What is the Indiana state lodging tax rate?

7% statewide. Indiana applies 7% state sales tax to lodging and authorizes counties to adopt a county innkeeper's tax up to 10%. Marion County (Indianapolis) sits at 10% — combined with state, that's a 17% effective rate during convention season. The 2018 Indiana STR law (HEA 1035) preempts most local STR bans but allows zoning regulation; cities can still require permits. Both Airbnb and Vrbo collect the state and most county innkeeper's taxes after recent agreements, but smaller counties may not be on the marketplace facilitator list.

Do Airbnb and Vrbo collect Indiana lodging tax for me?

Airbnb and Vrbo collect and remit lodging tax in most cases. Local taxes may still be your responsibility — verify with the state DOR.

What's the local add-on range in Indiana?

Cities and counties may add 0% to 10% on top of the state rate.

Where can I see the official source?

The authoritative source is the Indiana Department of Revenue at https://www.in.gov/dor/. Always verify before filing.

When was this last verified?

Last verified 2026-05-05. Lodging-tax rates are reviewed annually; entries older than 12 months are flagged for re-verification.

Indiana Lodging Tax Calculator

How Indiana lodging tax works

Indiana stacks two layers on every short-term stay: a 7% state sales tax and a county innkeeper’s tax of up to 10%. Every Indiana county has the option to levy an innkeeper’s tax, and most major STR markets do. Combined effective rates run 12% to 17% depending on county. Top STR markets:

Indianapolis (Marion County) — 7% state + 10% Marion County innkeeper’s = 17% effective. One of the highest STR tax rates in the Midwest, driven by Lucas Oil Stadium / Indiana Convention Center traffic.
Bloomington (Monroe County) — 7% state + 5% innkeeper’s = 12%. IU football and basketball game-day market.
Brown County (Nashville, IN) — 7% state + 5% innkeeper’s = 12%. Major fall-foliage cabin market.
Lake County (Gary/Hammond) — 7% state + 10% innkeeper’s = 17%.
Hamilton County (Carmel, Fishers, Noblesville) — 7% state + 8% innkeeper’s = 15%.

Stays of 30 consecutive nights or longer are exempt from both the state sales tax and the county innkeeper’s tax.

Platform collection

Airbnb and Vrbo both collect and remit the 7% state sales tax AND county innkeeper’s tax in Indiana under marketplace facilitator rules. Indiana’s marketplace law (HEA 1129) explicitly requires platforms to collect the full county innkeeper’s tax on bookings — making Indiana one of the cleaner states for STR tax compliance.

For nearly all platform-booked stays, no host filings are required.

What this means in practice

Airbnb / Vrbo hosts — both state and county tax are handled. No filings.
Direct-booking hosts — register with the Indiana Department of Revenue (DOR) for sales tax and with your county treasurer for innkeeper’s tax. File monthly.
Indianapolis hosts — the 17% rate is fully covered by the platform, but Marion County has a separate STR registration requirement; failure to register can result in fines.
Brown County cabin hosts — verify your address falls inside the Nashville town limits vs unincorporated; rates can differ at the township edge.
30+ night stays — exempt from both layers.

How to use the calculator above

Enter your booking subtotal (nightly × nights + cleaning fee, before tax).
Enter the local add-on rate. Marion County (Indianapolis) is 10%; Monroe County (Bloomington) is 5%; Brown County is 5%; Hamilton County is 8%.
The result shows the effective rate, total tax, and what the guest sees.

Source: Indiana Department of Revenue. Verified 2026-05-11. Not tax advice — confirm with a CPA before filing.