Austin vs Indianapolis
Texas Legal but Limited | Indiana Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Indianapolis, Indiana |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $150 one-time registration fee per property |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined) |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | No — host must remit | Yes |
| Max Fine Example | $500–$2,000/violation; license revocation possible | Up to $500 per violation; permit revocation after three violations |
| Verdict | Indianapolis has more favorable STR regulations overall. | |
Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Indianapolis, Indiana
Status Legal with Permit
Permit Fee $150 one-time registration fee per property
Tax Rate 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $500 per violation; permit revocation after three violations
Indianapolis has more favorable STR regulations overall.
Austin Overview
Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.
Full Austin guide →Indianapolis Overview
Indiana state law prevents municipalities from banning STRs but allows permitting. Hosts must collect and remit gross retail tax and Marion County innkeeper's tax.
Full Indianapolis guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Indianapolis?
Austin is classified as "Legal but Limited" while Indianapolis is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $150 one-time registration fee per property in Indianapolis.
Which city has higher STR taxes — Austin or Indianapolis?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Indianapolis: Up to $500 per violation; permit revocation after three violations.