Indianapolis vs Jersey City

Indiana Legal with Permit | New Jersey Restricted

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

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
Jersey City, New Jersey
Status Restricted
Permit Fee $250 initial application + $200 annual renewal
Tax Rate 6% municipal occupancy tax + 6.625% state sales + 5% state occupancy fee
Day Limit 60 days/year
Renewal Annual
Platform Tax Yes
Max Fine $1,500–$2,000 first offense; up to $5,000+ for repeat violations

Indianapolis has more favorable STR regulations overall.

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 →

Jersey City Overview

Adopted after 2019 voter referendum. Owner-occupied only — tenants and rent-controlled units prohibited. Unhosted stays capped at 60 nights/year. Only buildings with fewer than 4 units eligible.

Full Jersey City guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Jersey City?
Indianapolis is classified as "Legal with Permit" while Jersey City is "Restricted." Indianapolis's permit fee is $150 one-time registration fee per property compared to $250 initial application + $200 annual renewal in Jersey City.
Which city has higher STR taxes — Indianapolis or Jersey City?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Jersey City charges 6% municipal occupancy tax + 6.625% state sales + 5% state occupancy fee. Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Jersey City: $1,500–$2,000 first offense; up to $5,000+ for repeat violations.