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.

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.

Permits & Licensing

Indianapolis charges $150 one-time registration fee per property for STR licensing, while Washington DC charges $104.50 for 2-year license. Indianapolis renewal is annual, and Washington DC renewal is every 2 years. Overall, Indianapolis has a more permissive regulatory environment (Legal with Permit) compared to Washington DC (Legal but Limited).

Tax Obligations

In Indianapolis, hosts pay 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). In Washington DC, hosts pay 14.5% combined (sales tax on accommodations + transient lodging tax). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Washington DC imposes a 90-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 Washington DC, violations can result in $500 first violation; $2,000 second; $6,000 third + license revocation. 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 →

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.

Contact: DC DLCP Short-Term Rental Hotline — (202) 221-8550

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. Overall, Indianapolis has a more host-friendly regulatory environment.
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).
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. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Indianapolis and Washington DC have day limits for Airbnb?
Indianapolis has no annual day limit. Washington DC limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Indianapolis or Washington DC?
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. Washington DC charges $104.50 for 2-year license with 14.5% combined (sales tax on accommodations + transient lodging tax). Automatic tax collection in Indianapolis and Washington DC makes compliance easier for beginners.