Two state laws that took effect on July 1, 2026 take power away from cities and counties over short-term rentals. Idaho's goes much further than Indiana's.
Idaho: No Local Permits at All
House Bill 583, signed on March 16, 2026, amended Idaho Code 67-6539. Since July 1, 2026:
- No license, fee, permit, certification or registration. A city or county may not require any of these to operate a short-term rental (67-6539(5)).
- No owner-occupancy rule for any length of time (67-6539(2)(a)(i)).
- No caps or spacing rules on how many rentals there are or how close they are to each other.
- No inspections, neighbor notices, or conditional use permits in a residential zone.
- A short-term rental counts as a residential use.
Cities may still require a short list of safety items by ordinance: smoke alarms in sleeping areas, a fire extinguisher and a carbon monoxide detector on each floor, escape ladders for upper-floor bedrooms with windows, occupancy within building-code residential limits, and a guest handout with exits, safety equipment locations and an emergency number. Noise, parking, nuisance and traffic rules apply to rentals the same way they apply to any home.
Cities have already dropped their programs. Boise repealed its short-term rental license effective May 18, 2026 (City of Boise). McCall stopped requiring permits and inspections on July 1, 2026 (City of McCall).
Taxes still apply. Hosts owe 6% Idaho sales tax and 2% travel and convention tax, plus any local option or auditorium district tax. Owners who take bookings directly must now collect like a marketplace does (Idaho Code 63-1804(5)) (Idaho State Tax Commission). In Boise the total is 13% inside the auditorium district. In McCall it is 16%.
Indiana: No Local Caps, Permits Stay Limited
Indiana already limited local rules under IC 36-1-24, passed in 2018. It sets the following:
- Permits: a city, town or county may require one permit per property, costing no more than $150, with no renewal fee. The permit lasts one year and does not pass to a buyer.
- Owner-occupied rentals: a permitted use in any zone that allows homes.
- Other rentals in residential zones: may need a special exception or variance.
- Local rules: limited to listed health, safety and nuisance purposes.
HEA 1210-2026 added IC 36-1-20-3.6. From July 1, 2026, local governments may not adopt or enforce rules that prohibit or restrict an owner from renting a home, including caps. There are two exceptions:
- Older rules: rules adopted before January 1, 2026 that conflict can be enforced until January 1, 2028.
- Pre-2018 ordinances: places whose short-term rental ordinances date from before January 1, 2018 are exempt.
Renting without a required local permit is a Class C infraction, up to $500 for each booking. A permit can be revoked for up to a year after three or more citations in a calendar year.
Taxes: guests pay 7% state sales tax plus a county innkeeper's tax of 3% to 10% on stays under 30 days. Platforms collect both (Indiana Department of Revenue, innkeeper's tax).
What This Means
- In Idaho, there is no city permit to get, but state tax permits and local safety and nuisance rules still apply.
- In Indiana, check whether your city or county has a permit ordinance, and when it was adopted. A cap adopted before 2026 may still be enforced until 2028, and a pre-2018 ordinance may be exempt.
Check the Rules on LawfulStay
LawfulStay tracks short-term rental rules place by place. Each place page shows where each rule comes from and when it was last checked.
Indiana statewide rules, Boise and McCall on LawfulStay.