Indiana, a Midwestern state in the United States, offers a diverse range of short-term rental options that cater to a variety of visitors. Known for its rich history, bustling cities like Indianapolis, and scenic natural landscapes like the shores of Lake Michigan, Indiana provides an ideal backdrop for both urban and rural getaways. The state's short-term rental market has grown significantly, offering accommodations ranging from cozy downtown apartments to serene lakeside cabins.

In Indiana, the definition of a "short term rental" according to state law includes the rental of various types of dwelling units, such as single-family homes, units in multi-family dwellings, and condominiums, for periods of less than thirty days. This definition also encompasses detached accessory structures used for residential purposes. However, properties used for non-residential purposes do not fall under this definition. For more detailed information, you can refer to the Indiana Code Section 36-1-24-6.

The regulations for short-term rentals, including the length of stay, primarily depend on local ordinances rather than statewide standards. Generally, many cities in Indiana define short-term rentals as accommodations provided for periods less than 30 consecutive days.

In Indiana, owners of short-term rentals are required to adhere to certain tax obligations. These include the state sales tax and, depending on the location, a county innkeeper's tax. The state sales tax is collected by the Indiana Department of Revenue, while the county innkeeper's tax may be collected either by the state or the local county tax authority.

If a third-party platform (like Airbnb or VRBO) is already collecting and remitting these taxes for all your rental transactions, you would not be liable for them. Also, if you rent out your primary residence for fewer than 15 days in a year and the rentals are not made through a marketplace facilitator, you are exempt from lodging taxes.

The specific tax rates and rules can vary depending on the location of your rental, as tax jurisdictions are determined by the rental's address. Therefore, it is crucial to stay updated with the latest tax rates and ensure compliance to avoid penalties. In addition to state requirements, you should also be aware of any local government laws that may apply, including those related to zoning, building and housing standards, rental permits, and other taxes like property and gross income taxes.