Indianapolis, IN Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 10 percent
- Prior rate (pre-2009)
- 9 percent
- Scope
- Marion County-wide
- Governing statute
- IC 6-9-8
- Revenue use
- Capital Improvement Board debt
Summary
Indianapolis hotels, motels and other lodging operators across Marion County collect a 10 percent county innkeeper's tax on room charges, set by City-County Council ordinance under state law.
The county innkeeper's tax imposed by section 2 of IC 6-9-8 (as amended by H.E.A. 1001 of the 2009 Special Session of the Indiana General Assembly) is hereby increased from nine (9) percent to ten (10) percent. The increase in the tax rate authorized by this section continues in effect unless the increase is rescinded.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 47 Update 2).
Full Breakdown
Marion County's innkeeper's tax, authorized by IC 6-9-8, was raised from 9 percent to 10 percent by City-County Council ordinance and stays in effect unless the council rescinds it. Because this is a 'county' tax (Chapter 121, alongside the county admissions tax and auto rental excise tax), it reaches lodging countywide, not just the Consolidated City. Revenue backs Capital Improvement Board debt on the Convention Center and downtown sports venues.
Violations & Fines
Operators that fail to collect or remit the tax face the same enforcement, penalties and audit procedures the state applies to delinquent sales tax accounts.
Frequently Asked Questions
Does the tax apply outside the Consolidated City?
When did the rate reach 10 percent?
Sources & Official References
Other rules in Indianapolis
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