Indianapolis vs Nashville
Indiana Legal with Permit | Tennessee Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Indianapolis, Indiana | Nashville, Tennessee |
|---|---|---|
| Legality Status | Legal with Permit | Legal but Limited |
| Permit Fee | $150 one-time registration fee per property | $313 permit fee |
| Tax Rate | 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined) | 6% Short-Term Rental Property Tax + state/local sales tax |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | Yes | Yes |
| Max Fine Example | Up to $500 per violation; permit revocation after three violations | $50/day for operating without permit; civil penalties up to $500,000 for repeated violations |
| Verdict | Indianapolis has more favorable STR regulations overall. | |
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
Nashville, Tennessee
Status Legal but Limited
Permit Fee $313 permit fee
Tax Rate 6% Short-Term Rental Property Tax + state/local sales tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day for operating without permit; civil penalties up to $500,000 for repeated 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 →Nashville Overview
Owner-occupied permits allowed in all zones. Non-owner-occupied permits frozen — no new applications accepted in most residential zones since 2015. Existing non-owner permits are non-transferable.
Full Nashville guide →Frequently Asked Questions
Is it easier to Airbnb in Indianapolis or Nashville?
Indianapolis is classified as "Legal with Permit" while Nashville is "Legal but Limited." Indianapolis's permit fee is $150 one-time registration fee per property compared to $313 permit fee in Nashville.
Which city has higher STR taxes — Indianapolis or Nashville?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax. 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. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations.