Charleston vs Indianapolis

South Carolina Restricted | Indiana Legal with Permit

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

Charleston, South Carolina
Status Restricted
Permit Fee $250 (24–72 nights/yr) or $1,500 (72+ nights/yr) + $200 zoning review fee
Tax Rate ~14% combined (5% state sales + 2% state accommodations + 2% county + 2% city + local option taxes)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine Up to $1,087/day or 30 days jail; criminal prosecution 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.

Permits & Licensing

Charleston charges $250 (24–72 nights/yr) or $1,500 (72+ nights/yr) + $200 zoning review fee for STR licensing, while Indianapolis charges $150 one-time registration fee per property. Charleston renewal is annual, and Indianapolis renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Charleston (Restricted).

Tax Obligations

In Charleston, hosts pay ~14% combined (5% state sales + 2% state accommodations + 2% county + 2% city + local option taxes). In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). A key difference: platforms like Airbnb automatically collect taxes in Indianapolis, but hosts in Charleston must collect and remit taxes themselves — a significant operational burden.

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 Charleston face penalties including Up to $1,087/day or 30 days jail; criminal prosecution possible. 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.

Charleston Overview

Whole-house STRs are effectively banned; at least one full-time resident must sleep on-site each night. Max 4 adult guests. Charleston is one of the few U.S. cities that criminally prosecutes illegal STR operators. $1M liability insurance required.

Contact: Charleston Dept. of Planning, Preservation & Sustainability — (843) 724-7311

Full Charleston 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 Charleston or Indianapolis?
Charleston is classified as "Restricted" while Indianapolis is "Legal with Permit." Charleston's permit fee is $250 (24–72 nights/yr) or $1,500 (72+ nights/yr) + $200 zoning review 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 — Charleston or Indianapolis?
Charleston charges ~14% combined (5% state sales + 2% state accommodations + 2% county + 2% city + local option taxes), while Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). Notably, Indianapolis benefits from automatic platform tax collection, while hosts in Charleston must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Charleston: Up to $1,087/day or 30 days jail; criminal prosecution possible. Indianapolis: Up to $500 per violation; permit revocation after three violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Charleston and Indianapolis have day limits for Airbnb?
Charleston has no annual day limit. Indianapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Charleston or Indianapolis?
For new hosts, consider the total cost of entry: Charleston charges $250 (24–72 nights/yr) or $1,500 (72+ nights/yr) + $200 zoning review fee for permits with ~14% combined (5% state sales + 2% state accommodations + 2% county + 2% city + local option taxes) 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 Indianapolis makes compliance easier for beginners.