Indiana Short-Term Rental Tax Collection Rules

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. Since 2017, IC 6-2.5-3-9 designated marketplace facilitators must collect and remit both taxes on hosts' behalf. Hosts renting outside platforms must register with the Indiana Department of Revenue, file ST-103 returns, and remit county innkeeper's tax to the county treasurer. Local governments cannot impose additional rental-specific transaction taxes beyond authorized innkeeper's tax.

Unpaid sales or innkeeper's taxes accrue 10% penalty plus interest. Department of Revenue may assess back taxes for up to three years; willful evasion is a Class D felony under IC 6-8.1-10.