Indianapolis vs Phoenix

Indiana Legal with Permit | Arizona Legal with Permit

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
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations

Both cities have comparable STR regulatory environments.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Phoenix charges $250/year (non-refundable). Indianapolis renewal is annual, and Phoenix renewal is annual. Both cities share a similar regulatory stance, classified as "Legal with Permit."

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Phoenix, hosts pay ~12.57% combined transient lodging tax (state + county + city). 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 Phoenix, violations can result in $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 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 →

Phoenix Overview

Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.

Contact: Phoenix Planning & Development — (602) 534-9723

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Phoenix?
Indianapolis is classified as "Legal with Permit" while Phoenix is "Legal with Permit." Indianapolis's permit fee is $150 one-time registration fee per property compared to $250/year (non-refundable) in Phoenix. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Indianapolis or Phoenix?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Phoenix charges ~12.57% combined transient lodging tax (state + county + city).
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Phoenix have day limits for Airbnb?
Indianapolis has no annual day limit. Phoenix has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Phoenix?
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. Phoenix charges $250/year (non-refundable) with ~12.57% combined transient lodging tax (state + county + city). Automatic tax collection in Indianapolis and Phoenix makes compliance easier for beginners.