STR Rule Watch

Short-Term Rental Laws in Indianapolis, IN (2026)

Permit requiredAllowed with permit

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.

✓ Last verified July 21, 2026 · 11 official sources

Reviewed by the STR Rule Watch research team against 11 official sources. How we verify data

Indianapolis STR rules at a glance

Key short-term rental facts for Indianapolis
Legal statusAllowed with permit
Permit requiredYes
Permit nameShort-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852)
Permit fee$150
RenewalAnnual
Owner occupancy requiredNo
Primary residence onlyNo
Total occupancy taxes~17% of gross revenue
EnforcementEnforced by the Department of Business & Neighborhood Services (DBNS). Sec. 852-108: non-compliant owners may be subject to enforcement actions including inspection, citations, and/or revocation of registration pursuant to IC 36-1-24. An inspection may be required as part of annual registration to verify the unit meets building codes and is safe and habitable. Applications are filed through the Accela Citizen Access Portal (accela9ca.indy.gov/citizenaccess).
Current rules effective2025-01-01

What will guests pay in taxes on a Indianapolis stay?

Itemized occupancy taxes for Indianapolis, IN — enter your nightly rate to see the real cost breakdown.

Indianapolis occupancy tax calculator

Gross rent$450.00
Indiana Sales Tax (state gross retail tax) (7%)· usually collected by platform$31.50
Marion County Innkeeper's Tax (CIT) (10%)· usually collected by platform$45.00
Total tax (17%)$76.50
Guest pays$526.50

Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.

Permits & licensing

Indianapolis requires Short-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852) to operate a short-term rental — the fee is $150, renewed annual.

One-time $150 fee per unit for the initial permit (and again for re-issuance after a revocation). Annual renewals are free — Indiana Code 36-1-24-13 prohibits charging any renewal fee and caps the permit fee at $150. The city's third-party payment processor adds 3.2% for credit card payments or $0.95 for e-check.

Zoning & location rules

STRs are allowed in any zone that permits residential use. Indiana Code 36-1-24-8 makes owner-occupied STRs a permitted residential use that no zoning ordinance may disallow; non-owner-occupied STRs may in theory be subject to a special exception under IC 36-1-24-9, but Indianapolis does not impose one — Sec. 852-106(1) states short-term rentals are not required to obtain development plan approval. Units must be legally built dwellings (primary building per Sec. 740-202 or secondary dwelling unit per Sec. 743-306(GG)); RVs, mobile homes, travel trailers, automobiles, and shipping containers are prohibited structure types. No overlay districts restrict STRs.

Taxes

TaxRateWho collects
Indiana Sales Tax (state gross retail tax)Applies to rentals of accommodations for fewer than 30 consecutive days. Marketplace facilitators (Airbnb, Vrbo, OTAs) are required by law to collect and remit on behalf of hosts and this cannot be contracted away; hosts taking direct bookings must register as retail merchants and collect it themselves (limited exemption for primary residences rented fewer than 15 days/year with no marketplace bookings).7%platform
Marion County Innkeeper's Tax (CIT)10% rate effective 09/01/2009, remitted to the Indiana Department of Revenue (state-collected county). Marketplace facilitators must collect and submit CIT directly to DOR; hosts booking directly must collect and remit it themselves. Combined with sales tax, guests pay 17% total.10%platform

Enforcement & penalties

Enforced by the Department of Business & Neighborhood Services (DBNS). Sec. 852-108: non-compliant owners may be subject to enforcement actions including inspection, citations, and/or revocation of registration pursuant to IC 36-1-24. An inspection may be required as part of annual registration to verify the unit meets building codes and is safe and habitable. Applications are filed through the Accela Citizen Access Portal (accela9ca.indy.gov/citizenaccess).

No specific fine amounts are set in Chapter 852 (violations are handled as ordinance-violation citations). Under IC 36-1-24-14, if 3 or more citations are issued for a permitted property within a calendar year, the city may revoke the permit for up to 1 year after notice and a hearing. Re-permitting after revocation requires paying all outstanding fines (IC 36-1-24-16) plus a new $150 fee.

⚠️ HOA/condo rules may prohibit STRs regardless of city law.

Getting legal in Indianapolis: the playbook

Generated from this market's verified rules — each step traces to the sources at the bottom of this page.

  1. 1

    Verify your zoning

    Location rules apply: STRs are allowed in any zone that permits residential use. Indiana Code 36-1-24-8 makes owner-occupied STRs a permitted residential use that no zoning ordinance may disallow; non-owner-occupied STRs may in theory be subject to a special exception under IC 36-1-24-9, but Indianapolis does not impose one — Sec. 852-106(1) states short-term rentals are not required to obtain development plan approval. Units must be legally built dwellings (primary building per Sec. 740-202 or secondary dwelling unit per Sec. 743-306(GG)); RVs, mobile homes, travel trailers, automobiles, and shipping containers are prohibited structure types. No overlay districts restrict STRs. Confirm your parcel's zoning with the city before applying.

  2. 2

    Check the covenant layer

    HOA/condo rules may prohibit STRs regardless of city law.

  3. 3

    Apply for the Short-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852)

    Budget $150 (annual renewal). One-time $150 fee per unit for the initial permit (and again for re-issuance after a revocation). Annual renewals are free — Indiana Code 36-1-24-13 prohibits charging any renewal fee and caps the permit fee at $150. The city's third-party payment processor adds 3.2% for credit card payments or $0.95 for e-check. Apply through the city — the official application page is linked in the sources below.

  4. 4

    Set up tax collection & remittance

    The taxes on this market (Indiana Sales Tax (state gross retail tax) 7%, Marion County Innkeeper's Tax (CIT) 10%) are typically platform-collected on major platforms — but direct bookings are always your responsibility to remit.

  5. 5

    Calendar the renewal before you forget it

    This permit renews annual (budget $150 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.

  6. 6

    Know the cost of getting it wrong

    No specific fine amounts are set in Chapter 852 (violations are handled as ordinance-violation citations). Under IC 36-1-24-14, if 3 or more citations are issued for a permitted property within a calendar year, the city may revoke the permit for up to 1 year after notice and a hearing. Re-permitting after revocation requires paying all outstanding fines (IC 36-1-24-16) plus a new $150 fee. Enforced by the Department of Business & Neighborhood Services (DBNS). Sec. 852-108: non-compliant owners may be subject to enforcement actions including inspection, citations, and/or revocation of registration pursuant to IC 36-1-24. An inspection may be required as part of annual registration to verify the unit meets building codes and is safe and habitable. Applications are filed through the Accela Citizen Access Portal (accela9ca.indy.gov/citizenaccess).

Recent rule changes in Indianapolis

  1. July 1, 2026

    Indiana HEA 1210 took effect — statewide ban on local rental-property caps

    House Enrolled Act 1210 (signed by Gov. Braun March 12, 2026; effective July 1, 2026) prohibits Indiana cities and counties from capping the number of residential rental properties, long-term or short-term, and retroactively excludes local bed-and-breakfast definitions from applying to STRs. Registration, permitting, inspections, and safety standards remain allowed if they do not function as de facto caps, and the $150 state cap on STR permit fees is unchanged. No practical effect on Indianapolis, which imposes no caps — its Chapter 852 permit program remains valid — but the law further locks in the no-caps regime reflected in this record (max_units_per_owner: null).

    Official source →

  2. January 1, 2025material

    Short-Term Rental Permit Program took effect

    Chapter 852 became effective January 1, 2025; all Indianapolis STR units now require an annual permit from the Department of Business & Neighborhood Services, applied for via the Accela Citizen Access Portal. Previously, Indianapolis had no city STR permit requirement.

    Official source →

  3. August 14, 2024material

    General Ordinance No. 25, 2024 adopted — Short-Term Rental Permit Program created

    The City-County Council passed Proposal No. 205, 2024 on August 12, 2024 (23-2 vote) and Mayor Hogsett signed it August 14, 2024, adding Chapter 852 (Indianapolis Short-Term Rental Permit Program) to the Revised Code: individual annual permits per STR unit through DBNS, $150 initial fee, free renewals, and enforcement under IC 36-1-24.

    Official source →

Frequently asked questions

›Is Airbnb legal in Indianapolis?

Yes — Airbnb and other short-term rentals are legal in Indianapolis, IN, but you must obtain a Short-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852) before operating. Always confirm current requirements with the city before operating.

›Do I need a permit for a short-term rental in Indianapolis?

Yes. Indianapolis requires a Short-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852) to operate a short-term rental, which costs $150 and must be renewed every year. Always confirm current requirements with the city before operating.

›How much does a Indianapolis short-term rental permit cost?

The Short-Term Rental Permit (Indianapolis Short-Term Rental Permit Program, Revised Code Chapter 852) costs $150 (annual renewal). One-time $150 fee per unit for the initial permit (and again for re-issuance after a revocation). Annual renewals are free — Indiana Code 36-1-24-13 prohibits charging any renewal fee and caps the permit fee at $150. The city's third-party payment processor adds 3.2% for credit card payments or $0.95 for e-check.

›Can I Airbnb a non-primary residence in Indianapolis?

Yes — Indianapolis does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.

›What taxes do short-term rental hosts pay in Indianapolis?

Hosts in Indianapolis are subject to: Indiana Sales Tax (state gross retail tax) (7%), Marion County Innkeeper's Tax (CIT) (10%) — roughly 17% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

›Does Airbnb collect taxes automatically in Indianapolis?

Yes — the listed taxes (Indiana Sales Tax (state gross retail tax), Marion County Innkeeper's Tax (CIT)) are collected and remitted by the platform in Indianapolis. Confirm in your platform tax settings, since collection agreements change.

›What happens if I operate a short-term rental illegally in Indianapolis?

No specific fine amounts are set in Chapter 852 (violations are handled as ordinance-violation citations). Under IC 36-1-24-14, if 3 or more citations are issued for a permitted property within a calendar year, the city may revoke the permit for up to 1 year after notice and a hearing. Re-permitting after revocation requires paying all outstanding fines (IC 36-1-24-16) plus a new $150 fee. Enforced by the Department of Business & Neighborhood Services (DBNS). Sec. 852-108: non-compliant owners may be subject to enforcement actions including inspection, citations, and/or revocation of registration pursuant to IC 36-1-24. An inspection may be required as part of annual registration to verify the unit meets building codes and is safe and habitable. Applications are filed through the Accela Citizen Access Portal (accela9ca.indy.gov/citizenaccess).

›When did Indianapolis's current short-term rental rules take effect?

The current ordinance took effect on January 1, 2025. See the change timeline on this page for amendments since, and the sources section for the official text.

Indianapolis's STR rules changed 3 times recently.

Get an email the moment Indianapolis changes its short-term rental rules — plus renewal reminders before your permit expires.

Watch Indianapolis for changes →

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This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Indianapolis and a qualified professional before operating.

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