Minnesota Short-Term Rental Laws by City (2026)
Short-term rental rules in Minnesota are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 2 Minnesota cities (2 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in Minnesota
Minnesota is one of the few states with a true statewide permit: because state law defines any place furnishing sleeping accommodations for periods of less than one week as a 'hotel or motel,' vacation home rentals must hold an annual lodging license from the Minnesota Department of Health (or a delegated local public health agency) under Minn. Stat. ch. 157. There is no state preemption law, so cities, towns, and counties remain free to layer on their own STR licensing, zoning limits, caps, or outright bans. Rentals of less than 30 days are subject to the 6.875% state sales tax plus any local sales and lodging taxes (up to 3% under Minn. Stat. 469.190), and booking platforms ('accommodations intermediaries') must register and collect tax on the sales they facilitate.
Full statewide rules: permits, taxes & enforcement
Minnesota is one of the few states with a true statewide permit: because state law defines any place furnishing sleeping accommodations for periods of less than one week as a 'hotel or motel,' vacation home rentals must hold an annual lodging license from the Minnesota Department of Health (or a delegated local public health agency) under Minn. Stat. ch. 157. There is no state preemption law, so cities, towns, and counties remain free to layer on their own STR licensing, zoning limits, caps, or outright bans. Rentals of less than 30 days are subject to the 6.875% state sales tax plus any local sales and lodging taxes (up to 3% under Minn. Stat. 469.190), and booking platforms ('accommodations intermediaries') must register and collect tax on the sales they facilitate.
Reviewed by the STR Rule Watch research team against 10 official sources. How we verify data
Minnesota statewide STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Minnesota Department of Health lodging license (hotel/motel category) |
| Permit fee | $300 |
| Renewal | Annual |
| Total occupancy taxes | ~9.88% of gross revenue |
| Enforcement | Licensing and inspections are handled by the MDH Food, Pools and Lodging Services Section or, in many jurisdictions, by delegated local public health agencies; the establishment's location determines which agency licenses it. |
State law & local authority
No state zoning rules apply specifically to STRs, and no statute preempts local control: Minnesota Statutes 462.357 grants municipalities broad authority to regulate land uses by ordinance (counties have parallel authority under ch. 394), and section 462.357 never mentions short-term or vacation rentals. Localities therefore may — and many do — impose their own STR licensing, zoning districts, caps, or bans on top of the state health license.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| Minnesota state sales tax6.5% general rate plus a constitutionally required 0.375% (Minn. Stat. 297A.62), applied to lodging rented for less than 30 days. An accommodations intermediary (Airbnb, Vrbo, etc.) must register and collect on sales it facilitates; owners who regularly rent directly to guests must register and collect themselves (Revenue Notice 17-06). | 6.875% | varies |
| Local lodging taxMinn. Stat. 469.190 authorizes cities and towns to impose a lodging tax of up to 3% on gross receipts from lodging furnished for less than 30 continuous days (some cities have higher rates under special laws). Local general sales taxes may also apply. Whether a tax applies and who remits depends on the locality and booking channel. | 3% | varies |
Enforcement & penalties
Licensing and inspections are handled by the MDH Food, Pools and Lodging Services Section or, in many jurisdictions, by delegated local public health agencies; the establishment's location determines which agency licenses it. Separately, Minn. Stat. 299F.362 requires a smoke alarm meeting the State Fire Code in every dwelling unit and every hotel/lodging-house guest room, with the owner responsible for maintenance where the occupant is not the owner.
Operating without a lodging license triggers statutory penalty fees under Minn. Stat. 157.16: a $200 penalty is added to the license fee for establishments operating without a license for up to 30 days, and a $450 late fee for establishments operating more than 30 days without a license.
Statewide sources
- Minnesota Department of Health — Lodging in Minnesotaretrieved July 20, 2026
- Minn. Stat. 157.15 — Definitions (hotel or motel; lodging establishment)retrieved July 20, 2026
- Minn. Stat. 157.16 — Licenses required; feesretrieved July 20, 2026
- Minnesota Department of Revenue — Sales: Residential Short-Term Rentalsretrieved July 20, 2026
- Minnesota Department of Revenue — Revenue Notice 17-06: Lodging and Related Services – Residential Short-Term Rentalsretrieved July 20, 2026
- Minn. Stat. 297A.62 — Sales tax rates imposedretrieved July 20, 2026
- Minn. Stat. 469.190 — Local lodging taxretrieved July 20, 2026
- Minn. Stat. 462.357 — Municipal zoning authorityretrieved July 20, 2026
- Minn. Stat. 299F.362 — Smoke alarm; installation; maintenanceretrieved July 21, 2026
- HF 3972 status — 94th Legislature (2025-2026): short-term rental guarantees and reimbursement insuranceretrieved July 20, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Minneapolis | Restricted | $64 | July 21, 2026 |
| St. Paul | Permit required | $45 | July 21, 2026 |
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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.