Indianapolis, Indiana
Legal with Permit
Updated February 2026
Disclaimer: General information only — not legal advice. Verify with your local government.
Key Facts
| 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 annual limit |
| Renewal | Annual |
| Platform Tax Collection | Yes — platforms collect |
| Max Fine | Up to $500 per violation; permit revocation after three violations |
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.
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Frequently Asked Questions
Is Airbnb legal in Indianapolis, Indiana?
Short-term rentals in Indianapolis are currently classified as "Legal with Permit." 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.
How much is the STR permit in Indianapolis?
The permit/license fee in Indianapolis is $150 one-time registration fee per property. Renewal is annual.
What taxes do Airbnb hosts pay in Indianapolis?
Hosts in Indianapolis are subject to 7% Indiana sales tax + 10% Marion County innkeeper's tax (17% combined). Major platforms like Airbnb automatically collect and remit these taxes.
What are the fines for illegal short-term rentals in Indianapolis?
Penalties in Indianapolis can include Up to $500 per violation; permit revocation after three violations. Always ensure you have the required permits before listing.
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Official Resources
Agency: Dept. of Business and Neighborhood Services — (317) 327-8700 | Visit Official Government Page →
Download Compliance Checklist
Get a printable PDF checklist with all the requirements for Indianapolis.