Baltimore vs Indianapolis

Maryland Legal but Limited | Indiana Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

Baltimore, Maryland
Status Legal but Limited
Permit Fee $200 biennial license fee per dwelling unit
Tax Rate 9.5% Baltimore Hotel Tax + 6% state lodging tax
Day Limit No limit
Renewal Biennial
Platform Tax Yes
Max Fine $500/violation for unlicensed operation; up to $1,000 for state registration violations
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.

Permits & Licensing

Baltimore charges $200 biennial license fee per dwelling unit for STR licensing, while Indianapolis charges $150 one-time registration fee per property. Baltimore renewal is biennial, and Indianapolis renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Baltimore (Legal but Limited).

Tax Obligations

In Baltimore, hosts pay 9.5% Baltimore Hotel Tax + 6% state lodging tax. In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Baltimore face penalties including $500/violation for unlicensed operation; up to $1,000 for state registration violations. In Indianapolis, violations can result in Up to $500 per violation; permit revocation after three violations. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Baltimore Overview

Primary residence required; max two licenses per host. Stays must be under 90 consecutive nights. Must pass home inspection.

Contact: Baltimore DHCD Property Registration — (410) 396-3575

Full Baltimore 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.

Contact: Dept. of Business and Neighborhood Services — (317) 327-8700

Full Indianapolis guide →

Frequently Asked Questions

Is it easier to Airbnb in Baltimore or Indianapolis?
Baltimore is classified as "Legal but Limited" while Indianapolis is "Legal with Permit." Baltimore's permit fee is $200 biennial license fee per dwelling unit compared to $150 one-time registration fee per property in Indianapolis. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Baltimore or Indianapolis?
Baltimore charges 9.5% Baltimore Hotel Tax + 6% state lodging tax, while Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined).
Which city has stricter fines for illegal short-term rentals?
Baltimore: $500/violation for unlicensed operation; up to $1,000 for state registration violations. Indianapolis: Up to $500 per violation; permit revocation after three violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Baltimore and Indianapolis have day limits for Airbnb?
Baltimore has no annual day limit. Indianapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Baltimore or Indianapolis?
For new hosts, consider the total cost of entry: Baltimore charges $200 biennial license fee per dwelling unit for permits with 9.5% Baltimore Hotel Tax + 6% state lodging tax in taxes. Indianapolis charges $150 one-time registration fee per property with 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). Automatic tax collection in Baltimore and Indianapolis makes compliance easier for beginners.