Indianapolis vs Santa Fe

Indiana Legal with Permit | New Mexico 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
Santa Fe, New Mexico
Status Legal but Limited
Permit Fee $100 one-time application + $325/year permit and business license
Tax Rate ~8.44% gross receipts tax + 7.1% lodgers' tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $500/day for operating without permit

Indianapolis has more favorable STR regulations overall.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Santa Fe charges $100 one-time application + $325/year permit and business license. Indianapolis renewal is annual, and Santa Fe renewal is annual. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Santa Fe (Legal but Limited).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Santa Fe, hosts pay ~8.44% gross receipts tax + 7.1% lodgers' 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 Santa Fe, violations can result in Up to $500/day for operating without permit. 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 →

Santa Fe Overview

Residential zone STRs capped at 1,000 citywide permits; one per person; must be 50+ feet from another STR. Rentals limited to once per 7-day period (except Nov 15–Jan 15). Local operator must respond within 1 hour.

Contact: Santa Fe Land Use Dept. — (505) 955-6639

Full Santa Fe guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Santa Fe?
Indianapolis is classified as "Legal with Permit" while Santa Fe is "Legal but Limited." Indianapolis's permit fee is $150 one-time registration fee per property compared to $100 one-time application + $325/year permit and business license in Santa Fe. Overall, Indianapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Indianapolis or Santa Fe?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Santa Fe charges ~8.44% gross receipts tax + 7.1% lodgers' tax.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Santa Fe: Up to $500/day for operating without permit. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Santa Fe have day limits for Airbnb?
Indianapolis has no annual day limit. Santa Fe has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Santa Fe?
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. Santa Fe charges $100 one-time application + $325/year permit and business license with ~8.44% gross receipts tax + 7.1% lodgers' tax. Automatic tax collection in Indianapolis and Santa Fe makes compliance easier for beginners.