Indiana Statewide Rule

Indiana Short-Term Rental Tax Collection Rules

Heavy RestrictionsApplies statewide across Indiana (2026)

Key Facts

State sales tax: 7%
County innkeeper: 5-10% varies
Threshold: Under 30 days
Platform collection: Required statewide
Penalty: 10% plus interest

Last verified: September 5, 2026Source: State of Indiana

Summary

Indiana imposes 7% state sales tax plus county innkeeper's tax on rentals under 30 days. Marketplace facilitators like Airbnb and Vrbo must collect and remit these taxes statewide under IC 6-2.5-2-1 and IC 6-9.

Sec. 1. (a) An excise tax, known as the state gross retail tax, is imposed on retail transactions made in Indiana. (b) The person who acquires property in a retail transaction is liable for the tax on the transaction and, except as otherwise provided in this chapter, shall pay the tax to the retail merchant as a separate added amount to the consideration in the transaction. A retail merchant that has either physical presence in Indiana as described in subsection (c) or that meets the threshold in subsection (d) shall collect the tax as agent for the state.

Source: State of IndianaView official code

Full Breakdown

Indiana's gross retail (sales) tax of 7% applies to short-term lodging under IC 6-2.5-4-4. Counties may impose innkeeper's taxes ranging from 5% to 10% under IC 6-9, used for tourism promotion. Effective July 1, 2019, marketplace facilitators such as Airbnb and Vrbo must collect and remit both taxes on hosts' behalf. Hosts renting outside platforms must register with the Indiana Department of Revenue, file returns, and remit county innkeeper's tax to the county treasurer. Local governments cannot impose rental-specific transaction taxes beyond the authorized innkeeper's tax.

Violations & Penalties

Unpaid sales or innkeeper's taxes accrue a 10% penalty plus interest. The Department of Revenue may assess back taxes, and willful tax evasion is a Level 6 felony under IC 6-8.1-10.

Frequently Asked Questions

Does Airbnb collect Indiana taxes for me?

Yes. Marketplace facilitators must collect and remit both 7% state sales tax and applicable county innkeeper's tax. Hosts renting only through such platforms generally have no remittance duty.

What if I rent directly without a platform?

You must register with the Indiana Department of Revenue, collect 7% sales tax plus county innkeeper's tax, and file returns. Failure to register may result in penalties and back tax assessment.

Sources

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