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Indianapolis

Indiana · United States
Pending
Last updated: 2026-07-30  ·  Last verified: 2026-07-30  ·  Region: US

At a Glance — Indianapolis Airbnb & STR Rules

RuleDetails
Regulatory StatusProposed / pending
Permit / License RequiredNot currently required at city level
Tax RateIndiana state sales tax (7%) + Marion County Innkeeper's Tax. Hosts must register with the Indiana Department of Revenue and obtain a Retail Merchant
Night / Day CapNone; STR defined as rental for fewer than 30 consecutive days
Minimum StayNone (state definition: less than 30 consecutive days)
Permit Fee$150 one-time initial permit fee (capped by Indiana state law IC 36-1-24). Annual renewal fee: $0. Separate permits required per property for owners w
PenaltiesNot specified — no ordinance in effect
Occupancy LimitMust comply with zoning and building code standards. Specific numeric limit not confirmed in available ordinance text.
Browse all 5 STR regulations in Indiana → Browse all 535 STR regulations in United States →

Indianapolis Airbnb & Vacation Rental Regulation Overview

Indianapolis Short-Term Rental Regulations Overview

Short-term rental regulations in Indianapolis, Indiana are currently under development or pending approval as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Not currently required at city level. The associated permit fees are $150 one-time initial permit fee (capped by Indiana state law IC 36-1-24). Annual renewal fee: $0. S.

Tax Requirements for Airbnb Hosts in Indianapolis

Short-term rental operators in Indianapolis should be aware of these tax obligations: Indiana state sales tax (7%) + Marion County Innkeeper's Tax. Hosts must register with the Indiana Department of Revenue and obtain a Retail Merchant Certificate (RRMC) for tax collection and remittance..

Hosting Rules and Restrictions in Indianapolis

Key operational rules for vacation rental hosts in Indianapolis include: Rental day cap: None; STR defined as rental for fewer than 30 consecutive days. Occupancy limit: Must comply with zoning and building code standards. Specific numeric limit not confirmed in available ordinance text.. Minimum stay: None (state definition: less than 30 consecutive days).

Zoning and Location Requirements in Indianapolis

Zoning considerations for short-term rentals in Indianapolis: STRs must be in legally built units compliant with local zoning and building codes. Non-primary-residence STRs may require a special exception, special use permit, or zoning variance. Some zones may h. Density rules: Some areas have density caps or additional restrictions — verify with Indianapolis Department of Metropolitan Development.

Penalties for Non-Compliance in Indianapolis

Hosts who fail to comply with Indianapolis's short-term rental regulations may face enforcement action. Not specified — no ordinance in effect.

Platform Obligations in Indianapolis

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Indianapolis: Registration number must be added to Airbnb/VRBO listings. Permit information must be accessible on listing. Hotels/motels and long-term stays (30+ consecutive days) are exempt from STR permit require.

Full Regulatory Details

Regulatory Status
Pending
License / Registration
Not currently required at city level
Tax Registration
Yes
Permit Fee
$150 one-time initial permit fee (capped by Indiana state law IC 36-1-24). Annual renewal fee: $0. Separate permits required per property for owners with multiple STRs.
Night / Day Cap
None; STR defined as rental for fewer than 30 consecutive days
Occupancy Limit
Must comply with zoning and building code standards. Specific numeric limit not confirmed in available ordinance text.
Tax Rate
Indiana state sales tax (7%) + Marion County Innkeeper's Tax. Hosts must register with the Indiana Department of Revenue and obtain a Retail Merchant Certificate (RRMC) for tax collection and remittance.
Zoning Restrictions
STRs must be in legally built units compliant with local zoning and building codes. Non-primary-residence STRs may require a special exception, special use permit, or zoning variance. Some zones may have density restrictions.
Minimum Stay
None (state definition: less than 30 consecutive days)
Density Rules
Some areas have density caps or additional restrictions — verify with Indianapolis Department of Metropolitan Development
Platform Obligations
Registration number must be added to Airbnb/VRBO listings. Permit information must be accessible on listing. Hotels/motels and long-term stays (30+ consecutive days) are exempt from STR permit requirements.
Compliance Notes
Indianapolis currently lacks a comprehensive STR licensing or registration ordinance. A July 26, 2026 shooting at a large-scale rental party (approximately 300 guests) on North Delaware Street has renewed calls for regulation, with the property owner claiming Vrbo bore responsibility for guest safety. No ordinance has been introduced as of July 30, 2026, but the incident is expected to accelerate council discussion.
Effective Date
2025-01-01 (ordinance passed August 2024, effective January 2025)
Key Notes
No current local STR permit requirement in Indianapolis. July 26 shooting at ~300-person rental party wounded a 15-year-old. Property owner claimed platform liability. No ordinance introduced yet. Indiana passed STR preemption law in 2026 limiting local bans/caps, which may constrain city options.
Penalties
Not specified — no ordinance in effect
Additional Context
Indiana enacted STR preemption legislation in 2026, which may limit Indianapolis's ability to impose caps or outright bans, though safety and registration requirements may still be permissible.
📋 Apply / Register with the Official Authority

Apply for your STR permit or registration directly through the official government portal.

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Frequently Asked Questions

Is Airbnb legal in Indianapolis?

Short-term rental regulations in Indianapolis are currently under development. Rules may change as legislation is finalized. Indianapolis currently lacks a comprehensive STR licensing or registration ordinance. A July 26, 2026 shooting at a large-scale rental party (approximately 300 guests) on North Delaware Street has ren

Do you need a permit for Airbnb in Indianapolis?

Yes. Indianapolis requires the following for short-term rental operation: Not currently required at city level.

What taxes apply to short-term rentals in Indianapolis?

Short-term rental hosts in Indianapolis are subject to the following tax obligations: Indiana state sales tax (7%) + Marion County Innkeeper's Tax. Hosts must register with the Indiana Department of Revenue and obtain a Retail Merchant Certificate (RRMC) for tax collection and remittance..

What are the penalties for illegal Airbnb hosting in Indianapolis?

Hosts who operate without proper permits in Indianapolis may face enforcement. Not specified — no ordinance in effect.

What are the key STR compliance requirements in Indianapolis?

No current local STR permit requirement in Indianapolis. July 26 shooting at ~300-person rental party wounded a 15-year-old. Property owner claimed platform liability. No ordinance introduced yet. Indiana passed STR preemption law in 2026 limiting local bans/caps, which may constrain city options.

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