Indianapolis vs Washington DC
Indiana Legal with Permit | District of Columbia Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Indianapolis, Indiana | Washington DC, District of Columbia |
|---|---|---|
| Legality Status | Legal with Permit | Legal but Limited |
| Permit Fee | $150 one-time registration fee per property | $104.50 for 2-year license |
| Tax Rate | 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined) | 14.5% combined (sales tax on accommodations + transient lodging tax) |
| Annual Day Limit | No limit | 90 days/year |
| Renewal Interval | Annual | Every 2 years |
| Platform Remits Taxes | Yes | Yes |
| Max Fine Example | Up to $500 per violation; permit revocation after three violations | $500 first violation; $2,000 second; $6,000 third + license revocation |
| Verdict | Indianapolis has more favorable STR regulations overall. | |
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
Washington DC, District of Columbia
Status Legal but Limited
Permit Fee $104.50 for 2-year license
Tax Rate 14.5% combined (sales tax on accommodations + transient lodging tax)
Day Limit 90 days/year
Renewal Every 2 years
Platform Tax Yes
Max Fine $500 first violation; $2,000 second; $6,000 third + license revocation
Indianapolis has more favorable STR regulations overall.
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.
Full Indianapolis guide →Washington DC Overview
Primary residence only (must qualify for Homestead Deduction). Hosted stays have no day cap. Vacation rentals (unhosted) capped at 90 nights/year. Must carry $250K liability insurance.
Full Washington DC guide →Frequently Asked Questions
Is it easier to Airbnb in Indianapolis or Washington DC?
Indianapolis is classified as "Legal with Permit" while Washington DC is "Legal but Limited." Indianapolis's permit fee is $150 one-time registration fee per property compared to $104.50 for 2-year license in Washington DC.
Which city has higher STR taxes — Indianapolis or Washington DC?
Indianapolis charges 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined), while Washington DC charges 14.5% combined (sales tax on accommodations + transient lodging tax). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Indianapolis: Up to $500 per violation; permit revocation after three violations. Washington DC: $500 first violation; $2,000 second; $6,000 third + license revocation.