expires Dec. 31). Card or convenience fees and late penalties are extra. (City pages and fee schedules.)
• A city license is not a tax license. If what you sell is taxable, you also need an ADOR TPT license that lists your city location. All five cities collect their city TPT through ADOR. (ADOR.)
• City retail TPT rates on ADOR's October 1, 2026 rate table: Chandler 1.50%, Gilbert 2.00%, Mesa 2.00%, Scottsdale 1.70%, Tempe 1.80%. These are added to the state and Maricopa County rates. (ADOR TPT Rate Table.)
• Every city also has home occupation zoning rules. They limit non-resident employees, customer visits, signs, outdoor storage, and some uses. Scottsdale's are the strictest of the five: no non-resident employees and no business use of the garage. (City zoning codes and pages.)
• Common exemptions in these cities' codes include one-on-one lessons from a non-commercial location, unlicensed babysitting or caregiving, casual sales (four or fewer a year), and rideshare driving. The lists differ by city, so check yours. (Mesa, Chandler, and Tempe code and pages.)

Who this guide is for

You live in Mesa, Chandler, Gilbert, Scottsdale, or Tempe and want to run a side hustle from home. That could be bookkeeping, tutoring, an Etsy shop, mobile detailing, photography, or lawn care. Our Arizona Business License for Side Hustles guide covers Phoenix (no general license) and Tucson. This guide covers the five largest East Valley cities, where the answer is different: you'll usually need a city license. For Glendale, Peoria, Surprise, Goodyear, and Avondale, see our West Valley city business license guide.

We don't publish income claims. This page covers paperwork: what each city requires, what it costs, and the zoning limits on running a business from a house.

Quick comparison table

*City portion only, from ADOR's TPT rate table effective October 1, 2026. Confirm current rates on the ADOR rate table before you file.

Three separate things: city license, TPT license, and zoning

It's easy to mix these up:

1. City business license or registration. Each city's permission to operate there. You get it from the city.
2. TPT license. Arizona's sales-tax-style license, issued by ADOR. You need it only if your activity is taxable, such as retail sales. ADOR says a home-based business uses the home address as its business location and that zoning compliance is the business owner's responsibility. (ADOR, TPT License.)
3. Home occupation zoning rules. These limit how you run the business from a house. In these cities, zoning review is usually part of the license application rather than a separate permit, but the rules still apply.

An LLC is separate from all three. See How to Start an LLC in Arizona for Your Side Hustle.

Mesa

License: Mesa General Business License, required since January 3, 2022 under Mesa City Code Title 5, Chapter 5. (City of Mesa, General Business License.)

• Fee: $25 application, renewed every year for $25. The license runs 12 months from issue. Mesa charges a $10 late fee if you operate before you're licensed or renew late. Card payments carry a 2.37% processing fee. (Mesa.)
• Renewal timing: Mesa says to renew at least 30 days before expiration. If you're inside that window, you may have to reapply. (Mesa.)
• Home-based and online businesses: Mesa says online-only businesses run from a Mesa home need the license. So do service businesses that work off-site, such as landscaping or handyman work, because the home acts as the headquarters. (Mesa.)
• Common exemptions listed by Mesa: tutors and one-on-one lessons from a non-commercial location; babysitters and caregivers who aren't state-licensed; independent sales reps who aren't a separate entity; casual sales (four or fewer a year); rideshare and taxi drivers; real estate brokers; certain food producers; residential rental owners; and holders of certain other Mesa licenses (mobile food vendor, peddler/solicitor, kiosk). Read the full list on Mesa's page, because the details matter. (Mesa.)
• TPT: If your activity is taxable, Mesa wants your TPT license showing the Mesa location. Mesa says processing takes 10 to 30 days. (Mesa.)
• Contact: Mesa Licensing, 480-644-2316, licensing.info@mesaaz.gov. (Mesa.)

Home occupation rules: Mesa updated its home occupation section (§11-31-33) with Ordinance 5950 in July 2025. According to the ordinance text:

• No non-resident employees. The exception is AG, RS-90, and RS-43 zoning, where a Special Use Permit can allow up to two, with extra parking and enclosed storage.
• No exterior storage or display.
• Customer and employee parking must be short-term, on site or on the street in front of the home.
• One non-illuminated sign, 3 square feet or less, on the building or in a window.
• Allowed examples include personal services, consulting, therapy, professional offices, design, music or art lessons, swim lessons, and small-scale e-commerce serving five or fewer people at a time.
• On-site vehicle repair, commercial warehousing, and on-site exchange of goods (other than occasional) aren't allowed.

Violations can bring civil penalties under Mesa's zoning code. (Mesa Ordinance 5950.) Questions go to Mesa's Planner of the Day at 480-644-4726. (Mesa.)

Chandler

License: Chandler Business Registration, under City Code Chapter 61. It covers home-based, internet-based, and mobile businesses with a Chandler location. (City of Chandler, Business Registration and FAQs.)

• Fee: $45 to start and $45 to renew. The first-year fee is prorated by quarter: 100% from January through March, 75% April–June, 50% July–September, and 25% October–December. (Chandler.)
• Term: Registrations expire December 31. Renewal is due by the last business day of December and becomes delinquent after the last business day of January. (Chandler.)
• Timing: Chandler says to register within 45 days of starting to avoid penalties, and approval takes about 10 business days. We didn't find the penalty amount on Chandler's page, so confirm with Chandler Tax & License. (Chandler FAQs.)
• TPT too: If your activity is taxable, Chandler says you need both the TPT license and the Business Registration. (Chandler.)
• Sole proprietors must show documents proving lawful presence in the U.S., which is a state requirement under A.R.S. § 41-1080. (Chandler; A.R.S. § 41-1080.)
• Exemptions (City Code §61-3.1) include one-on-one lessons from a non-commercial location, childcare that isn't state-licensed, independent reps who aren't a separate entity, casual sales (four or fewer a year), long-term residential rentals, real estate and insurance agents, special-event vendors, and rideshare drivers. (Chandler.)
• Contact: Chandler Tax & License, 480-782-2299, licensing@chandleraz.gov. (Chandler.)

Home occupation rules: Chandler's Planning FAQ says home businesses are reviewed by Planning during registration, so you don't need a separate zoning clearance. (Chandler Planning FAQs.) Chandler's §35-2215, as amended by Ordinance 5075 in 2024, says:

• The primary business operator must live in the home.
• Business activity stays in the home, a permitted accessory structure, or the backyard pool for swim lessons. A garage is allowed only if it isn't permanently modified and can still park vehicles.
• Employee and customer visits are limited to 8 a.m.–7 p.m., with one employee and one customer appointment at a time, each with no more than one vehicle.
• No signs, exterior display, or exterior storage.
• Medical, dental, restaurant, veterinary, kennel, dog grooming, motor vehicle services, and massage establishments need a use permit.

(Chandler Ordinance 5075.)

Childcare: Chandler's Planning FAQ says home childcare for up to four non-resident children doesn't need a use permit, while 5 to 10 children need a City Council use permit. All childcare businesses need city registration and state approval. (Chandler Planning FAQs.) See our Arizona Home Daycare License guide.

Gilbert

License: Gilbert says, "Every commercial and home-based business located in Gilbert is required to have a business license." That includes businesses run only online from home. You apply through Gilbert's One Stop Shop. (Town of Gilbert, Business Registration and Licensing; Business License FAQ.)

• Fee: Gilbert's Development Services fee schedule lists a Homebased Business License at $50 per year. It also lists a $17 activation fee and late fees ($15 at 15 days and another $15 at 30 days). Other license types cost more, such as mobile food vendors and residential daycare for 6 to 10 children. Because we read the fee schedule through a search excerpt rather than opening the PDF, confirm the current amounts with Gilbert's One Stop Shop before you apply. (Gilbert Fee Schedule; Business License FAQ.)
• Payment fees: Gilbert charges a convenience fee for online card payments. (Gilbert.)
• Processing: Gilbert says processing can take up to 30 days, though most licenses are done sooner. Renewals are yearly. (Gilbert FAQ.)
• Business license vs. TPT: Gilbert has a page explaining that its business license and the TPT license are separate requirements. (Gilbert, Business License vs TPT.)
• Contact: Gilbert One Stop Shop, 480-503-6700, onestopshop@gilbertaz.gov. (Gilbert.)

Home occupation rules: Gilbert's code compliance FAQ summarizes Land Development Code §4.502:

• Home occupations are allowed in all zoning districts.
• The business must be run inside the home or an accessory structure (daycare excepted).
• No more than one full-time-equivalent non-resident employee, and the home can't be used to assemble or dispatch employees.
• No signs, display, or outdoor storage, and garage doors stay closed if you use the garage.
• No hazardous materials, nuisances, or excess traffic. Parking must be on site.

(Gilbert, FAQ – Municipal Code & Land Development Code.)

Scottsdale

License: Scottsdale requires a Business Registration License for businesses located in Scottsdale, including those run from a residence. There are two types (Revised Code Chapter 16, Article II): (City of Scottsdale, Business & Regulatory Licenses.)

• Service (your activity is not subject to TPT): $12 application fee plus a $50 annual license fee. Scottsdale lists a $25 late penalty per license year if you apply after you start. (Scottsdale.)
• Merchant (your activity is subject to TPT): you submit your ADOR TPT license showing Scottsdale's region code (SC). We didn't see a separate city fee for this type on Scottsdale's page, so confirm with Scottsdale Tax & License. (Scottsdale.)
• Scottsdale's code treats advertising a Scottsdale location as evidence that you're doing business there. (Scottsdale Revised Code, Ch. 16.)
• Scottsdale has a licensing eligibility checklist for individuals, which reflects the state's lawful-presence rule. (Scottsdale; A.R.S. § 41-1080.)
• Regulatory licenses cost more and have their own rules. Examples include solicitors (a per-day, per-person fee plus fingerprints), short-term rentals, mobile food vendors, secondhand dealers, and massage. See our Short-Term Rental Permits: Phoenix, Scottsdale, Tucson guide if that's your side hustle. (Scottsdale.)
• Contact: Scottsdale Tax & License, 7447 E. Indian School Rd., Suite 110; 480-312-2400. (Scottsdale.)

Home occupation rules: Scottsdale's Home Occupations page says home occupations are allowed only in single-family zoning, as a secondary use of the home. It also says:

• No non-resident employees.
• No exterior display, storage, or signs.
• No use of the garage, carport, or accessory buildings.
• No commodities sold on the premises.
• Only domestic, hobby, or office equipment.
• No traffic beyond what's normal for a home.

The business registration application includes a home business questionnaire. (Scottsdale, Home Occupations.)

Tempe

License: Tempe's General Business License took effect August 1, 2025. Tempe requires it for TPT license holders doing business in Tempe, businesses with a permanent Tempe location, home-based businesses, professional services, and contractors with Tempe job sites. Businesses with a state license (including ROC contractors) still need it. (City of Tempe, General Business License.)

• Fee: $25 per year. Licenses expire December 31. Tempe's first renewal cycle opened October 1, 2026, with renewals due by December 31, 2026. (Tempe.)
• Penalty: Tempe lists a penalty of the unpaid fees plus 50%. Confirm how it applies with Tempe. (Tempe.)
• Exemptions include holders of a Tempe regulatory license; unlicensed childcare and caregiving; independent reps of a parent company; special-event-only sellers; certain food producers; real estate agents; residential rentals; private lessons from a non-commercial space; and casual sales (four or fewer a year). Tempe publishes the full list as a PDF. (Tempe; Tempe exempt businesses list.)
• Changes: Tempe says to report changes to your business within 10 days. (Tempe.)
• Apply or renew: tempe.gov/licenseportal. Contact: 480-350-2955, license@tempe.gov. (Tempe.)

Home occupation rules: Tempe's Zoning and Development Code §3-412 allows home occupations as an accessory use in residential dwellings, with limits on outward appearance, storage, employees, signs, deliveries, and customer vehicles. Customer visits are limited to 7 a.m.–8 p.m. unless you get a use permit. We couldn't open the current text on Tempe's website (the city's former code compliance page now returns "page not found"), so confirm the exact employee and delivery limits with Tempe Planning before you plan around them. (Tempe ZDC §3-412.)

City TPT: how it works in the East Valley

Arizona cities can tax many of the same activities the state does. In Mesa, Chandler, Gilbert, Scottsdale, and Tempe, ADOR licenses and collects the city portion, so you file one TPT return with ADOR that includes your city. (ADOR.)

• License fees: ADOR charges $12 per location for the state TPT license, plus any city fee. ADOR's license fee worksheet lists city fees of $2 (Chandler), $2 (Gilbert), $20 (Mesa), $50 (Scottsdale), and $50 (Tempe). Confirm the total at checkout. (ADOR, License Fees.)
• Rates: On ADOR's October 1, 2026 table, the combined state and Maricopa County retail rate is 6.3%. Add the city rate from the comparison table above. Rates change, so check the current table before you file. (ADOR TPT Rate Table.)
• Services: Many professional and personal services aren't taxed under TPT, but cities can tax some activities the state doesn't. Ask ADOR about your specific activity. (ADOR.)

For the full TPT walkthrough, see Arizona TPT License for Side Hustles. If you sell on Etsy, eBay, or at craft fairs, see Arizona Online Sellers, Resellers & Craft Fairs.

Trade names (DBA)

If you operate under a name other than your own legal name (or your LLC's exact name), you can register a trade name with the Arizona Secretary of State, not the Arizona Corporation Commission. The SOS says a trade name isn't legally required, doesn't give exclusive rights to a name, and lasts 5 years. The SOS also offers an optional expedite for an extra $25. (Arizona SOS, Trade Names and Trademarks.) For the filing fee and steps, see the trade name section of our Arizona Business License for Side Hustles guide. City license applications usually ask for your business name, so it helps to settle on a name first.

Regulated side hustles need more than a city license

A general city license doesn't replace state or city regulatory licenses. Watch for these common ones:

• Food: See the Arizona Cottage Food Law and Arizona Food Truck Permits and Licenses guides.
• Childcare: Rules depend on how many children you care for. See the Arizona Home Daycare License guide.
• Beauty, nails, lashes: Board licensing comes first. See the Arizona Cosmetology, Nail & Lash License Rules guide.
• Repairs: See the Arizona Handyman Side Hustle: The ROC Exemption and Arizona Pool Cleaning Side Hustle guides.
• Door-to-door sales, short-term rentals, secondhand goods, and massage often need a separate city regulatory license, as Scottsdale's list shows. (Scottsdale.)

A simple decision path

1. Find your city. Use your actual city limits, not your mailing address. Some Mesa, Chandler, Gilbert, and Scottsdale mailing addresses are in unincorporated Maricopa County or another town.
2. Check the exemptions. If your activity is on your city's exempt list (for example, one-on-one tutoring from home in Mesa, Chandler, or Tempe), you may not need the general license. Confirm with the city.
3. Decide whether your activity is taxable. If it is, get the ADOR TPT license with your city location first. Mesa and Scottsdale ask for it with your application. (Mesa; Scottsdale.)
4. Read your city's home occupation rules before you invite customers over, hire help, or store inventory outside.
5. Apply and keep it current. Chandler and Tempe licenses expire December 31. Mesa runs 12 months from issue, and Gilbert renews yearly.
6. Not sure? Call the city's licensing office, or try our Arizona side hustle license & permit checklist.

Frequently asked questions

Do I need a business license for a home business in Mesa, AZ? Usually, yes. Mesa requires a General Business License ($25 a year) for most businesses with a Mesa location, including online-only and off-site service businesses run from home. Exemptions include one-on-one tutoring from a non-commercial location, unlicensed babysitting, and casual sales of four or fewer a year. Confirm with Mesa Licensing.

How much is a Chandler business registration? $45 a year, prorated by quarter in your first year (25% if you start in October–December). Registrations expire December 31. If your activity is taxable, you'll also need an ADOR TPT license.

Does Gilbert require a license for a home-based business? Yes. Gilbert says every commercial and home-based business located in Gilbert needs a business license. Its fee schedule lists the home-based license at $50 a year. Confirm the current fee with Gilbert's One Stop Shop.

Can I run a business out of my garage in Scottsdale? Not under Scottsdale's home occupation rules. Its Home Occupations page says home occupations can't use the garage, carport, or accessory buildings. Chandler allows garage use if the garage isn't permanently modified. Gilbert allows it if the garage doors stay closed.

Does Tempe have a business license now? Yes. Tempe's $25 General Business License took effect August 1, 2025 and covers home-based businesses. Licenses expire December 31, and the first renewals are due by December 31, 2026.

Is a city business license the same as a TPT license? No. The city license is the city's permission to operate. The TPT license comes from ADOR and is needed only if your activity is taxable. Many East Valley side hustles need both.

Do I need a license if I live in an unincorporated area near these cities? City licenses apply inside city or town limits. If you're in unincorporated Maricopa County, the city rules on this page may not apply, but county zoning and state requirements still can. Check your parcel with the county.