Hamilton County, IN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of gross lodging income
- Applies to
- daily/short-term room, lodging, cabin rentals
- Exempt
- dorms, month-to-month stays, primary residences
- Filing
- monthly, due 20 days after month-end
- Collected by
- Hamilton County Treasurer
- Fund use
- Convention, Visitor and Tourism Promotion Fund
Summary
Hamilton County charges a 5% County Innkeeper's Tax on every room, lodging, or tourist cabin rented on a daily basis anywhere in the county, on top of Indiana's state sales tax. The tax reaches short-term and vacation rentals; it exempts college dormitories, month-to-month tenancies, and a renter's own primary residence. Operators file monthly with the county treasurer.
(a)A tax is levied on every entity, person, corporation, or other business combination engaged in the business of renting or furnishing, for periods based upon a daily basis or multiples thereof, any room, lodging, or tourist cabin in the county.(b)The tax does not apply to gross income received in a transaction in which a person rents:(1)Lodgings in a college or university residence hall;(2)A room, lodging, or accommodations based upon a month-to-month tenancy or more; or(3)An apartment, or residence, which is the person's permanent, primary residence on a tenancy of less than a month-to-month basis.(c)The tax shall be levied at the rate of five percent on the gross retail income derived from lodging income only and is in addition to the state gross retail tax imposed under IC 6-2-5.(d)The tax shall be reported on forms approved by the county treasurer and shall be paid monthly to the county treasurer not more than 20 days after the end of the month in which the tax is reported.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 22 | Unified Development Ordinance: Republication).
Full Breakdown
Sec. " That language reaches nightly short-term rentals as well as hotels and motels; it does not reach college or university residence halls, rentals on a month-to-month tenancy or longer, or a renter's own permanent, primary residence rented on a less-than-monthly basis. The rate is five percent of gross retail income from lodging only, charged in addition to Indiana's state gross retail tax under IC 6-2-5. Operators report on forms the county treasurer approves and must remit the tax monthly, no later than 20 days after the end of the month it was collected.
The treasurer deposits every dollar into a Convention, Visitor and Tourism Promotion Fund, which under Sec. 6-9-18-5 is administered by the 15-member Hamilton County Convention, Visitor and Tourism Commission: the county commissioners appoint five members, the county council appoints two, and the mayors of Carmel, Fishers, Noblesville and Westfield each appoint two, with at least one appointee required to work in the hotel or motel business. Under Sec. 6-9-18-5, five percent of the fund covers advertising, trade shows, special events and recreation promotion, while three percent is set aside in a tourism capital fund the commission distributes for capital projects, two-thirds of it split evenly among Carmel, Fishers, Noblesville and Westfield.
Violations & Fines
The ordinance sets no flat dollar penalty for a missed or short filing; Sec. 6-9-18-3(d) instead makes the monthly return and remittance to the county treasurer a fixed compliance duty, with the treasurer's office responsible for collecting what is owed to the promotion fund. Because the county tax rides on the same transaction as Indiana's state gross retail tax under IC 6-2-5, an operator who under-collects risks separate enforcement from the Indiana Department of Revenue as well as the county treasurer.
Frequently Asked Questions
Does Hamilton County's innkeeper's tax apply to Airbnb and other short-term rentals?
What is the tax rate and how do operators pay it?
Where does the innkeeper's tax revenue go?
Sources & Official References
Other rules in Hamilton County
Compare Hamilton County to another location·View the Indiana hotels & lodging overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.