Carmel STR stays under 30 days carry Indiana's 7% state sales tax plus Hamilton County's 8% innkeeper's tax (effective January 1, 2024), totaling about 15%. Any local short-term rental permit fee is capped by Indiana Code 36-1-24-13 at $150. Airbnb and Vrbo often collect these taxes automatically.
Short-term lodging in Carmel is taxed at two levels. Indiana imposes its 7% state gross retail (sales) tax on rentals of accommodations for fewer than 30 days, and the tax base includes cleaning fees, pet fees, and other mandatory charges bundled into the room rate. On top of that, Hamilton County levies an 8% innkeeper's (lodging) tax, which increased from 5% to 8% effective January 1, 2024 under Indiana Code 6-9, and also applies to rentals of 30 days or less. Combined, a Carmel guest typically pays roughly 15% in lodging taxes. Hosts generally must register with the Indiana Department of Revenue to collect and remit these taxes, though platforms such as Airbnb and Vrbo frequently collect and remit them on the host's behalf; hosts should confirm coverage for their specific listing. On the fee side, Indiana Code 36-1-24-13 caps any short-term rental permit fee a unit of local government charges at $150. Carmel's separate long-term rental registration program (Ordinance D-2770-25) lists a small annual registration fee and late penalties, but that program does not apply to short-term rentals. Because the 2026 state law (HEA 1210) reshaped what Carmel may charge for STRs, hosts should verify any current city fee directly with the city.
Failing to collect or remit state sales tax or the county innkeeper's tax can result in Indiana Department of Revenue assessments, penalties, and interest. Permit-fee disputes are limited by the $150 statutory cap in IC 36-1-24-13.
Other ordinances people look up for this city. Green dot = verified primary-source excerpt.
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Carmel has no fetched ordinance prohibiting backyard composting; property must simply be kept free of debris and rank vegetation under § 6-88. The City's Rep...
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No fetched Carmel ordinance specifically bans or permits residential artificial turf in single-family yards. Synthetic turf is commercially installed in Carm...
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Carmel does not require native landscaping, and its weed ordinance (§ 6-88) specifically exempts common and swamp milkweed so pollinator plantings are allowe...
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Rainwater harvesting is legal in Carmel and across Indiana, and residential rain barrels for lawn and garden use generally need no permit. Carmel actively en...
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Carmel has no permanent year-round lawn-watering schedule. Carmel Utilities, the city water provider, issues voluntary outdoor-watering limits during system ...
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Carmel City Code § 6-88 (Removal of Weeds, Debris, and Other Such Rank Vegetation) requires owners to remove weeds and rank vegetation over six inches averag...
Side-by-side rule comparisons with other cities in Hamilton County.
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