State Airbnb laws2026 23 sources cited

Indiana Short-Term Rental Laws & Hotel Tax by County (2026)

Short-term rentals are legal in Indiana: state law protects renting out your own home, there is no statewide license, and a city may charge at most $150 once for a permit. Airbnb collects the 7% state tax plus the county innkeeper's tax.1,4,16

Source: AirROI Reviewed by , Founder @ AirROI Rules checked

From 20 official sources, 1 Airbnb help page and 2 news reports. Not legal advice.

The short answer

Indiana Airbnb Laws in Brief

  • No statewide license; a city, town or county may require one permit per property, capped at $150 with no renewal fee (Indianapolis charges $150 once).
  • Renting your primary residence cannot be zoned out; homes you don't live in may need a special exception but cannot be banned.
  • Since July 1, 2026, local governments generally cannot cap or restrict residential rentals; older local rules have until January 1, 2028.
  • Taxes: 7% state sales tax plus a county innkeeper's tax of 3% to 10% (10% in Indianapolis); Airbnb collects both.

At a glance

Indiana Short-Term Rental Laws at a Glance

State license required
No
Tax on a stay
7%–17%
Next rule change
Nov 1, 2026

The laws in brief

The rules an Indiana host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Indiana Short-Term Rental Laws at a Glance
TopicRule
PermitLocal permit only where an ordinance requires one1
Who can hostYour primary residence is protected1,9
WhereHomes you don't live in: special exception allowed, not a ban1
Building rulesHOA and condo rules still apply1
Night capNo local rental caps since July 1, 20262,3
Minimum stayStays under 30 days booked through a platform1,12
Listing displayAdvertised price must be the total price6,15
PlatformsAirbnb collects state and county taxes21
NeighborsCities may require an emergency contact1

Your home

Can You Host an Airbnb in Indiana? It Depends on the Home

Whether you can host in Indiana turns on whose home it is and whether you live there.

Your own home, rented whole while you're away

Allowed

State law makes renting your primary residence a permitted residential use in any zone that allows homes. A city or town may ask for a permit (at most $150, no renewal fee) and must apply its safety and nuisance rules the same way as for other homes. Lodging taxes apply to stays under 30 nights.1,10

A room in your home with you present

Allowed

Renting a room in the home you live in is covered by the same primary-residence protection. A local permit is needed only where the city or town has adopted a permit ordinance, as Indianapolis has since January 1, 2025.1,16

A second home or investment property you don't live in

Allowed with conditions

A city or town may require a special exception, special use or zoning variance, but may not prohibit or unreasonably restrict the rental. Since July 1, 2026 local rules that cap or restrict residential rentals cannot be adopted or enforced, with older local rules exempt until January 1, 2028.1,2

A home in an HOA or condo association

Allowed with conditions

Association rules are not overridden by state law, so the governing documents decide. Only association members who use their property as a homestead may vote on a rule that restricts renting.1,3

A rented apartment (tenant hosting)

Allowed with conditions

The lease and landlord decide. State law defines an owner as a person with an interest in title or a present possessory interest, and a local permit application must be made by an owner.1

Permit

Do You Need a License for Airbnb in Indiana?

No. Owners in a city, town or county that has adopted a permit ordinance, such as Indianapolis since January 1, 2025. Indiana has no statewide license.1,4,16

Issued by
City, town or county (in Indianapolis, the Department of Business and Neighborhood Services)
Valid for
A local permit expires one year after it is issued, renews at no charge and cannot be transferred to a new owner.
Processing
A city or town must issue the permit within 30 days of receiving a complete application.

Fees

Fees
FeeAmount
Initial local permit (state maximum)State law lets a city or town charge up to $150 for the first permit, or for a new permit after a revocation. Indianapolis charges the full $150.$150
Local permit renewalA city or town may not charge a fee to renew a permit, including an expired one.$0
Indiana retail merchant certificate (direct bookings only)Registration fee per place of business for hosts who take bookings outside Airbnb; renewal is free while returns are filed.$25

Who qualifies

  • The owner (or an officer or agent of an owner that is a company) must apply
  • One permit per property covers every dwelling unit and accessory structure offered for rent
  • The permit does not transfer when the property is sold; the new owner applies again
  • Indianapolis: the unit must be a legally built dwelling that meets building code

How to apply

  1. Ask the city, town or county planning, building or neighborhood services office whether it has a short-term rental permit ordinance.
  2. Apply as the owner, giving contact details, any property manager, the advertised occupancy limit and the type of home.
  3. Pay the fee (at most $150); the city or town must issue the permit within 30 days of a complete application.
  4. Register with the Department of Revenue through INBiz for a retail merchant certificate if you take any booking outside Airbnb.

Permit rules

Local permit only where an ordinance requires one
Indiana has no statewide short-term rental license. A city, town or county may require one permit per property by adopting an ordinance.1 In force since July 1, 2018
Permit fee capped at $150, no renewal fee
A local permit may cost no more than $150 for the first permit (or one issued after a revocation), and a renewal, including renewal of an expired permit, is free.1 In force since July 1, 2018
Renewals cannot be charged
A unit may not charge a permit fee for renewing a permit, including renewal of a permit that has expired.1 In force since July 1, 2018
Permit issued within 30 days
A city or town must issue the permit within 30 days of receiving a complete application that meets its ordinance.1 In force since July 1, 2018
Permit lasts one year and does not transfer
A local permit expires one year after it is issued, and a new owner of the property must apply for a new one.1 In force since July 1, 2018
Revocation after three citations in a year
A city or town may revoke a permit for up to one year when three or more ordinance citations are issued for the property within a calendar year, after notice and a hearing.1 In force since July 1, 2018
Renting without a required permit is a Class C infraction
In a city or town that requires a permit, an owner who rents without a valid permit commits a Class C infraction.1 In force since July 1, 2018
Airbnb collects state and county taxes
Airbnb collects the 7% Indiana gross retail tax and the county innkeeper's tax on the listing price, cleaning fees and guest fees for reservations of 29 nights and shorter.21
Advertised price must be the total price
Since May 12, 2025 a federal rule requires any advertised price for a short-term rental to show the total price, including mandatory fees; taxes and other government charges may be shown separately.6,15 In force since May 12, 2025

Who can host

What Indiana Cities and Counties Can and Can't Regulate

Your primary residence is protected
A city, town or county cannot use zoning to ban short-term rental of the owner's primary residence in any zone that allows homes.1,9 In force since July 1, 2018
Homes you don't live in: special exception allowed, not a ban
For a rental that is not the owner's primary residence, a city or town may require a special exception, special use or zoning variance, but may not apply it to prohibit or unreasonably restrict short-term rentals.1 In force since July 1, 2018
Older local rules have until January 1, 2028
A unit that adopted a rule before January 1, 2026 that conflicts with the new rental-cap ban is exempt until January 1, 2028, and a unit with a compliant short-term rental ordinance adopted before January 1, 2018 is exempt.2 In force since July 1, 2026
Pre-2018 local ordinances keep their rules
The state short-term rental chapter does not apply to a city or town that adopted a zoning or other ordinance restricting short-term rentals before January 1, 2018, so rules differ by place.1 In force since July 1, 2018
HOA and condo rules still apply
State law does not override the rules of a homeowners association, condominium association, lake owners association or similar association, which can restrict or ban short-term rentals.1 In force since July 1, 2018
Only homestead owners vote on HOA rental limits
Under House Enrolled Act 1210 (2026), only association members who use their property as a homestead may vote on a homeowners association rule that prohibits or restricts renting property.3

Local rules

Local Rules in Indiana's 5 Largest Airbnb Markets

A state license doesn't replace local rules. Cities and counties still set registration, occupancy, parking and safety requirements. These are Indiana's largest markets by active Airbnb listings, with the share of each market's listings that display a registration or license number.

The largest markets and how each registers rentals
MarketLocal registration
Indianapolis Marion CountyRequired
South Bend St. Joseph CountyNone
Michigan City LaPorte CountyRequired
Lafayette Tippecanoe CountyRequired
Nashville Brown CountyRequired

  1. 1. Indianapolis

    Marion County

    Indianapolis requires an annual permit for each short-term rental unit, issued by the Department of Business and Neighborhood Services since January 1, 2025. The first permit costs $150 once and renewals are free, and the unit must be a legally built dwelling that meets building code. Marion County's innkeeper's tax is 10%, so lodging taxes on a stay total 17% with the 7% state tax.1,5,7,10,16

    • Annual permit for each unit; $150 once, no renewal fee
    • Unit must be a legally built dwelling that meets building code; an inspection may be required
    • Renting without the permit is a Class C infraction (up to $500)
    • Taxes: 7% state plus 10% Marion County innkeeper's tax

  2. 2. South Bend

    St. Joseph County

    South Bend's landlord registration excludes Airbnb-style rentals, so no city permit applies today. The Common Council passed two ordinances in September 2026 that require a $150 one-time city permit, an emergency contact and basic safety standards, plus a special zoning exception for new non-owner-occupied rentals; they are expected to take effect January 1, 2027. St. Joseph County's innkeeper's tax is 8%.10,20,23

    • No city short-term rental permit until the new ordinances start
    • Permit expected from January 1, 2027: $150 once, emergency contact, safety standards
    • New non-owner-occupied rentals will need a special zoning exception
    • Taxes: 7% state plus 8% St. Joseph County innkeeper's tax

  3. 3. Michigan City

    LaPorte County

    Michigan City requires every short-term rental owner to register for a certificate with Planning and Inspection, applied for through the city's Cloudpermit portal. Under the 2021 ordinance the permit is free, lasts one year and renews annually; operating without one draws fines of $250, $500 and $750 for later offenses. LaPorte County's innkeeper's tax is 5%.10,19,22

    • Registration certificate for each property, renewed yearly
    • No fee for the initial permit or renewal (2021 ordinance)
    • Fines for no permit: $250, then $500, then $750
    • Taxes: 7% state plus 5% LaPorte County innkeeper's tax

  4. 4. Lafayette

    Tippecanoe County

    Lafayette requires a transient rental registration permit with a $100 application fee under an ordinance in effect since 2018. Renting the whole home while the owner is away (a transient guest house) is barred from single-family R1 zones by a 2024 amendment to the county's Unified Zoning Ordinance (Amendment 112). Tippecanoe County's innkeeper's tax is 5%.8,10,18

    • Transient rental registration permit; $100 application fee
    • Owner-occupied homes may be rented up to 60 days a year while the owner is away (transient guest rental)
    • Whole-home rentals where the owner does not live are barred in R1 zones
    • Taxes: 7% state plus 5% Tippecanoe County innkeeper's tax

  5. 5. Nashville

    Brown County

    In unincorporated Brown County a short-term rental needs a Special Exception from the Board of Zoning Appeals, and rentals should sit at least 250 feet from the nearest residence and 1,320 feet from the nearest short-term rental. In the Town of Nashville eligibility depends on property zoning, and Home Stays (owner-occupied, up to two guest rooms) need a yearly Home Occupation permit. Brown County's innkeeper's tax is 8%.10,17

    • Special Exception from the Board of Zoning Appeals
    • County spacing: 250 feet from a residence, 1,320 feet from another rental
    • Home Stay (up to two rooms): yearly Home Occupation permit
    • Taxes: 7% state plus 8% Brown County innkeeper's tax

Taxes

Indiana Short-Term Rental Taxes

About 12% in most counties (7% state plus 5% county), 15% in South Bend, Fort Wayne, Evansville and Nashville (8% county) and 17% in Indianapolis (10% Marion County tax), on the nightly price plus cleaning and guest fees for stays under 30 nights.

Indiana Short-Term Rental Taxes
TaxRateCollected by
Indiana state sales (gross retail) tax 7% of the price of stays under 30 nights, including cleaning and guest fees7%13,21Airbnb
County innkeeper's tax Set by each county, from 3% to 10% (5% in most counties; 10% in Marion County, 8% in Allen, St. Joseph, Vanderburgh, Hamilton, Brown and Jefferson counties)—10,11,21Airbnb
Total on a stay 7%–17% · All by Airbnb

The county's share varies: the county table below has the rate for all 81 counties, and which ones Airbnb collects.

What the host still handles

  • An Indiana Department of Revenue Registered Retail Merchant Certificate through INBiz ($25 per place of business) if any booking is made outside Airbnb or another marketplace
  • A county innkeeper's tax account with the Department of Revenue (or with the county treasurer where the county collects it) for direct bookings
  • A $0 return for each filing period once registered, even in months with no rentals
  • A local business or rental registration where the city or town requires one (for example the Indianapolis short-term rental permit)10,11,12,13,21

Counties

Indiana Hotel Tax by County (2026 Rates)

A stay in Indiana carries the state rate plus the county's discretionary sales surtax and its local option taxes, such as the tourist development tax. Across the 81 counties the total runs from 7% to 17%.

Airbnb collects the state tax and surtax on every booking. It also collects the county's local taxes in 80 counties; in the other 1, the host registers for the county's tourist tax and files it with the county.

Indiana Hotel Tax by County (2026 Rates)
CountyTotal on a stayLocal taxesSurtax
Allen County innkeeper's tax 8%15%8%–
Bartholomew County innkeeper's tax 5%12%5%–
Boone County innkeeper's tax 8%15%8%–
Brown County innkeeper's tax 8%15%8%–
Carroll County innkeeper's tax adopted but not currently collected7%––
Cass County innkeeper's tax 3.5%10.5%3.5%–
Clark County innkeeper's tax 6%13%6%–
Clinton County innkeeper's tax 4%11%4%–
Crawford County innkeeper's tax 5%12%5%–
Daviess County innkeeper's tax 9%16%9%–
Dearborn County innkeeper's tax 5%12%5%–
Decatur County innkeeper's tax 5%12%5%–
DeKalb County innkeeper's tax 5%; rises to 8% on 2026-11-0112%5%–
Delaware County innkeeper's tax 5%12%5%–
Dubois County innkeeper's tax 5%12%5%–
Elkhart County innkeeper's tax 5%12%5%–
Fayette County innkeeper's tax 5%12%5%–
Floyd County innkeeper's tax 6%13%6%–
Franklin County innkeeper's tax 5%12%5%–
Fulton County innkeeper's tax 5%12%5%–
Gibson County innkeeper's tax 5%12%5%–
Grant County innkeeper's tax 5%12%5%–
Greene County innkeeper's tax 5%12%5%–
Hamilton County innkeeper's tax 8%15%8%–
Hancock County innkeeper's tax 5%12%5%–
Harrison County innkeeper's tax 4%11%4%–
Hendricks County innkeeper's tax 8%15%8%–
Henry County innkeeper's tax 5%12%5%–
Howard County innkeeper's tax 8%15%8%–
Huntington County innkeeper's tax 5%12%5%–
Jackson County innkeeper's tax 5%12%5%–
Jasper County innkeeper's tax 5%12%5%–
Jay County innkeeper's tax 5%12%5%–
Jefferson County innkeeper's tax 8%15%8%–
Jennings County innkeeper's tax 5%12%5%–
Johnson County innkeeper's tax 5%12%5%–
Knox County innkeeper's tax 8%15%8%–
Kosciusko County innkeeper's tax 5%12%5%–
LaGrange County innkeeper's tax 8%15%8%–
Lake County innkeeper's tax 5%12%5%–
LaPorte County innkeeper's tax 5%12%5%–
Lawrence County innkeeper's tax 5%12%5%–
Madison County innkeeper's tax 5%12%5%–
Marion County innkeeper's tax 10%17%10%–
Marshall County innkeeper's tax 5%12%5%–
Martin County innkeeper's tax 5%12%5%–
Miami County innkeeper's tax 5%12%5%–
Monroe County innkeeper's tax 5%12%5%–
Montgomery County innkeeper's tax 3%10%3%–
Morgan County innkeeper's tax 5%12%5%–
Noble County innkeeper's tax 5%; rises to 8% on 2027-01-0112%5%–
Ohio County innkeeper's tax 5%12%5%–
Orange County innkeeper's tax 4%; excludes a separate 2% state supplement on historic hotels11%4%–
Owen County innkeeper's tax 5%12%5%–
Parke County innkeeper's tax 8%15%8%–
Perry County innkeeper's tax 5%12%5%–
Pike County innkeeper's tax 5%12%5%–
Porter County innkeeper's tax 5%12%5%–
Posey County innkeeper's tax 5%12%5%–
Putnam County innkeeper's tax 5%12%5%–
Randolph County innkeeper's tax 5%12%5%–
Ripley County innkeeper's tax 5%12%5%–
Scott County innkeeper's tax 5%12%5%–
Shelby County innkeeper's tax 5%12%5%–
Spencer County innkeeper's tax 5%12%5%–
St. Joseph County innkeeper's tax 8%15%8%–
Starke County innkeeper's tax 5%12%5%–
Steuben County innkeeper's tax 5%12%5%–
Sullivan County innkeeper's tax 5%12%5%–
Switzerland County innkeeper's tax 5%12%5%–
Tippecanoe County innkeeper's tax 5%12%5%–
Union County innkeeper's tax 5%12%5%–
Vanderburgh County innkeeper's tax 8%15%8%–
Vermillion County innkeeper's tax 5%12%5%–
Vigo County innkeeper's tax 8%15%8%–
Wabash County innkeeper's tax 5%12%5%–
Warrick County innkeeper's tax 5%12%5%–
Washington County innkeeper's tax 5%12%5%–
Wayne County innkeeper's tax 5%12%5%–
Wells County innkeeper's tax 5%12%5%–
White County innkeeper's tax 5%12%5%–

Operating rules

Operating Rules for Indiana Short-Term Rentals

Local rules limited to safety and nuisance purposes
A city or town may regulate short-term rentals only for stated purposes such as fire and building safety, sanitation, traffic, noise, property maintenance and nuisance, enforced the same way as for similar properties that are not short-term rentals.1 In force since July 1, 2018
Cities may require an emergency contact
A city or town may require a short-term rental owner to give the unit an emergency contact.1 In force since July 1, 2018
No local rental caps since July 1, 2026
Since July 1, 2026, a city, town or county may not adopt or enforce a rule that prohibits or restricts an owner from using residential property as a rental property, or that has that effect. Health and safety rules, building and fire codes and reasonable occupancy standards still apply.2,3 In force since July 1, 2026
Stays under 30 days booked through a platform
State law defines a short-term rental as renting a home or unit for terms of less than 30 days at a time through a short-term rental platform; the same 30-night line applies to the state sales tax and the county innkeeper's tax.1,12 In force since July 1, 2018
Hosts renting off-platform may owe the taxes themselves
An owner whose guests do not pay through a marketplace facilitator such as Airbnb may be liable for collecting and remitting the state gross retail tax and the county innkeeper's tax.1 In force since July 1, 2019
Register as a retail merchant for direct bookings
Persons renting out accommodations for fewer than 30 consecutive days, including a home they own, must register as retail merchants and collect sales tax, unless an exemption such as the 15-day primary-residence rule applies.12 In force since July 1, 2019
Primary residence rented under 15 days
An owner who rents a primary residence for fewer than 15 days in the current or preceding calendar year, with no payment through a marketplace facilitator, is exempt from the sales tax and county innkeeper's tax.12 In force since July 1, 2019

Fines

How to Avoid Airbnb Fines in Indiana

Fines in Indiana fall on hosting outside the rules above. With the rules followed, none of the fines below apply.

  • Renting without a permit in a city or town that requires one is a Class C infraction, with a judgment of up to $500; each rental transaction without a permit counts as a separate violation.1,5
  • A permit can be revoked for up to one year after three or more ordinance citations in a calendar year, and a new permit is not issued until outstanding fines are paid.1
  • Late tax returns carry a penalty of up to 20%, with a minimum of $5, and a $0 return is still required for months without rentals.10

Changes

What's Changed in Indiana's Airbnb Rules, and What's Next

4 changes are scheduled after October 20, 2026; the most recent rules are listed first.

  1. January 1, 2028 Upcoming
    Grace period for older local rental limits ends

    Cities, towns and counties with rental limits adopted before January 1, 2026 must comply with the rental-cap ban from January 1, 2028; units with compliant short-term rental ordinances from before 2018 are exempt.2

  2. January 1, 2027 Upcoming
    Noble County innkeeper's tax rises to 8%

    Noble County's county innkeeper's tax rises from 5% to 8% on January 1, 2027.10

  3. January 1, 2027 Upcoming
    South Bend permit expected to take effect

    South Bend's short-term rental permit and zoning ordinances are expected to take effect on January 1, 2027.23

  4. November 1, 2026 Upcoming
    DeKalb County innkeeper's tax rises to 8%

    DeKalb County's county innkeeper's tax rises from 5% to 8% on November 1, 2026.10

  5. September 2026
    South Bend adopts a short-term rental permit

    South Bend's Common Council passed two ordinances requiring a city permit for short-term rentals ($150 one time) and a special zoning exception for new non-owner-occupied rentals.23

  6. July 1, 2026
    Local rental caps barred

    House Enrolled Act 1210 (Public Law 157-2026) took effect: cities, towns and counties may not adopt or enforce rules that prohibit or restrict residential rental use, with older local rules exempt until January 1, 2028.2,3

  7. July 1, 2025
    Brown County innkeeper's tax rises to 8%

    Brown County (Nashville) raised its county innkeeper's tax from 5% to 8% on July 1, 2025, collected by marketplace facilitators from September 1, 2025.10

  8. January 1, 2025
    Indianapolis short-term rental permit program begins

    Indianapolis owners must hold an annual permit for each short-term rental unit, with a one-time $150 fee and no renewal fee.16

  9. July 1, 2019
    Marketplace facilitators collect the county innkeeper's tax

    From July 1, 2019, platforms such as Airbnb collect the county innkeeper's tax on stays under 30 nights, and houses, condos and apartments rented short term fall under the sales and innkeeper's taxes.10,11

  10. July 1, 2018
    Indiana short-term rental law takes effect

    Indiana Code chapter 36-1-24 made renting an owner's primary residence a permitted residential use statewide and capped local permit fees at $150.1,9

Earnings

What Could a Short-Term Rental in Indiana Earn?

For a specific address, the Airbnb calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a home could earn

FAQ

Indiana Short-Term Rental Laws: Frequently Asked Questions

Is Airbnb legal in Indiana?

Yes. State law makes renting out an owner's primary residence a permitted use in any zone that allows homes, and Indiana has no statewide short-term rental license. Rules for homes you don't live in and local permits depend on the city or town.1

Do I need a permit for Airbnb in Indiana?

Only where your city, town or county requires one. State law lets a local government require one permit per property by ordinance; Indianapolis has done so since January 1, 2025, and South Bend's permit is expected to start on January 1, 2027.1,16,23

How much does a short-term rental permit cost in Indiana?

State law caps the first permit at $150 and bars any renewal fee. Indianapolis charges $150 once with no renewal fee, and Michigan City's permit is free.1,16,22

Can I rent a home I don't live in?

Yes, but a city or town may require a special exception, special use or zoning variance for a home that is not your primary residence. It may not use that process to prohibit or unreasonably restrict the rental.1

Can my city ban or cap short-term rentals?

Not for owner-occupied homes, and since July 1, 2026 a city, town or county may not adopt or enforce a rule that prohibits or restricts residential rentals. Local rules adopted before January 1, 2026 are exempt until January 1, 2028, and HOA rules still apply.1,2

Does Airbnb collect hotel or occupancy tax in Indiana?

Yes. Airbnb collects the 7% Indiana gross retail tax and the county innkeeper's tax on the listing price, cleaning fees and guest fees for reservations of 29 nights and shorter.21

What is the total lodging tax on an Airbnb stay in Indiana?

The 7% state sales tax plus a county innkeeper's tax of 3% to 10%, set by each county. That is about 12% in most counties and 17% in Indianapolis, where Marion County charges 10%.10,13

Do I need to register with the Indiana Department of Revenue?

If every guest pays through Airbnb, Airbnb collects and remits the taxes. For bookings made outside a marketplace, you register as a retail merchant through INBiz ($25 per place of business) and file returns, including $0 returns.4,11,12

Is there a tax exemption for occasional hosts?

An owner who rents a primary residence for fewer than 15 days in the current or preceding calendar year, with no payment through a marketplace facilitator, is exempt from the sales tax and county innkeeper's tax.12

What is the fine for renting without a permit in Indiana?

Where a permit is required, renting without one is a Class C infraction with a judgment of up to $500, and each rental transaction without a permit is a separate violation. Michigan City sets fines of $250, $500 and $750 for repeat offenses.1,5,22

Is there a limit on how many nights I can host?

State law sets no night cap, and since July 1, 2026 local governments generally cannot restrict residential rentals. A few places keep older rules, such as Lafayette's 60-day limit for owner-occupied homes rented while the owner is away.1,2,8

Can my HOA stop me from hosting?

Yes. State law does not override homeowners, condominium or similar association rules, although only members who use their property as a homestead may vote on a rental restriction.1,3

What is the hotel tax on an Airbnb in Indiana?

7% to 17% of the rent, depending on the county: the 7% state tax, the county surtax and any county tourist development tax. Airbnb collects all of it in 80 of the 81 counties; the county table on this page has each rate.

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. The Indianapolis ordinance (Municode) and the city's permit page were read in a browser because the check script cannot read them.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the state agency and your city or county has the final word on any application.

Sources

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

  1. 1. Indiana Code 36-1-24: Short Term Rentals · Indiana General Assembly
  2. 2. Indiana Code 36-1-20: Regulation of Residential Leases · Indiana General Assembly
  3. 3. House Enrolled Act 1210 (2026), Public Law 157-2026 · Indiana General Assembly
  4. 4. Indiana Code 6-2.5-8: Registration (retail merchant's certificate) · Indiana General Assembly
  5. 5. Indiana Code 34-28-5: Infraction and Ordinance Violation Enforcement Proceedings · Indiana General Assembly
  6. 6. 16 CFR Part 464 - Rule on Unfair or Deceptive Fees · Electronic Code of Federal Regulations
  7. 7. Chapter 852: Indianapolis Short-Term Rental Permit Program · Indianapolis - Marion County Code of Ordinances (Municode)
  8. 8. Unified Zoning Ordinance of Tippecanoe County (amended through Amendment 124, May 2026) · Tippecanoe County Area Plan Commission
  9. 9. House Enrolled Act 1035 (2018), Public Law 73-2018 · Indiana General Assembly
  10. 10. County Innkeeper's Tax · Indiana Department of Revenue
  11. 11. General Tax Information Bulletin #204: County Innkeeper's Taxes · Indiana Department of Revenue
  12. 12. Sales Tax Information Bulletin #41: Hotel, Motel and Other Lodging Rentals · Indiana Department of Revenue
  13. 13. Indiana tax types · Indiana Department of Revenue
  14. 14. Sales tax and Registered Retail Merchant Certificate · Indiana Department of Revenue
  15. 15. The Rule on Unfair or Deceptive Fees: Frequently Asked Questions · Federal Trade Commission
  16. 16. Landlord and Short-Term Rental Registries · City of Indianapolis
  17. 17. Planning Department FAQs (short-term rentals and Home Stays) · Brown County, Indiana
  18. 18. FAQs (transient rental ordinances and registration permit) · City of Lafayette, Indiana
  19. 19. Planning & Inspection · City of Michigan City
  20. 20. Landlord Registration · South Bend 311, City of South Bend
  21. 21. Occupancy tax collection and remittance by Airbnb in Indiana · Airbnb Help Center
  22. 22. Office of Mayor Duane Perry releases statement on short term rental ordinance (August 24, 2021) · WIMS Radio (reprint of City of Michigan City statement)
  23. 23. South Bend passes new short-term rental regulations (September 15, 2026) · WNDU