Short-Term Rental Regulations — Indiana
Hosts in Indianapolis must obtain a permit before listing their property on platforms like Airbnb or VRBO. The permit fee is $150, renewable Annual. Indianapolis allows non-owner-occupied short-term rentals, giving investors and property managers more flexibility. There is no annual day cap on rentals in Indianapolis. An occupancy tax of 10% applies to all short-term rental income. Airbnb and VRBO collect and remit this tax automatically.
Day Limit Notes
State law limits cities from banning STRs but permits are required.
⚠ Tax Notes
10% Marion County Innkeeper's Tax plus 7% State Sales Tax.
⚠ Prohibited Zones
None, per state preemption.
Do I need a permit to run an Airbnb in Indianapolis?
Yes. Indianapolis requires a permit to operate a short-term rental. The permit fee is $150 and must be renewed Annual. You must obtain this permit before listing your property on Airbnb, VRBO, or other platforms.
What is the occupancy tax rate for short-term rentals in Indianapolis?
Short-term rentals in Indianapolis are subject to a 10% occupancy tax. Airbnb and VRBO automatically collect and remit this tax on behalf of hosts — you do not need to handle it separately. 10% Marion County Innkeeper's Tax plus 7% State Sales Tax.
Can I rent out a property I don't live in as an Airbnb in Indianapolis?
Yes. Indianapolis allows non-owner-occupied short-term rentals, meaning you can list investment properties or second homes that you do not personally occupy.
How many days per year can I rent my property in Indianapolis?
Indianapolis does not impose an annual day cap on short-term rentals. You can rent your property for as many days as you choose, subject to other local regulations. State law limits cities from banning STRs but permits are required.
Does Airbnb collect occupancy taxes in Indianapolis?
Yes. Airbnb and VRBO automatically collect and remit the 10% occupancy tax in Indianapolis on behalf of hosts. You do not need to separately collect or remit this tax — it is handled at the platform level.
Are there any prohibited zones for short-term rentals in Indianapolis?
Yes. Indianapolis prohibits short-term rentals in certain areas: None, per state preemption.. Always verify your property's zoning status with the local planning department before listing.
Do I need to register my short-term rental in Indianapolis?
Yes. Indianapolis requires short-term rental hosts to register their property with the city. This is separate from any permit requirement and typically involves providing property information and contact details to the local authority.
Official Source
Indianapolis City Government
Last verified: 2026-03-23 · Always confirm with your local government before listing.