Indianapolis vs Los Angeles

Indiana Legal with Permit | California Legal but Limited

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
Los Angeles, California
Status Legal but Limited
Permit Fee $89 registration fee + $850 annual platform fee
Tax Rate 14% Transient Occupancy Tax
Day Limit 120 days/year
Renewal Annual
Platform Tax Yes
Max Fine $2,000–$5,000/violation (up to triple for repeat offenses)

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Los Angeles charges $89 registration fee + $850 annual platform fee. Indianapolis renewal is annual, and Los Angeles renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Los Angeles (Legal but Limited).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Los Angeles, hosts pay 14% Transient Occupancy Tax. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Los Angeles imposes a 120-night annual limit, while Indianapolis has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Indianapolis face penalties including Up to $500 per violation; permit revocation after three violations. In Los Angeles, violations can result in $2,000–$5,000/violation (up to triple for repeat offenses). 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 →

Los Angeles Overview

Home-Sharing Ordinance limits STRs to primary residences with a 120-day annual cap (extendable with Enhanced Plan). Registration required. RSO (rent-stabilized) units generally prohibited.

Contact: LA City Planning — (213) 482-7077

Full Los Angeles guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Los Angeles?
Indianapolis is classified as "Legal with Permit" while Los Angeles is "Legal but Limited." Indianapolis's permit fee is $150 one-time registration fee per property compared to $89 registration fee + $850 annual platform fee in Los Angeles. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or Los Angeles?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Los Angeles charges 14% Transient Occupancy Tax.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Los Angeles: $2,000–$5,000/violation (up to triple for repeat offenses). Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Los Angeles have day limits for Airbnb?
Indianapolis has no annual day limit. Los Angeles limits STRs to 120 nights per year.
Which city is better for first-time Airbnb hosts — Indianapolis or Los Angeles?
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. Los Angeles charges $89 registration fee + $850 annual platform fee with 14% Transient Occupancy Tax. Automatic tax collection in Indianapolis and Los Angeles makes compliance easier for beginners.