Detroit vs Indianapolis
Michigan Legal but Limited | Indiana Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Detroit, Michigan | Indianapolis, Indiana |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $500 annual license fee | $150 one-time registration fee per property |
| Tax Rate | 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined) | 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined) |
| Annual Day Limit | 90 days/year | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | Yes | Yes |
| Max Fine Example | Up to $1,000–$1,200 per violation for unlicensed operation | Up to $500 per violation; permit revocation after three violations |
| Verdict | Indianapolis has more favorable STR regulations overall. | |
Detroit, Michigan
Status Legal but Limited
Permit Fee $500 annual license fee
Tax Rate 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined)
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Up to $1,000–$1,200 per violation for unlicensed operation
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.
Detroit Overview
90-day annual rental cap; max 10 guests at any time; principal residence requirement. Liability insurance required and properties must pass safety inspection.
Full Detroit 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 Detroit or Indianapolis?
Detroit is classified as "Legal but Limited" while Indianapolis is "Legal with Permit." Detroit's permit fee is $500 annual license fee compared to $150 one-time registration fee per property in Indianapolis.
Which city has higher STR taxes — Detroit or Indianapolis?
Detroit charges 6% Michigan use tax + 6% Detroit Accommodations Tax (12% combined), 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?
Detroit: Up to $1,000–$1,200 per violation for unlicensed operation. Indianapolis: Up to $500 per violation; permit revocation after three violations.