Indianapolis vs Scottsdale

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
Scottsdale, Arizona
Status Legal with Permit
Permit Fee $250/year
Tax Rate ~14.27% combined transient occupancy tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months

Both cities have comparable STR regulatory environments.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Scottsdale charges $250/year. Indianapolis renewal is annual, and Scottsdale 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 Scottsdale, hosts pay ~14.27% combined transient occupancy 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 Scottsdale, violations can result in $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months. 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 →

Scottsdale Overview

Ordinance 4566 caps occupancy at 6 adults plus dependent children, requires 1 off-street parking space per bedroom, $500K liability insurance, and neighbor notification within 30 days. Special events and commercial uses prohibited.

Contact: Scottsdale Code Enforcement — (480) 312-2546

Full Scottsdale guide →

Frequently Asked Questions

Is it easier to Airbnb in Indianapolis or Scottsdale?
Indianapolis is classified as "Legal with Permit" while Scottsdale is "Legal with Permit." Indianapolis's permit fee is $150 one-time registration fee per property compared to $250/year in Scottsdale. Both cities have comparable regulatory frameworks.
Which city has higher STR taxes — Indianapolis or Scottsdale?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Scottsdale charges ~14.27% combined transient occupancy 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. Scottsdale: $500 first violation; $1,000 second; $3,500 third; license suspension after 3 in 12 months. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Scottsdale have day limits for Airbnb?
Indianapolis has no annual day limit. Scottsdale has no annual day limit.
Which city is better for first-time Airbnb hosts — Indianapolis or Scottsdale?
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. Scottsdale charges $250/year with ~14.27% combined transient occupancy tax (state + county + city). Automatic tax collection in Indianapolis and Scottsdale makes compliance easier for beginners.