Indianapolis vs Maui County

Indiana Legal with Permit | Hawaii Effectively Banned

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
Maui County, Hawaii
Status Effectively Banned
Permit Fee Set by annual budget ordinance — contact Planning Dept for current amount
Tax Rate ~18% combined (11% state TAT + 3% county MCTAT + 4% GET)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $20,000 first offense; $10,000/day thereafter

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Maui County charges Set by annual budget ordinance — contact Planning Dept for current amount. Indianapolis renewal is annual, and Maui County renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Maui County (Effectively Banned).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Maui County, hosts pay ~18% combined (11% state TAT + 3% county MCTAT + 4% GET). A key difference: platforms like Airbnb automatically collect taxes in Indianapolis, but hosts in Maui County must collect and remit taxes themselves — a significant operational burden.

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 Maui County, violations can result in $20,000 first offense; $10,000/day thereafter. 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 →

Maui County Overview

Ordinance 5909 (signed Dec 2025) phases out all apartment-zoned vacation rentals — STR use must cease by Jan 1, 2029 in West Maui and Jan 1, 2031 elsewhere. Existing STRH and B&B permits remain but are capped. Legal challenges are pending.

Contact: Planning Dept., Current Planning Division — (808) 270-8205

Full Maui County guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Maui County?
Indianapolis is classified as "Legal with Permit" while Maui County is "Effectively Banned." Indianapolis's permit fee is $150 one-time registration fee per property compared to Set by annual budget ordinance — contact Planning Dept for current amount in Maui County. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or Maui County?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Maui County charges ~18% combined (11% state TAT + 3% county MCTAT + 4% GET). Notably, Indianapolis benefits from automatic platform tax collection, while hosts in Maui County must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Maui County: $20,000 first offense; $10,000/day thereafter. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Maui County have day limits for Airbnb?
Indianapolis has no annual day limit. Maui County has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Maui County?
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. Maui County charges Set by annual budget ordinance — contact Planning Dept for current amount with ~18% combined (11% state TAT + 3% county MCTAT + 4% GET). Automatic tax collection in Indianapolis makes compliance easier for beginners.