Short-Term Rental Tax in Minnesota (MN)
The state-level tax rate on short-term rentals in Minnesota is 6.9% , consisting of 6.9% sales tax and 0.0% lodging tax. Minnesota applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Minneapolis reaches 13.5%. STR operators must register with the state. Minnesota charges a 6.875% state sales tax on short-term lodging. No separate state lodging tax. Cities may impose a local lodging tax of up to 3%. Minneapolis and St. Paul have significant additional taxes.
Annual Tax Estimate for Minnesota
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Minneapolis).
| Nightly Rate | Gross Revenue | State Tax (6.9%) | Minneapolis Tax (13.5%) |
|---|---|---|---|
| $100.00/night | $23,700 | $1,629 | $3,200 |
| $150.00/night | $35,550 | $2,444 | $4,799 |
| $200.00/night | $47,400 | $3,259 | $6,399 |
| $300.00/night | $71,100 | $4,888 | $9,599 |
| $500.00/night | $118,500 | $8,147 | $15,998 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Minnesota
Local taxes significantly impact the total STR tax burden in Minnesota. The table below shows combined state + local rates for 3 cities, sorted by total rate. The highest combined rate is 13.5% in Minneapolis.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Minneapolis | 6.6% | 13.5% | $27.00 | High | Hennepin County 3% + Minneapolis 3.625% lodging tax. |
| St. Paul | 6.0% | 12.9% | $25.75 | High | Ramsey County 3% + St. Paul 3% lodging tax. |
| Duluth | 4.5% | 11.4% | $22.75 | Moderate | St. Louis County 1.5% + Duluth 3% lodging tax. |
How Minnesota Compares to Other States
Below is a comparison of Minnesota with five states that have similar state-level STR tax rates. This comparison helps illustrate where Minnesota stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Minnesota (MN) | 6.9% | 6.9% | 0.0% | Yes | Required |
| Nevada (NV) | 6.8% | 6.8% | 0.0% | Yes | Required |
| Indiana (IN) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Kentucky (KY) | 7.0% | 6.0% | 1.0% | Yes | Required |
| Mississippi (MS) | 7.0% | 7.0% | 0.0% | Yes | Required |
| Tennessee (TN) | 7.0% | 7.0% | 0.0% | Yes | Required |
Frequently Asked Questions About Minnesota STR Taxes
What is the short-term rental tax rate in Minnesota in 2026?
The state-level tax rate on short-term rentals in Minnesota is 6.9%, consisting of 6.9% sales tax and 0.0% lodging tax. Local taxes can bring the total to 13.5% in cities like Minneapolis. At $200/night with 65% occupancy, the state-level tax alone is approximately $3,259 per year.
Does Airbnb collect STR taxes in Minnesota?
Yes. Airbnb, Vrbo collect state sales tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Minnesota?
Yes. Minnesota requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Minnesota also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Minneapolis, Minnesota?
The total combined tax rate in Minneapolis is 13.5%, which includes the 6.9% state rate plus 6.6% in local taxes. Hennepin County 3% + Minneapolis 3.625% lodging tax. At $200/night with 65% occupancy, this amounts to approximately $6,399 per year in taxes.
How much will I owe in STR taxes in Minnesota?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (6.9%), a property earning $200/night with 65% occupancy would owe approximately $3,259/year in state taxes alone. In Minneapolis, the total tax at the same rate would be approximately $6,399/year. Use our STR tax calculator for a customized estimate.
Calculate Your Minnesota STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Minnesota. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.