Indianapolis vs Nashville

Indiana Legal with Permit | Tennessee 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
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.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Nashville charges $313 permit fee. Indianapolis renewal is annual, and Nashville renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Nashville (Legal but Limited).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Nashville, hosts pay 6% Short-Term Rental Property Tax + state/local sales tax. 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 Nashville, violations can result in $50/day for operating without permit; civil penalties up to $500,000 for repeated violations. 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 →

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.

Contact: Nashville Codes Department — (615) 862-6590

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. Overall, Indianapolis has a more host-friendly regulatory environment.
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.
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. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Nashville have day limits for Airbnb?
Indianapolis has no annual day limit. Nashville has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Nashville?
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. Nashville charges $313 permit fee with 6% Short-Term Rental Property Tax + state/local sales tax. Automatic tax collection in Indianapolis and Nashville makes compliance easier for beginners.