Indianapolis vs Key West

Indiana Legal with Permit | Florida 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
Key West, Florida
Status Restricted
Permit Fee $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee
Tax Rate 12.5% combined (5% county tourist dev. + 7.5% state sales)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $5,000/violation and 60 days imprisonment; each day is separate

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee. Indianapolis renewal is annual, and Key West renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Key West (Restricted).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Key West, hosts pay 12.5% combined (5% county tourist dev. + 7.5% state sales). 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 Indianapolis face penalties including Up to $500 per violation; permit revocation after three violations. In Key West, violations can result in Up to $5,000/violation and 60 days imprisonment; each day is separate. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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 →

Key West Overview

Moratorium on new transient rental licenses — only grandfathered properties may operate STRs under 28 days. Existing licenses are property-specific and command $400K+ on the secondary market. Florida DBPR state license also required.

Contact: Key West Licensing Division — (305) 809-3959

Full Key West guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Key West?
Indianapolis is classified as "Legal with Permit" while Key West is "Restricted." Indianapolis's permit fee is $150 one-time registration fee per property compared to $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee in Key West. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or Key West?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Key West charges 12.5% combined (5% county tourist dev. + 7.5% state sales).
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Key West: Up to $5,000/violation and 60 days imprisonment; each day is separate. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Key West have day limits for Airbnb?
Indianapolis has no annual day limit. Key West has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Key West?
For new hosts, consider the total cost of entry: Indianapolis charges $150 one-time registration fee per property for permits with 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined) in taxes. Key West charges $150 Business Tax Receipt + $110 Transient Manager License + fire inspection fee with 12.5% combined (5% county tourist dev. + 7.5% state sales). Automatic tax collection in Indianapolis and Key West makes compliance easier for beginners.