Boston vs Indianapolis

Massachusetts Legal but Limited | Indiana Legal with Permit

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

Boston, Massachusetts
Status Legal but Limited
Permit Fee $25 registration fee
Tax Rate 6.5% state excise + 6% city convention center tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $300/day for unregistered listing
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

Boston charges $25 registration fee for STR licensing, while Indianapolis charges $150 one-time registration fee per property. Boston renewal is annual, and Indianapolis renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Boston (Legal but Limited).

Tax Obligations

In Boston, hosts pay 6.5% state excise + 6% city convention center 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 Boston face penalties including $300/day for unregistered listing. 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.

Boston Overview

Only primary-residence units may be listed as STRs. Investor-owned (non-owner-occupied) short-term rentals are prohibited. Must register with the city and carry $1M liability insurance.

Contact: Boston Inspectional Services — (617) 635-5300

Full Boston 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 Boston or Indianapolis?
Boston is classified as "Legal but Limited" while Indianapolis is "Legal with Permit." Boston's permit fee is $25 registration fee 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 — Boston or Indianapolis?
Boston charges 6.5% state excise + 6% city convention center 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?
Boston: $300/day for unregistered listing. Indianapolis: Up to $500 per violation; permit revocation after three violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Boston and Indianapolis have day limits for Airbnb?
Boston has no annual day limit. Indianapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Boston or Indianapolis?
For new hosts, consider the total cost of entry: Boston charges $25 registration fee for permits with 6.5% state excise + 6% city convention center 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 Boston and Indianapolis makes compliance easier for beginners.