Can I Airbnb in Indianapolis, IN? (2026)
Short-term rentals (under 30 days) are legal citywide in Indianapolis, but since January 1, 2025 every STR unit must hold an annual Short-Term Rental Permit from the Department of Business & Neighborhood Services ($150 one-time fee; free annual renewals). Indiana state law (IC 36-1-24) protects owner-occupied STRs as a permitted residential use and caps local regulation, so there are no owner-occupancy rules, night caps, or unit limits. Guests pay 17% in taxes: 7% Indiana sales tax plus the 10% Marion County innkeeper's tax, both collected and remitted by platforms like Airbnb and Vrbo.
What’s required: a Short-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852) ($150) is required; occupancy taxes apply; renew annual.
Check a specific address
Rules can vary by zone and parcel. Resolve any Indiana street address to its jurisdiction and see the verified rules that apply.
Related
Verified July 21, 2026. Informational only — not legal, tax, or financial advice. Also check HOA/condo rules and your lease, which can prohibit short-term rentals even where the city allows them.