Indianapolis hotels collect a 10% Marion County Innkeeper's Tax under IC 6-9-8 plus 6% Indiana sales tax for a 16% effective rate. Revenue funds the Capital Improvement Board, which operates Lucas Oil Stadium, Gainbridge Fieldhouse, and the Indiana Convention Center.
Marion County imposes a 10% innkeeper's tax under IC 6-9-8 — among the highest county lodging rates in the United States. Combined with the 6% Indiana state sales tax, hotel guests pay 16% on the room rate. The innkeeper's tax flows to the Marion County Capital Improvement Board (CIB), which uses the revenue to fund the Indiana Convention Center, Lucas Oil Stadium, Gainbridge Fieldhouse, and Victory Field debt service. Sports tourism — Indy 500, Big Ten Championship, NFL Combine, NCAA Final Four — generates substantial collections. Hotels register with the Indiana Department of Revenue and remit monthly. Short-term rentals booked over 30 days are exempt.
Hotel operators failing to register, collect, or remit the 10% county innkeeper's tax plus 6% state sales tax. Indiana DOR penalties include interest, late-filing fees, and tax-warrant collection.
See how Indianapolis's transient occupancy tax rules stack up against other locations.
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