Short-Term Rental Laws in Minneapolis, MN (2026)
Minneapolis allows short-term rentals but requires a short-term rental license (a lower-cost registration for homestead properties, currently $64/year) for any rental of 30 days or less, unless you rent a spare room while remaining in your home. Owners are capped at one STR property besides their own home, occupancy is capped at 10 guests, and in buildings of 20+ units only 10% of units may be STRs (condos exempt). Stays are taxed at roughly 12.025% (state and local sales taxes plus a 3% citywide Minneapolis entertainment tax); platforms like Airbnb collect these as accommodations intermediaries on platform bookings.
Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data
Minneapolis STR rules at a glance
| Legal status | Restricted |
|---|---|
| Permit required | Yes |
| Permit name | Short-term rental license (homestead properties file a short-term rental registration) |
| Permit fee | $64 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Max units per owner | 2 |
| Total occupancy taxes | ~15.03% of gross revenue |
| Insurance | The short-term rental application requires the host to provide their insurer name and insurance policy number for the rental unit. The city does not publish a required coverage amount on its STR pages. |
| Enforcement | Administered by Regulatory Services / Inspections Services; complaints are routed through 311. Applicants must submit a management plan, a neighbor notification letter (to all owners/renters within the building or within 50 feet of the property line), and a pre-inspection checklist, and must post the license certificate, a 311 poster, and an emergency floor plan in the unit. The license ID must appear on all platform listings. Violations of the management plan can trigger adverse actions against the license, administrative citations, and other fines. |
What will guests pay in taxes on a Minneapolis stay?
Itemized occupancy taxes for Minneapolis, MN — enter your nightly rate to see the real cost breakdown.
Minneapolis occupancy tax calculator
| Gross rent | $450.00 |
| Minnesota state general sales tax (6.875%)· collection varies | $30.94 |
| Minneapolis Sales Tax (0.5%)· collection varies | $2.25 |
| Hennepin County Sales Tax (0.15%)· collection varies | $0.68 |
| Hennepin County Transit Sales Tax (0.5%)· collection varies | $2.25 |
| Metro Area Sales Tax for Housing (0.25%)· collection varies | $1.13 |
| Metro Area Transportation Sales Tax (0.75%)· collection varies | $3.38 |
| Minneapolis Entertainment Tax (3%)· collection varies | $13.50 |
| Minneapolis Lodging Tax (3%)· collection varies | $13.50 |
| Total tax (15.03%) | $67.61 |
| Guest pays | $517.61 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Minneapolis requires Short-term rental license (homestead properties file a short-term rental registration) to operate a short-term rental — the fee is $64, renewed annual.
The City's 2026 license fee schedule lists 'Short-Term Rental Registration Hosts' at $64, the standard fee for a homestead-property host. Non-homestead STR properties instead pay the tier-based rental dwelling license fees (e.g., Tier 1 for a 1-3 unit building: $98 building fee + $41/unit, per the rental license fee page), and one-time inspection fees can apply ($1,000 conversion fee for a first-time rental, $450 change-of-ownership fee). Hosting platforms (Airbnb/Vrbo) pay a separate Short-Term Rental Hosting Platform license of $1,071 to $26,775 depending on active listing count.
Zoning & location rules
Minneapolis regulates STRs citywide through rental licensing rather than zoning districts; no STR-specific zoning district or overlay restrictions were identified. Any dwelling (homestead or non-homestead) can be licensed, but in buildings with 20 or more units only 10 percent of units can be short-term rentals (condo buildings are exempt from the 10% cap).
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Minnesota state general sales taxApplies to short-term lodging (rentals under 30 days). Accommodations intermediaries (Airbnb/Vrbo) must collect and remit on platform bookings; hosts must register and collect on direct bookings. | 6.875% | varies |
| Minneapolis Sales TaxLocal sales tax applying to lodging; platform collects on platform bookings, host on direct bookings. | 0.5% | varies |
| Hennepin County Sales Tax | 0.15% | varies |
| Hennepin County Transit Sales Tax | 0.5% | varies |
| Metro Area Sales Tax for Housing | 0.25% | varies |
| Metro Area Transportation Sales Tax | 0.75% | varies |
| Minneapolis Entertainment TaxApplies citywide to all short-term lodging accommodations, including residential STRs. Total tax on a typical STR stay (50 rooms or less) is 12.025% per MN DOR Fact Sheet 164M. | 3% | varies |
| Minneapolis Lodging TaxOnly applies to lodging establishments with more than 50 rooms, so it generally does NOT apply to typical short-term rentals. Combined Minneapolis city taxes on lodging are capped at 6.5%. | 3% | varies |
Enforcement & penalties
Administered by Regulatory Services / Inspections Services; complaints are routed through 311. Applicants must submit a management plan, a neighbor notification letter (to all owners/renters within the building or within 50 feet of the property line), and a pre-inspection checklist, and must post the license certificate, a 311 poster, and an emergency floor plan in the unit. The license ID must appear on all platform listings. Violations of the management plan can trigger adverse actions against the license, administrative citations, and other fines.
The city warns that failure to comply is 'adequate grounds for the denial, refusal to renew, revocation, or suspension' of the license, and management-plan violations 'may result in enforcement actions, including adverse actions against the short-term rental license, administrative citations, and other fines.' Rental license renewals received after March 15 incur a 25% late fee; buying a rental property without applying for a license within 60 days triggers a $250 administrative fee (plus $20 per additional unit). Specific administrative-citation dollar amounts for STR violations are not published on the city's STR pages.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Minneapolis: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Verify your zoning
Location rules apply: Minneapolis regulates STRs citywide through rental licensing rather than zoning districts; no STR-specific zoning district or overlay restrictions were identified. Any dwelling (homestead or non-homestead) can be licensed, but in buildings with 20 or more units only 10 percent of units can be short-term rentals (condo buildings are exempt from the 10% cap). Confirm your parcel's zoning with the city before applying.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the Short-term rental license (homestead properties file a short-term rental registration)
Budget $64 (annual renewal). The City's 2026 license fee schedule lists 'Short-Term Rental Registration Hosts' at $64, the standard fee for a homestead-property host. Non-homestead STR properties instead pay the tier-based rental dwelling license fees (e.g., Tier 1 for a 1-3 unit building: $98 building fee + $41/unit, per the rental license fee page), and one-time inspection fees can apply ($1,000 conversion fee for a first-time rental, $450 change-of-ownership fee). Hosting platforms (Airbnb/Vrbo) pay a separate Short-Term Rental Hosting Platform license of $1,071 to $26,775 depending on active listing count. Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
The short-term rental application requires the host to provide their insurer name and insurance policy number for the rental unit. The city does not publish a required coverage amount on its STR pages.
- 5
Set up tax collection & remittance
Platforms don't collect everything here: Minnesota state general sales tax (6.875%), Minneapolis Sales Tax (0.5%), Hennepin County Sales Tax (0.15%), Hennepin County Transit Sales Tax (0.5%), Metro Area Sales Tax for Housing (0.25%), Metro Area Transportation Sales Tax (0.75%), Minneapolis Entertainment Tax (3%), Minneapolis Lodging Tax (3%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 6
Configure your listing to the operating limits
Set your calendar and listing rules to respect the 2-unit-per-owner limit — platform delisting and fines in this market typically start with listings that visibly violate these limits.
- 7
Calendar the renewal before you forget it
This permit renews annual (budget $64 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 8
Know the cost of getting it wrong
The city warns that failure to comply is 'adequate grounds for the denial, refusal to renew, revocation, or suspension' of the license, and management-plan violations 'may result in enforcement actions, including adverse actions against the short-term rental license, administrative citations, and other fines.' Rental license renewals received after March 15 incur a 25% late fee; buying a rental property without applying for a license within 60 days triggers a $250 administrative fee (plus $20 per additional unit). Specific administrative-citation dollar amounts for STR violations are not published on the city's STR pages. Administered by Regulatory Services / Inspections Services; complaints are routed through 311. Applicants must submit a management plan, a neighbor notification letter (to all owners/renters within the building or within 50 feet of the property line), and a pre-inspection checklist, and must post the license certificate, a 311 poster, and an emergency floor plan in the unit. The license ID must appear on all platform listings. Violations of the management plan can trigger adverse actions against the license, administrative citations, and other fines.
Recent rule changes in Minneapolis
July 6, 2026
City refreshed its short-term rental licensing page
The city's short-term rental licensing page (marked 'Last updated on July 6, 2026') restates current rules with no substantive change: license required for stays of 30 days or less, one STR property besides the owner's home, 10-guest occupancy limit, and 10% cap in 20+ unit buildings.
Official source →January 1, 2026
2026 city license fee schedule: STR host registration $64
The City of Minneapolis 2026 license fee schedule lists 'Short-Term Rental Registration Hosts' at $64 and tiered Short-Term Rental Hosting Platform license fees of $1,071 / $5,891 / $26,775. (Exact publication date of the 2026 schedule not stated; dated here to the start of the 2026 fee year.)
Official source →February 1, 2025
MN DOR reissued Minneapolis Special Local Taxes Fact Sheet 164M
The Minnesota Department of Revenue revised Fact Sheet 164M (marked 'Revised February 2025'), confirming the 3% citywide Minneapolis Entertainment Tax applies to all short-term lodging and that the 3% Minneapolis Lodging Tax applies only to establishments with more than 50 rooms; total tax on a typical STR stay is 12.025%.
Official source →
Frequently asked questions
›Is Airbnb legal in Minneapolis?
Airbnb is legal in Minneapolis, MN, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Minneapolis?
Yes. Minneapolis requires a Short-term rental license (homestead properties file a short-term rental registration) to operate a short-term rental, which costs $64 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Minneapolis short-term rental permit cost?
The Short-term rental license (homestead properties file a short-term rental registration) costs $64 (annual renewal). The City's 2026 license fee schedule lists 'Short-Term Rental Registration Hosts' at $64, the standard fee for a homestead-property host. Non-homestead STR properties instead pay the tier-based rental dwelling license fees (e.g., Tier 1 for a 1-3 unit building: $98 building fee + $41/unit, per the rental license fee page), and one-time inspection fees can apply ($1,000 conversion fee for a first-time rental, $450 change-of-ownership fee). Hosting platforms (Airbnb/Vrbo) pay a separate Short-Term Rental Hosting Platform license of $1,071 to $26,775 depending on active listing count.
›Can I Airbnb a non-primary residence in Minneapolis?
Yes — Minneapolis does not limit short-term rentals to primary residences, although each owner is capped at 2 units. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Minneapolis?
Hosts in Minneapolis are subject to: Minnesota state general sales tax (6.875%), Minneapolis Sales Tax (0.5%), Hennepin County Sales Tax (0.15%), Hennepin County Transit Sales Tax (0.5%), Metro Area Sales Tax for Housing (0.25%), Metro Area Transportation Sales Tax (0.75%), Minneapolis Entertainment Tax (3%), Minneapolis Lodging Tax (3%) — roughly 15.03% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›How many short-term rentals can I own in Minneapolis?
Minneapolis caps operators at 2 short-term rental units. Always confirm current requirements with the city before operating.
›Do I need insurance to run a short-term rental in Minneapolis?
The short-term rental application requires the host to provide their insurer name and insurance policy number for the rental unit. The city does not publish a required coverage amount on its STR pages. Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Minneapolis?
No — in Minneapolis hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.
›What happens if I operate a short-term rental illegally in Minneapolis?
The city warns that failure to comply is 'adequate grounds for the denial, refusal to renew, revocation, or suspension' of the license, and management-plan violations 'may result in enforcement actions, including adverse actions against the short-term rental license, administrative citations, and other fines.' Rental license renewals received after March 15 incur a 25% late fee; buying a rental property without applying for a license within 60 days triggers a $250 administrative fee (plus $20 per additional unit). Specific administrative-citation dollar amounts for STR violations are not published on the city's STR pages. Administered by Regulatory Services / Inspections Services; complaints are routed through 311. Applicants must submit a management plan, a neighbor notification letter (to all owners/renters within the building or within 50 feet of the property line), and a pre-inspection checklist, and must post the license certificate, a 311 poster, and an emergency floor plan in the unit. The license ID must appear on all platform listings. Violations of the management plan can trigger adverse actions against the license, administrative citations, and other fines.
Minneapolis's STR rules changed 3 times recently.
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Related
Nearby covered markets
- St. Paul, MNPermit required
- Madison, WIPrimary residence only
- Milwaukee, WIPermit required
- Chicago, ILPermit required
- Traverse City, MIRestricted
More resources
- How to get a short-term rental permit in Minneapolis
- Minneapolis short-term rental taxes explained
- Can I Airbnb in Minneapolis?
- All Minnesota STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Minneapolis ranks among cheapest str permit cities
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- Short-term rental licenses — City of Minneapolisretrieved July 20, 2026
- Short-Term Rental Hosting License — City of Minneapolisretrieved July 20, 2026
- City of Minneapolis 2026 License Fee Schedule (official published fee table)retrieved July 20, 2026
- Rental license fees — City of Minneapolisretrieved July 20, 2026
- Application for a Short-Term Rental (STR packet, V3.1) — City of Minneapolisretrieved July 20, 2026
- Minneapolis Special Local Taxes, Sales Tax Fact Sheet 164M (Revised February 2025) — Minnesota Department of Revenueretrieved July 20, 2026
- Sales – Residential Short-Term Rentals — Minnesota Department of Revenueretrieved July 20, 2026
- Minneapolis Code of Ordinances, Chapter 351 — Short-Term Rental Hosting Platforms (Municode)retrieved July 20, 2026
- MinnPost: Four years after a contentious fight over short-term rentals (regulatory history, secondary source)retrieved July 20, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Minneapolis and a qualified professional before operating.