Indianapolis vs New York City

Indiana Legal with Permit | New York 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
New York City, New York
Status Effectively Banned
Permit Fee $145 registration fee (OSE)
Tax Rate 5.875% hotel room occupancy tax + state/city sales tax
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $5,000 first offense; up to $7,500 for subsequent violations

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while New York City charges $145 registration fee (OSE). Indianapolis renewal is annual, and New York City renewal is every 2 years. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to New York City (Effectively Banned).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In New York City, hosts pay 5.875% hotel room occupancy tax + state/city 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 New York City, violations can result in $5,000 first offense; up to $7,500 for subsequent 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 →

New York City Overview

Local Law 18 (2023) requires hosts to register with OSE, be present during stays, and limits guests to 2. Entire-apartment rentals under 30 days are effectively banned. Only hosted stays with the owner present are permitted.

Contact: NYC Mayor's Office of Special Enforcement — (212) 676-4101

Full New York City guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or New York City?
Indianapolis is classified as "Legal with Permit" while New York City is "Effectively Banned." Indianapolis's permit fee is $150 one-time registration fee per property compared to $145 registration fee (OSE) in New York City. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or New York City?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while New York City charges 5.875% hotel room occupancy tax + state/city sales tax.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. New York City: $5,000 first offense; up to $7,500 for subsequent violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and New York City have day limits for Airbnb?
Indianapolis has no annual day limit. New York City has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or New York City?
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 York City charges $145 registration fee (OSE) with 5.875% hotel room occupancy tax + state/city sales tax. Automatic tax collection in Indianapolis and New York City makes compliance easier for beginners.