Indiana Short-Term Rental Laws by City (2026)
Short-term rental rules in Indiana are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 1 Indiana city (1 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in Indiana
Indiana has no statewide short-term rental permit or registration; STRs are regulated (if at all) by cities and counties, but state law sharply limits what locals can do. Under IC 36-1-24 (enacted 2018), an owner-occupied STR is a permitted residential use that zoning cannot disallow, local permits are capped at $150 with free renewals, and units with pre-2018 STR ordinances are grandfathered; a new law, HEA 1210 (effective July 1, 2026, IC 36-1-20-3.6), additionally bars localities from capping or restricting residential rental use, with pre-2026 ordinances given until January 1, 2028 to comply. Hosts owe Indiana's 7% state sales tax plus a county innkeeper's tax (3%-10%, varies by county), and marketplace platforms such as Airbnb/Vrbo have been required to collect both since July 1, 2019.
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Indianapolis | Permit required | $150 | July 21, 2026 |
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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.