Indianapolis vs New Orleans

Indiana Legal with Permit | Louisiana 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
New Orleans, Louisiana
Status Restricted
Permit Fee NSTR ~$50 application (lottery); CSTR $1,000/year
Tax Rate 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $1,000/violation; platforms fined $1,000/day per illegal listing

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while New Orleans charges NSTR ~$50 application (lottery); CSTR $1,000/year. Indianapolis renewal is annual, and New Orleans renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to New Orleans (Restricted).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In New Orleans, hosts pay 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee. 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 New Orleans, violations can result in $1,000/violation; platforms fined $1,000/day per illegal listing. 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 →

New Orleans Overview

Heavily restricted: French Quarter is banned (except parts of Bourbon St), permits limited to owner's primary residence via lottery, CSTR permits frozen since 2023, and one STR per block density cap applies.

Contact: New Orleans STR Administration — (504) 658-7144

Full New Orleans guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or New Orleans?
Indianapolis is classified as "Legal with Permit" while New Orleans is "Restricted." Indianapolis's permit fee is $150 one-time registration fee per property compared to NSTR ~$50 application (lottery); CSTR $1,000/year in New Orleans. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or New Orleans?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while New Orleans charges 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. New Orleans: $1,000/violation; platforms fined $1,000/day per illegal listing. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and New Orleans have day limits for Airbnb?
Indianapolis has no annual day limit. New Orleans has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or New Orleans?
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. New Orleans charges NSTR ~$50 application (lottery); CSTR $1,000/year with 5% sales tax + 6.75% occupancy tax + $5–$12/night occupancy fee. Automatic tax collection in Indianapolis and New Orleans makes compliance easier for beginners.