Airbnb Rules Indiana

Last Updated: May 2026

Indiana Airbnb Compliance Checklist

• ☐ Confirm Local Registration Requirements

  • Check whether the host's municipality has enacted a local STR ordinance; Indianapolis, Bloomington, Fort Wayne, and South Bend each have separate registration processes.

  • Submit a registration application to the applicable city or county office before accepting the first booking.

• ☐ Verify Zoning Eligibility

  • Confirm the property sits in a zoning district that permits short-term rentals under the local unified development ordinance.

  • Review any HOA covenants or deed restrictions that may independently prohibit STR activity.

• ☐ Obtain a Business License Where Required

  • Some Indiana municipalities require a standard business license in addition to an STR-specific permit; verify both requirements with the local clerk's office.

• ☐ Register for Indiana Sales Tax

  • Register with the Indiana Department of Revenue to collect the 7% state sales tax on all rental receipts unless the platform remits on the host's behalf.

• ☐ Confirm Innkeeper's Tax Obligations

  • Identify the applicable county innkeeper's tax rate; rates vary by county and range from 1% to 10%, and register with the county treasurer if the platform does not collect it automatically.

• ☐ Install Required Safety Equipment

  • Install operational smoke detectors in every sleeping room and hallway per Indiana Fire Code requirements.

  • Install a carbon monoxide detector on each floor with a sleeping area, as required by Indiana Code 22-11-21.

  • Provide a fire extinguisher accessible to guests on each level of the property.

• ☐ Post Emergency Contact Information

  • Display the host's emergency contact number and local emergency services information (911) in a visible location inside the unit, as required by applicable local ordinances.

• ☐ Set Occupancy Limits Per Local Rules

  • Cap guest occupancy at the number specified in the local permit or, where no permit exists, at no more than two guests per bedroom plus two additional guests per property.

• ☐ Display Registration Number on All Listings

  • Where a municipality issues an STR registration or permit number, include it on every active Airbnb, Vrbo, and Booking.com listing; omission can result in platform removal and local fines.

1. Regulatory Overview

Short-term rental operators in Indiana face compliance requirements at three levels: state law, municipal ordinance, and, where applicable, county zoning code.

There is no single statewide licensing mandate for short-term rentals, but state tax law, local permitting frameworks, and platform-reporting obligations all apply simultaneously. Hosts cannot satisfy one layer and ignore the others.

At the state level, Indiana Code Title 6, Article 9 governs the collection and remittance of innkeeper's taxes, which apply to short-term rental revenue.

Indiana Code § 36-1-24, effective July 1, 2018, restricts local governments from prohibiting short-term rentals outright in owner-occupied properties, though it does not prevent cities from imposing registration requirements, safety standards, or occupancy limits.

Indiana does not define "short-term rental" in a single statewide statute. Most municipalities that have adopted local ordinances define a residential dwelling as any dwelling rented for periods of fewer than 30 consecutive days, distinguishing it from month-to-month tenancies governed by landlord-tenant law under Indiana Code Title 32.

Enforcement authority is fragmented. The Indiana Department of Revenue (IDOR) administers state and county innkeeper's tax compliance.

Local code enforcement offices, zoning boards, and, in larger cities such as Indianapolis, the Department of Business and Neighborhood Services (BNS), handle permitting and operational violations at the municipal level.

2. Registration Requirements

Indiana has no statewide short-term rental registration system. There is no state-level registry that hosts must file with before operating, and no state agency issues STR licenses.

Compliance obligations fall entirely at the municipal and county level, meaning requirements vary significantly depending on where the property sits.

Municipal Registration Regimes

Several Indiana cities have enacted local registration requirements. The frameworks below represent the most operationally significant ones hosts encounter.

Indianapolis (Marion County)

• Effective Date: Indianapolis has required STR registration under its consolidated city-county ordinance since January 1, 2023.

• Who Must Register: All operators renting a dwelling unit for fewer than 30 consecutive days within Marion County, regardless of the platform used.

• If you're listing on Airbnb, Vrbo, or Booking.com, this ordinance applies to you. It's not optional. The platforms are required to display your local registration number right in your property description, so there's no hiding it after you get your permit.

• Application Requirements:

  • Property Address Verification: Hosts must submit proof of ownership or a valid lease permitting subletting.

  • Zoning Confirmation: The property must be located in a zone permitting short-term rental use, confirmed by the Department of Metropolitan Development.

  • Insurance Documentation: Proof of liability coverage meeting the city's minimum threshold is required at registration.

• Registration Fee: $150 per unit annually.

• Primary-Residence Threshold: Indianapolis does not impose a primary-residence cap on operating days.

Bloomington and Fort Wayne

Bloomington and Fort Wayne have completely independent registration programs with their own fee structures. Bloomington's STR permit will set you back $100 annually and requires you to designate a local contact who can respond to emergencies within 60 minutes.

Fort Wayne, on the other hand, doesn't use a dedicated STR registration; instead, you'll need a $75 home occupation permit. It's a whole different process. As of May 21, 2026, neither city has enacted a platform-level enforcement mechanism.

Hosts operating outside these jurisdictions should contact the relevant city or county planning department directly. Absence of a local ordinance does not exempt a property from zoning restrictions or business licensing requirements that may apply under general municipal codes.

3. Property and Building Eligibility

Indiana does not maintain a statewide prohibited buildings list or formal property classification system for short-term rentals. No state statute assigns buildings to categories analogous to Class A or Class B multiple dwellings.

Eligibility is governed at the local level, through municipal zoning ordinances, HOA bylaws, and condominium association rules, each of which can restrict or prohibit STR activity independently of state law.

Zoning and Land Use Controls

Municipal zoning codes are the primary filter. Cities including Indianapolis, Fort Wayne, and Bloomington each define which residential zones permit STR use, and several require that the property qualify as the operator's primary residence before a permit is issued.

Operating in a zone that excludes STRs constitutes a zoning violation regardless of platform registration status.

• Residential Zones: Permitted use varies by district designation; hosts must confirm STR use is an allowed or conditional use in their specific zoning classification.

• Commercial or Mixed-Use Zones: Some municipalities permit non-owner-occupied STRs only in commercial or mixed-use districts.

• HOA and Condo Restrictions: Private governing documents can prohibit STRs entirely; these restrictions are enforceable independently of any municipal permit issued.

No Statewide Prohibited Buildings Registry

Indiana hosts do not check the state registry to confirm building eligibility. The absence of a state-level classification system means local ordinances and private covenants carry full authority.

A property that clears municipal zoning can still be ineligible if its HOA declaration or condominium master deed prohibits rentals under 30 days.

4. Operational Requirements and Restrictions

Host Presence

At the state level, Indiana doesn't impose any host-presence requirements for short-term rentals. A host isn't required to be at the property while guests are there.

But don't get comfortable. Individual cities can and do impose their own presence rules, such as only allowing STRs in a primary residence, so you absolutely must verify local city- and county-level ordinances before listing.

Guest Limits

No statewide statute sets a maximum occupancy figure for short-term rentals. Occupancy limits are governed by two overlapping sources:

• Local zoning ordinances: Cities including Indianapolis, Carmel, and Bloomington set per-property occupancy caps in their STR permit conditions, typically two persons per bedroom plus two additional occupants.

• International Property Maintenance Code (IPMC): Indiana municipalities that adopt the IPMC apply its minimum habitable space standards, which effectively cap density at roughly one occupant per 70 square feet of sleeping area.

Hosts must document the applicable limit on the listing and enforce it at check-in. Exceeding a permit-specified cap is a direct violation of the operating permit, not merely a platform infraction.

Minimum-Stay Thresholds

Indiana has no statewide minimum-stay floor. Some jurisdictions apply minimum-night rules through local ordinance.

Fort Wayne's STR framework, for example, does not mandate a minimum stay, while certain residential zoning overlays in Bloomington restrict rentals shorter than two consecutive nights in owner-occupied zones. Hosts should confirm the applicable zoning district rules before setting nightly availability.

Access Requirements

Several municipalities require that a local contact person, reachable by phone within 30 minutes, be designated on the permit application. Indianapolis requires this under its short-term rental registration process.

The contact need not be present on-site but must be able to respond to complaints or emergencies during any active guest stay.

5. Tax Obligations

State Taxes

Indiana imposes two state-level taxes on short-term revenue. Both apply to gross rental receipts before any platform fees are deducted.

County Taxes

Marion County (Indianapolis) imposes a 10% innkeeper's tax under Indiana Code § 6-9-8. Hamilton County charges 5%. Monroe County (Bloomington) applies 5%.

Hosts operating across multiple counties must verify each county's current rate with the Indiana Department of Revenue or the relevant county auditor, as rates are set locally and are not uniform statewide.

Total Combined Tax Rate (Marion County example): 17% (7% state sales tax + 10% Marion County innkeeper's tax).

Platform Collection Requirements

Airbnb collects and remits Indiana state sales tax and innkeeper's tax on behalf of hosts for bookings processed through its platform, under agreements with the Indiana Department of Revenue effective January 1, 2018.

Vrbo began a similar collection in Indiana in 2019. Hosts using these platforms are not required to remit taxes already collected by the platform, but must confirm collection is active on their account dashboard before assuming remittance is handled.

Tax Filing Requirements

Hosts receiving income outside platform-collected arrangements, including direct bookings or payments processed off-platform, must register with the Indiana Department of Revenue and file Form ST-103 (Sales Tax Return) monthly or quarterly, depending on volume.

Innkeeper's tax filings go to the relevant county treasurer. Failure to register carries penalties up to $10,000 under

6. Safety and Building Code Requirements

Mandatory Safety Equipment

• Smoke Detectors: Operational smoke detectors required in every sleeping room, outside each sleeping area, and on every level of the dwelling, per the Indiana Fire Prevention Code (675 IAC 22-2).

• Carbon Monoxide Detectors: Required in any unit containing a fuel-burning appliance or attached garage, under Indiana Code 22-11-18-3.5, effective July 1, 2010.

• Fire Extinguisher: Minimum one 2A:10B: C-rated extinguisher on each floor, accessible to guests at all times.

• Emergency Egress: Every sleeping room must have at least one operable window or door providing direct exterior access, per 675 IAC 14-4 (Indiana Residential Code).

Building Compliance

• Electrical Systems: No exposed wiring, non-functioning outlets, or overloaded panels. Inspections fall under local building departments.

• Structural Integrity: Stairways, balconies, and decks must meet load-bearing standards set by the Indiana Building Code (675 IAC 13).

• Occupancy Limits: Maximum occupancy must not exceed local zoning and building code thresholds. (Some municipalities impose stricter caps than state minimums.)

Indiana has not enacted any statewide law requiring booking platforms to verify host registrations before accepting transactions, block unregistered listings, or submit periodic transaction reports to a state agency.

No Indiana statute imposes compliance obligations directly on Airbnb, Vrbo, or Booking.com equivalent to New York City's Local Law 18 of 2022 or San Francisco's platform reporting mandates.

A small number of Indiana municipalities collect occupancy taxes through voluntary platform agreements rather than statutory mandates.

Indianapolis, for example, operates under a collection agreement with major platforms, but that arrangement does not carry verification or blocking requirements enforceable by law.

Hosts in those cities cannot rely on a platform to flag a missing registration or withhold a payout as a compliance signal. The absence of platform mandates places the full compliance burden on the host.

Platforms will not catch a missing local permit or an unpaid innkeeper's tax on the host's behalf. Indiana does not have a statewide law prohibiting the advertisement of short-term rentals before a booking transaction occurs.

No statute restricts STR-specific advertising across online listing platforms, print, or social media channels in a way that would trigger pre-transaction liability.

General consumer protection rules under the Indiana Deceptive Consumer Sales Act (Ind. Code § 24-5-0.5) apply to all commercial advertising equally and are not STR-specific restrictions.

Advertising compliance in Indiana is governed by whatever local registration or permit requirements a municipality has enacted, meaning a host advertising an unlicensed unit in a city that requires registration may face permit violations, but those penalties attach to the underlying non-compliance, not to the act of advertising itself.

7. Enforcement and Penalties

Indiana does not operate a single statewide STR enforcement agency. Enforcement authority rests with individual municipalities, and penalty structures vary by ordinance.

The figures below reflect common ranges found across Indiana's regulated cities and counties; hosts must verify exact amounts in their specific jurisdiction's code.

Civil Penalties

• Operating without registration: Fines typically range from $250 to $2,500 per violation per day, depending on municipal ordinance.

• Exceeding occupancy limits: Penalties of $100 to $500 per incident are common in cities with adopted STR ordinances.

• Failure to collect or remit lodging tax: Indiana Code § 6-9 authorizes penalties of 10% of the unpaid tax plus interest at 1% per month on outstanding balances.

• Noise, nuisance, or safety violations: Municipal code enforcement can issue fines of $50 to $1,000 per occurrence, with repeat violations escalating to license suspension.

Enforcement Mechanisms

• Complaint-driven response: Most Indiana municipalities rely on neighbor complaints routed through local code enforcement offices as the primary detection method.

• Platform data requests: Some counties have begun requesting listing data from booking platforms to cross-reference against registered properties.

• Proactive monitoring: A small number of larger cities, including Indianapolis, use third-party scraping tools to identify unregistered active listings.

• Routine inspections: Fire marshal inspections may be triggered upon registration or following a complaint, particularly in Indianapolis, under the City of Indianapolis code.

Registration Denial and Revocation

• Grounds for denial: Outstanding code violations, unpaid taxes, or a property failing minimum safety inspections.

• Grounds for revocation: Three or more substantiated nuisance complaints within 12 months, failure to maintain required insurance, or operating outside permitted zoning.

• Appeal body: Appeals are heard by the local Board of Zoning Appeals (BZA) in most Indiana municipalities.

8. Special Considerations

Accessory Dwelling Units (ADUs)

Indiana does not have a statewide framework governing ADU use as short-term rentals. Whether a detached garage apartment, basement unit, or carriage house qualifies for STR operation depends entirely on the host municipality's zoning ordinance.

Indianapolis, for example, requires ADUs to comply with the same permit and owner-occupancy conditions that apply to primary residences under the Indianapolis-Marion County Consolidated Code, Chapter 731.

Operating an ADU as a short-term rental without confirming its classification under the applicable zoning district risks the same fines that apply to unlicensed STR activity.

• Zoning Overlay Conflicts: Some municipalities zone ADUs as residential-only, which prohibits any commercial lodging use regardless of duration.

• Utility Separation Requirements: Several Indiana cities require ADUs to have independent utility metering before they qualify for any separate occupancy permit.

• Owner-Occupancy Triggers: Where a primary residence STR permit requires owner-occupancy, that condition typically extends to ADUs on the same parcel.

Homeowners Association (HOA) Governed Properties

Indiana HOAs operate under the Indiana Code Title 32, which gives associations broad authority to restrict or prohibit short-term rentals through recorded covenants. A municipal STR permit does not override an HOA prohibition.

Hosts operating in violation of recorded covenants face civil action from the association, injunctive relief, and fines set by the HOA's governing documents, which are uncapped under state law. Boards can also place liens on the property for unpaid fines.

Hosts must review the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) before listing, not after receiving a cease-and-desist letter.

9. Exemptions

Not every short-term occupancy arrangement in Indiana falls under local STR registration or licensing requirements; several categories operate under separate regulatory regimes or are excluded by statute.

• Stays of 30 consecutive days or more: These are considered standard residential tenancies under Indiana Code § 32-31 and are governed by landlord-tenant law, not short-term rental ordinances.

• Licensed hotels and motels: Properties operating under an Indiana hotel/motel license issued by the Indiana Department of Homeland Security are subject to separate commercial lodging rules, not municipal STR frameworks.

• Bed-and-breakfast establishments: B&Bs holding a valid state innkeeper's license operate under distinct health and safety inspection requirements and are generally exempt from STR-specific registration mandates.

• Student housing and dormitories: University-affiliated housing arrangements fall outside the short-term rental ordinance scope entirely.

10. Legislative Developments

Indiana has not enacted a statewide short-term rental registration or licensing statute as of May 2026. The most recent enacted change at the state level was House Enrolled Act 1350 (2023), effective July 1, 2023, which clarified that municipalities may regulate STR activity through zoning ordinances but may not impose outright bans on owner-occupied short-term rentals in residentially zoned areas.

No STR-specific bills are currently pending in the Indiana General Assembly as of the May 2026 session. Legislative activity in this area has shifted almost entirely to individual municipalities.

Indianapolis, Carmel, and Bloomington have each introduced or amended local STR ordinances since 2023, but no uniform statewide framework is under active consideration.

Hosts should monitor the Indiana General Assembly bill tracker and their municipality's city council agenda for local amendments, as local ordinance changes can take effect with as little as 30 days' notice.

11. Resources and Contact Information

Government Agencies

Indiana does not operate a single statewide STR registration agency. Compliance responsibilities are distributed across state and local bodies depending on the specific requirement.

Indiana Department of Revenue (IDOR)

• Address: 100 N. Senate Avenue, Indianapolis, IN 46204

• Phone: (317) 232-2240

• Website: in.

Indiana Department of Homeland Security (IDHS), Fire and Building Safety

• Address: 302 W. Washington Street, Room E208, Indianapolis, IN 46204

• Phone: (317) 232-2222

• Website: in.

For municipal registration requirements, hosts must contact the relevant city or county planning and zoning office directly. Indianapolis, Fort Wayne, and Bloomington each maintain separate portals and contact lines.

Filing Complaints

All complaints about unlicensed or non-compliant STR operations are handled at the local level. Don't call the state. Whether you're a host reporting a competitor or a neighbor fed up with a party house that has 15 cars parked on the lawn, you report suspected violations to the city's code enforcement division.

For Indianapolis residents, that's the Department of Business and Neighborhood Services at (317) 327-5183, while Bloomington's code enforcement is reachable at (812) 349-3420.

Disclaimer

This information is for general guidance, so don't treat it as legal advice. It's a starting point. Short-term rental regulations in Indiana are notoriously complex and can be completely overhauled after a single city council vote next Tuesday.

Bottom line: hosts absolutely should consult with qualified legal counsel and tax professionals to ensure they're in full compliance. The enforcement landscape keeps changing, and it's your responsibility to stay informed.