Indianapolis vs Palm Springs

Indiana Legal with Permit | California 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
Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate. Indianapolis renewal is annual, and Palm Springs renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Palm Springs (Legal but Limited).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Palm Springs, hosts pay 12.5% combined (11.5% TOT + 1% TBID). 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 Palm Springs, violations can result in $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. 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 →

Palm Springs Overview

Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.

Contact: Dept. of Special Program Compliance — (760) 322-8383

Full Palm Springs guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Palm Springs?
Indianapolis is classified as "Legal with Permit" while Palm Springs is "Legal but Limited." Indianapolis's permit fee is $150 one-time registration fee per property compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or Palm Springs?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID).
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Palm Springs have day limits for Airbnb?
Indianapolis has no annual day limit. Palm Springs has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Palm Springs?
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. Palm Springs charges $1,072/year Vacation Rental Certificate; $642/year Junior Certificate with 12.5% combined (11.5% TOT + 1% TBID). Automatic tax collection in Indianapolis and Palm Springs makes compliance easier for beginners.