Indianapolis Short-Term Rental Regulations
| Permit | ✓ Required — Short-Term Rental Permit ($150) |
| Primary Residence | Not required |
| Annual Day Limit | No limit |
| Tax Rate | 17% |
| Max Penalty | $500 per violation |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Short-Term Rental Permit
| Fee | Amount |
|---|---|
| Initial cost | $150 |
| Renewal | $0 / Annual |
This permit type does not require primary residence.
Application Process
Apply online through the Department of Business and Neighborhood Services Citizen Access Portal. Inspection may be required. Contact: 317.327.8700, 9AM-4PM Monday-Friday.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Indiana State Sales Tax | 7% | Indiana Department of Revenue |
| Marion County Innkeeper's Tax | 10% | Marion County / Indiana Department of Revenue |
Combined rate: 17% of gross rental income.
Collection: Platforms (Airbnb, Vrbo) are required to collect and remit taxes on behalf of hosts. Hosts are liable if taxes are not collected.
Rental Limits
Indianapolis does not impose an annual cap on the number of nights you can rent.
Zoning & Restrictions
Permitted in legally built dwelling units meeting all applicable building code requirements. Allowed in primary buildings or conforming accessory buildings (secondary dwelling units). Prohibited in RVs, mobile homes, travel trailers, shipping containers, and non-permanent structures.
Insurance & Safety
Safety & Operating Requirements
- Must meet all applicable building code requirements
- Must be in a legally built dwelling unit
- Inspection may be required as part of annual registration
Penalties for Non-Compliance
Maximum penalty: $500 per violation.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Indianapolis:
- Meet safety requirements. Must meet all applicable building code requirements. Must be in a legally built dwelling unit. Inspection may be required as part of annual registration.
- Apply for Short-Term Rental Permit. Submit application + $150 fee.
- Register for tax accounts. Set up lodging tax accounts with Indiana Department of Revenue.
- Collect and remit taxes. 17% on all bookings.
- Renew annually. $0 renewal fee.
Official Sources
- Landlord and Short-Term Rental Registries | City of Indianapolis
- Chapter 852 - Indianapolis Short-Term Rental Permit Program | Code of Ordinances | Indianapolis - Marion County, IN | Municode Library
- County Innkeeper's Tax | Indiana Department of Revenue
- Indiana Code Title 36, Article 1, Chapter 24 - Short Term Rentals