Indianapolis vs San Diego

Indiana Legal with Permit | California 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
San Diego, California
Status Legal with Permit
Permit Fee Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license)
Tax Rate 11.75%–13.75% TOT (varies by zone proximity to Convention Center)
Day Limit 20 days/year
Renewal Biennial
Platform Tax Yes
Max Fine $1,000 per violation; criminal misdemeanor charges for continued violations

Both cities have comparable STR regulatory environments.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while San Diego charges Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license). Indianapolis renewal is annual, and San Diego renewal is biennial. 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 San Diego, hosts pay 11.75%–13.75% TOT (varies by zone proximity to Convention Center). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

San Diego imposes a 20-night annual limit, while Indianapolis has no annual cap — a significant advantage for high-volume hosts.

Fines & Enforcement

Hosts operating without a permit in Indianapolis face penalties including Up to $500 per violation; permit revocation after three violations. In San Diego, violations can result in $1,000 per violation; criminal misdemeanor charges for continued 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 →

San Diego Overview

Four-tier license system with caps: Tier 3 limited to 1% of housing units; Tier 4 (Mission Beach) capped at 30% and at capacity. Only one license per host; licenses are non-transferable.

Contact: STRO Administration, City Treasurer — (619) 615-6120

Full San Diego guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or San Diego?
Indianapolis is classified as "Legal with Permit" while San Diego is "Legal with Permit." Indianapolis's permit fee is $150 one-time registration fee per property compared to Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license) in San Diego. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Indianapolis or San Diego?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while San Diego charges 11.75%–13.75% TOT (varies by zone proximity to Convention Center).
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. San Diego: $1,000 per violation; criminal misdemeanor charges for continued violations. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and San Diego have day limits for Airbnb?
Indianapolis has no annual day limit. San Diego limits STRs to 20 nights per year.
Which city is better for first-time Airbnb hosts — Indianapolis or San Diego?
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. San Diego charges Tier 1: $226; Tier 2: $317; Tier 3/4: $1,170 (includes application + license) with 11.75%–13.75% TOT (varies by zone proximity to Convention Center). Automatic tax collection in Indianapolis and San Diego makes compliance easier for beginners.