Gatlinburg vs Indianapolis

Tennessee Legal with Permit | Indiana Legal with Permit

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

Gatlinburg, Tennessee
Status Legal with Permit
Permit Fee $200 (2-bedroom or fewer); $75 per additional bedroom
Tax Rate 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County lodging tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day per violation; permit suspension/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

Both cities have comparable STR regulatory environments.

Permits & Licensing

Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom for STR licensing, while Indianapolis charges $150 one-time registration fee per property. Gatlinburg renewal is annual, and Indianapolis renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

Tax Obligations

In Gatlinburg, hosts pay 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County 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 Gatlinburg face penalties including $50/day per violation; permit suspension/revocation 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.

Gatlinburg Overview

Tourist Residency Permit required with annual inspection. STRs prohibited in R-1A and R-2A zones. Properties over 3 stories or 12+ occupants require sprinkler systems.

Contact: Building & Planning Department — (865) 436-7792

Full Gatlinburg 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 Gatlinburg or Indianapolis?
Gatlinburg is classified as "Legal with Permit" while Indianapolis is "Legal with Permit." Gatlinburg's permit fee is $200 (2-bedroom or fewer); $75 per additional bedroom compared to $150 one-time registration fee per property in Indianapolis. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Gatlinburg or Indianapolis?
Gatlinburg charges 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County 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?
Gatlinburg: $50/day per violation; permit suspension/revocation possible. Indianapolis: Up to $500 per violation; permit revocation after three violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Gatlinburg and Indianapolis have day limits for Airbnb?
Gatlinburg has no annual day limit. Indianapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Gatlinburg or Indianapolis?
For new hosts, consider the total cost of entry: Gatlinburg charges $200 (2-bedroom or fewer); $75 per additional bedroom for permits with 12.75% combined (7% state sales + 2.75% local sales + 3% hotel/motel tax) + 3% Sevier County 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 Gatlinburg and Indianapolis makes compliance easier for beginners.