State Airbnb laws2026 25 sources cited

Minnesota Short-Term Rental Laws & Hotel Tax (2026)

Short-term rentals are legal in Minnesota with a state hotel or motel license plus any city or county permit; Airbnb collects the 6.875% sales tax, and local lodging taxes add up to 7% more.1,2,7,14,15,20,22

Source: AirROI Reviewed by , Founder @ AirROI Rules checked

From 23 official sources and 1 Airbnb help page. Not legal advice.

The short answer

Minnesota Airbnb Laws in Brief

  • State: the Department of Health licenses rentals of under one week as hotels or motels, with a $300 annual base fee.
  • Local: Minneapolis, Saint Paul, Rochester, Duluth, Crosslake and Cook County each require their own license or permit.
  • Duluth limits an owner-occupied rental to 21 nights a year; Two Harbors issues permits only in B1 and B2 commercial zones.
  • Taxes: 6.875% state sales tax plus local sales tax and city or county lodging taxes of 3% to 7% in the largest cities.

At a glance

Minnesota Short-Term Rental Laws at a Glance

State license required
Yes
Next rule change
Dec 1, 2026

The laws in brief

The rules a Minnesota host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Minnesota Short-Term Rental Laws at a Glance
TopicRule
PermitRentals of under one week need a hotel or motel license7
Who can hostMinneapolis: no license for a spare room with the host home14
WhereCities set their own licenses and rules25
Night capDuluth: 21 nights a year for an owner away from the home18
Minimum stayState definition: under one week1
GuestsAlexandria: three guests per bedroom, 12 at most4
PlatformsPlatforms that facilitate bookings collect the tax9
SafetyState Fire Marshal does not inspect rental homes8
NeighborsSaint Paul: no commercial or social events16

Your home

Can You Host an Airbnb in Minnesota? It Depends on the Home

Whether you can host in Minnesota turns on whose home it is and whether you live there.

Your own home, rented whole while you're away

Allowed with conditions

Allowed with a state hotel or motel license and the local license: Minneapolis and Saint Paul require a city license, and Duluth limits an owner-occupied home to 21 nights a year under an Accessory Vacation Dwelling Unit, Limited permit.7,14,15,18

A room in your home with you present

Allowed with conditions

Minneapolis does not require a city license for a spare room while the host stays home, Rochester requires a registration for owner-occupied rentals, and Duluth's Accessory Home Share allows up to 4 guests for 1 to 29 nights with the owner present.14,17,18

A second home or investment property you don't live in

Allowed with conditions

Depends on the city: Minneapolis allows one non-homestead license per owner, Rochester requires a license and inspection, Duluth caps whole-home Vacation Dwelling Unit permits, and Two Harbors issues new permits only in B1 and B2 commercial zones.5,14,17,18

A rented apartment (tenant hosting)

Allowed with conditions

Saint Paul licenses an owner or a tenant who provides a dwelling unit for short-term rental, with a lease or proof of ownership submitted with the application.15

A condo or unit in a larger building

Allowed with conditions

In a Minneapolis building with 20 or more units only 10 percent of the units can be short-term rentals, a percentage that does not apply to condo buildings.14

Permit

Do You Need a License for Airbnb in Minnesota?

Yes. Minnesota hosts need the Hotel or motel license for a vacation home rental from the Minnesota Department of Health, or the city or county health agency it has delegated licensing to; the city or county issues its own license or permit. It costs $300.1,2,7,14,15,20,22

Who needs it
Hosts who rent a home, cabin or room for periods of under one week. The Department of Health lists a vacation home rental as a hotel or motel license category for one or more units.1,2,7,14,15,20,22
Issued by
Minnesota Department of Health, or the city or county health agency it has delegated licensing to; the city or county issues its own license or permit
Valid for
The Department of Health issues hotel and motel licenses on an annual basis. Cook County licenses expire on December 31 each year, and Saint Paul licenses expire one year after issue.
Platform checks
Minneapolis hosts put the city license ID on the platform listing, and Saint Paul licenses hosts and platforms and bars advertising without a valid host license.

Fees

Fees
FeeAmount
Hotel or motel base feeAnnual base fee for hotels, motels and lodging establishments licensed by the Department of Health.$300
Per sleeping accommodation unitAdded to the base fee for each guest room, cottage or other rental unit, up to a maximum of $1,500.$15
Statewide hospitality feePaid with the license fee for each licensed activity.$50
Late penalty for operating without a licenseAdded to the license fee for operating up to 30 days without a license; a $450 late fee applies after 30 days.$200
Cook County vacation rental licenseCounty license for new and renewing vacation rentals, in addition to any Department of Health license.$600
Crosslake short-term rental licenseCity license fee, paid when the application is submitted; a fire and life-safety inspection is also required.$750

Who qualifies

  • A rental of under one week falls in the hotel or motel category, whether it is a whole home or part of one
  • The license is annual and the establishment's location decides which agency handles plan review and licensing
  • Cities and counties add their own conditions: Minneapolis limits an owner to one non-homestead license, Two Harbors issues permits only in B1 and B2 commercial zones, Duluth caps whole-home permits

How to apply

  1. Confirm with the city or county zoning office that short-term rental is allowed at the address and which local license applies.
  2. Apply to the Minnesota Department of Health, or to the city or county health agency that handles lodging licenses where the Department has delegated them, and submit plan review with the first application.
  3. Apply for the city or county short-term rental license or permit, which may require an inspection, insurance and a local contact.
  4. Register with the Department of Revenue for sales tax if you take bookings outside a platform that collects it, and with the city or county for any lodging tax it administers.

Applications go through the official application page .

Permit rules

Rentals of under one week need a hotel or motel license
The Minnesota Department of Health licenses an establishment that rents rooms for periods of under one week as a hotel or motel.7
Vacation home rentals are named in the license category
The Department of Health lists a vacation home rental among the examples of a hotel or motel, for one or more units and stays of one night or more.7
Location decides which agency licenses
Lodging is licensed by different agencies in Minnesota, and the rental's location decides whether the state, a county or a city health agency handles plan review and licensing.7
State licenses are annual
Initial and renewal hotel and motel licenses are issued on an annual basis, and a first application must be approved, including plan review, before operating.2
Plan review fee with the first application
A construction plan review fee must accompany the initial license application for a hotel or motel.2
Platforms that facilitate bookings collect the tax
When an owner uses an accommodations intermediary such as a booking platform to facilitate all sales, the intermediary registers as a retailer and collects, reports and remits the tax.9
Minneapolis: license for stays of 30 days or less
Minneapolis requires a short-term rental license for any rental of 30 days or less, including bookings on platforms such as Airbnb and Vrbo.14 Applies to: Minneapolis
Saint Paul: annual host license for stays under 30 days
Saint Paul requires a Short-Term Rental Host license for any owner or tenant who rents out a dwelling unit for under 30 days, and it is unlawful to advertise or operate without one; the license expires one year after issue.15 Applies to: Saint Paul
Rochester: license or registration by owner presence
In Rochester a non-owner-occupied short-term rental needs a Short Term Rental license and a compliant inspection, while an owner-occupied one needs registration.17 Applies to: Rochester
Cook County: county license for $600 a year
Cook County requires every new vacation rental to hold a county Vacation Rental License before renting, at $600 a year for new and renewing licenses.20 Applies to: Cook County
Crosslake: license before advertising
Crosslake requires an approved short-term rental license before a property is advertised or operated, with a $750 license fee and a fire inspection.22 Applies to: Crosslake

Who can host

What Minnesota Cities and Counties Can and Can't Regulate

Cities set their own licenses and rules
Cities have authority under state law to license and regulate activities for the general welfare, and short-term rental licenses, caps and zoning differ from city to city.25
Minneapolis: no license for a spare room with the host home
A Minneapolis host who rents a spare room while remaining in the home does not need a short-term rental license and states that the space is exempt when registering on a platform.14 Applies to: Minneapolis
Minneapolis: one extra short-term rental per owner
An owner in Minneapolis may hold only one short-term rental license for a property other than their home, and the limit covers LLCs.14 Applies to: Minneapolis
Minneapolis: 10 percent of units in larger buildings
In a Minneapolis building with 20 or more units, only 10 percent of the units can be short-term rentals; the percentage does not apply to condo buildings.14 Applies to: Minneapolis
Saint Paul: allowed throughout the city
Short-term rentals have been allowed throughout Saint Paul since December 2, 2017, subject to the city license.16 Applies to: Saint Paul · In force since December 2, 2017
Duluth: citywide cap on whole-home vacation dwelling units
Renting an entire Duluth unit without the owner present needs a Vacation Dwelling Unit permit, which is subject to a citywide cap except in Form districts.18 Applies to: Duluth
Two Harbors: permits only in B1 and B2 zones
Two Harbors issues short-term rental permits only in B1 and B2 commercial zoning districts, apart from existing permit holders in residential districts, who may renew.5 Applies to: Two Harbors

Local rules

Local Rules in Minnesota's 8 Largest Airbnb Markets

A state license doesn't replace local rules. Cities and counties still set registration, occupancy, parking and safety requirements. These are Minnesota's largest markets by active Airbnb listings, with the share of each market's listings that display a registration or license number.

  1. 1. Minneapolis

    Hennepin County

    Minneapolis requires a city short-term rental license for any rental of 30 days or less, but not for a spare room rented while the owner stays in the home. An owner may hold one short-term license for a property besides their home, and in buildings of 20 or more units only 10 percent of units can be short-term rentals. The combined sales tax is 9.025%, plus a 3% entertainment tax on short-term lodging.12,13,14

    • License for rentals of 30 days or less; none for a spare room with the host at home
    • One short-term license per owner for a property other than their home
    • Buildings of 20 or more units: only 10 percent can be short-term rentals (not condo buildings)
    • Occupancy limited to 10; license number goes on the platform listing

  2. 2. Saint Paul

    Ramsey County

    Saint Paul allows short-term rentals throughout the city but requires a Short-Term Rental Host license, renewed annually, for any dwelling rented under 30 days. Hosts show proof of at least $300,000 of insurance coverage or indicate that they use only Airbnb, VRBO or HomeAway, and platforms need their own city license. The combined sales tax is 9.875%, plus a 3% lodging tax (7% at 50 or more rooms).11,12,15,16

    • Host license required for stays under 30 days; expires one year after issue
    • Allowed throughout the city since December 2, 2017; no commercial or social events
    • Proof of insurance of at least $300,000, or using only Airbnb, VRBO or HomeAway
    • Non-owner-occupied residential buildings need a Fire Certificate of Occupancy

  3. 3. Rochester

    Olmsted County

    Rochester treats a non-owner-occupied short-term rental as needing a Short Term Rental license and a compliant inspection, and an owner-occupied one as needing registration. Rochester has the highest lodging tax among the largest markets, 7%, on top of an 8.125% combined sales tax.11,12,17

    • Non-owner-occupied rental: Short Term Rental license plus a compliant inspection
    • Owner-occupied rental: registration
    • Homes already operating had to register or license under the rental housing code changes
    • Taxes: 8.125% combined sales tax plus 7% Rochester lodging tax

  4. 4. Duluth

    St. Louis County

    Duluth issues three kinds of short-term rental permit: an Accessory Home Share with the owner present, an Accessory Vacation Dwelling Unit, Limited for an owner's own home, and a Vacation Dwelling Unit for a whole home without the owner, which is subject to a citywide cap. Airbnb collects Duluth's 3% lodging excise tax with the 8.875% combined sales tax.12,18,24

    • Accessory Home Share: owner present, up to 4 guests, 1 to 29 nights, no citywide cap
    • Accessory Vacation Dwelling Unit, Limited: owner's home, 2 to 7 nights, 21 nights a year
    • Vacation Dwelling Unit: whole home without the owner, up to 9 guests, citywide cap outside Form districts
    • Taxes: 8.875% combined sales tax plus 3% lodging excise tax collected by Airbnb

  5. 5. Alexandria

    Douglas County

    Horizon Environmental Health licenses and inspects private and vacation home rentals in Alexandria and across Douglas County. The city's lodging ordinance limits overnight guests to three per bedroom and 12 in total and allows one rental unit per parcel. The combined sales tax is 7.375%.4,12,19

    • License and inspection from Horizon Environmental Health
    • Overnight guests: three per bedroom, 12 at most
    • One private or vacation home rental unit per parcel
    • Taxes: 7.375% combined sales tax

  6. 6. Lutsen Township

    Cook County

    Cook County licenses every vacation rental, including those in Lutsen Township, for $600 a year, and a rental may also need a Department of Health lodging license. The county's lodging tax is 4% (1% in limited areas) and Airbnb does not remit it, so hosts pay the Cook County Auditor. The combined sales tax in the township is 8.375%.12,20,21

    • County Vacation Rental License before renting: $600 a year, expires December 31
    • Up to two rental units on a parcel in a residential zone; recreational vehicles cannot be rented
    • Lodging tax 4% (1% in limited areas), paid by the host to the county; Airbnb does not remit it
    • Taxes: 8.375% combined sales tax

  7. 7. Crosslake

    Crow Wing County

    Crosslake requires an approved short-term rental license before a property is advertised or operated, at a $750 license fee, with a fire and life-safety inspection and a local representative living within 30 miles. The combined sales tax is 7.375%.12,22

    • City short-term rental license before advertising or operating
    • $750 license fee, paid with the online application
    • Fire inspection and a local representative with an address within 30 miles
    • Taxes: 7.375% combined sales tax

  8. 8. Two Harbors

    Lake County

    Two Harbors issues short-term rental permits only in B1 and B2 commercial zoning districts, with existing residential permit holders allowed to renew, and caps permits at 4% of the housing stock. Applicants need a Minnesota Department of Health certificate of inspection, and guests pay a 1% city and a 4% Lake County lodging tax on top of the 8.375% combined sales tax.5,11,12

    • Permits only in B1 and B2 commercial zones; existing residential permits may renew
    • Permit cap of 4% of the city's housing stock
    • Department of Health certificate of inspection before a permit is issued
    • Taxes: 8.375% combined sales tax plus 1% city and 4% Lake County lodging taxes

Taxes

Minnesota Short-Term Rental Taxes

6.875% state sales tax everywhere, plus local sales tax and, in most larger markets, a city or county lodging tax: about 11.9% in Duluth, 12.0% in Minneapolis, 12.9% in Saint Paul and 15.1% in Rochester on the listing price and cleaning fee.

Minnesota Short-Term Rental Taxes
TaxRateCollected by
Minnesota sales tax 6.875% of the listing price including cleaning fees, for stays of 29 nights or fewer6.875%10,24Airbnb
Local sales taxes (city, county, transit, metro area) 0.5% to 3.0% on top of the state rate; for example 0.5% in Alexandria and Crosslake, 2.15% in Minneapolis, 3.0% in Saint Paul—12,24Airbnb
Duluth lodging excise tax 3% of the listing price including cleaning fees3%24Airbnb
Minneapolis entertainment tax on short-term lodging 3% on all short-term lodging in Minneapolis; the separate Minneapolis lodging tax applies only to establishments with more than 50 rooms3%13Check locally
Saint Paul lodging tax 3% for lodging with fewer than 50 rooms (7% at 50 or more rooms)3%11Check locally
Rochester lodging tax 7% on lodging in Rochester7%11Check locally
Two Harbors and Lake County lodging taxes 1% Two Harbors lodging tax plus 4% Lake County lodging tax5%11Check locally
Cook County lodging tax 4% (1% in limited areas), paid by the host to the Cook County Auditor4%21Host

What the host still handles

  • A Minnesota sales tax account with the Department of Revenue for bookings that no platform collects the tax on
  • A city or county lodging tax account where the tax is administered locally, such as the Cook County Auditor, because Airbnb does not remit Cook County's lodging tax
  • A Minnesota Department of Health hotel or motel license, or the license of the city or county agency it has delegated to
  • The city or county short-term rental license or permit where one is required6,9,10,11,12,13,21,24

Operating rules

Operating Rules for Minnesota Short-Term Rentals

State definition: under one week
State law defines a hotel or motel as a place that furnishes sleeping accommodations to the public for periods of under one week, which is the threshold for the state license.1
State Fire Marshal does not inspect rental homes
The State Fire Marshal says short-term rental homes operate like a hotel or resort cabin but that it does not inspect them.8
Sales tax applies to stays of under 30 days
Lodging is taxable when the rental term is under 30 days, or 30 days or more without an enforceable written lease.10
Hosts who take direct bookings register for sales tax
A property owner who facilitates the sales themselves must register as a retailer and collect, report and remit tax on the full price of lodging and related services.9
Saint Paul: no commercial or social events
A short-term rental in Saint Paul cannot be used for commercial or social events.16 Applies to: Saint Paul
Duluth: 21 nights a year for an owner away from the home
Duluth's Accessory Vacation Dwelling Unit, Limited permit lets an owner who lives in the home rent it while away for 2 to 7 consecutive nights, up to 21 nights per calendar year and 9 guests.18 Applies to: Duluth
Alexandria: three guests per bedroom, 12 at most
Alexandria's lodging ordinance limits overnight guests at a private or vacation home rental to three per bedroom and 12 in total, and allows one rental unit per parcel.4 Applies to: Alexandria

Fines

How to Avoid Airbnb Fines in Minnesota

Fines in Minnesota fall on hosting without the approvals described above, or outside the rules. With them in hand and the rules followed, none of the fines below apply.

  • Health Department enforcement: an administrative penalty order can reach $10,000 per violator for all violations found in an inspection, and operating without a license adds a $200 penalty to the license fee (a $450 late fee after 30 days).2,3
  • Operating a hotel or motel without a state license adds a penalty of $200 to the license fee for up to 30 days, then a $450 late fee.2
  • Two Harbors: violating the short-term rental section is a misdemeanor, and the city may fine, suspend or revoke a permit.5
  • Cook County: failure to pay the county lodging tax may lead to revocation of the vacation rental license.20

Changes

What's Changed in Minnesota's Airbnb Rules, and What's Next

One change is scheduled after October 20, 2026; the most recent rules are listed first.

  1. December 1, 2026 Upcoming
    Cook County vacation rental renewals open

    The Cook County Vacation Rental License renewal period begins on December 1 and ends on January 31, and licenses expire on December 31 of each year.20

  2. July 1, 2026
    New city lodging taxes in Chisago Lakes Area and Fairmont

    Chisago Lakes Area and Fairmont began a 3% lodging tax on July 1, 2026, and Northfield followed on October 1, 2026, all administered by the Department of Revenue.23

Earnings

What Could a Short-Term Rental in Minnesota Earn?

The rules shape the numbers: a permit that costs $300 a year and a cap of 21 nights a year. For a specific address, the short-term rental calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a home could earn

FAQ

Minnesota Short-Term Rental Laws: Frequently Asked Questions

Is Airbnb legal in Minnesota?

Yes. The Minnesota Department of Health lists a vacation home rental as a hotel or motel license category, and cities and counties add their own licenses and zoning, so legality depends on the license and the address.7,25

Do I need a permit for Airbnb in Minnesota?

Usually, in two layers. The Department of Health license covers rentals of under one week, and local licenses apply in places such as Minneapolis, Saint Paul, Rochester, Crosslake and Cook County.1,7,14,15,17,20,22

How much is the Minnesota hotel or motel license?

The state license has a $300 annual base fee, $15 for each sleeping accommodation unit (up to $1,500) and a $50 statewide hospitality fee. Local licenses cost extra, such as $600 a year in Cook County and a $750 fee in Crosslake.2,20,22

Can I rent a home I don't live in on Airbnb in Minnesota?

In many cities, with limits. Minneapolis allows one non-homestead short-term rental license per owner, Duluth caps whole-home Vacation Dwelling Unit permits, and Two Harbors issues permits only in B1 and B2 commercial zones.5,14,18

Does Airbnb collect hotel or occupancy tax in Minnesota?

Airbnb collects the 6.875% state sales tax, local sales and special taxes of 0.5% to 3.0%, and Duluth's 3% lodging tax. Hosts still file for taxes Airbnb does not remit, such as Cook County's lodging tax.21,24

What is the total tax on an Airbnb stay in Minnesota?

The state rate is 6.875%, and local taxes raise it: about 11.9% in Duluth, 12.0% in Minneapolis, 12.9% in Saint Paul and 15.1% in Rochester, from the combined sales tax plus the city lodging or entertainment tax.11,12,13,24

What is the fine for hosting without a license in Minnesota?

The Department of Health can issue an administrative penalty order of up to $10,000 per violator, and a hotel or motel operating without a license owes a $200 penalty on top of the license fee. Cities and counties set their own penalties.2,3

Is there a limit on how many nights I can host in Minnesota?

Caps are local. Duluth limits an owner-occupied Accessory Vacation Dwelling Unit, Limited to 21 nights per calendar year, while Minneapolis limits occupancy to 10 and an owner to one extra rental.14,18

Do I have to register for sales tax if I use Airbnb?

Not for bookings the platform facilitates, since the accommodations intermediary registers and collects the tax. An owner who takes bookings directly must register as a retailer with the Department of Revenue.9

Can I rent a room in my home in Minnesota?

Often yes. Minneapolis requires no city license for a spare room while you stay home, Rochester requires a registration for owner-occupied rentals, and Duluth's Accessory Home Share allows up to 4 guests for 1 to 29 nights with the owner present.14,17,18

Does the state inspect my short-term rental?

The State Fire Marshal does not inspect short-term rental homes. Local agencies inspect instead: Crosslake requires a fire inspection and Two Harbors requires a Department of Health certificate of inspection.5,8,22

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. The Two Harbors city code on American Legal was read in a browser.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the state agency and your city or county has the final word on any application.

Sources

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

  1. 1. Minnesota Statutes 157.15 - Definitions · Office of the Revisor of Statutes
  2. 2. Minnesota Statutes 157.16 - Licenses required; fees · Office of the Revisor of Statutes
  3. 3. Minnesota Statutes 144.99 - Enforcement · Office of the Revisor of Statutes
  4. 4. City of Alexandria Lodging Ordinance (City Code Section 5.09), January 2019 · City of Alexandria
  5. 5. Two Harbors City Code, Sec. 4.42 Short Term Rentals · City of Two Harbors
  6. 6. Minnesota Statutes 469.190 - Local lodging tax · Office of the Revisor of Statutes
  7. 7. Lodging in Minnesota · Minnesota Department of Health
  8. 8. Short-term rental home properties · Minnesota Department of Public Safety, State Fire Marshal
  9. 9. Sales - Residential Short-Term Rentals · Minnesota Department of Revenue
  10. 10. Sales - Lodging and Related Services · Minnesota Department of Revenue
  11. 11. Special Local Taxes, Sales Tax Fact Sheet 164S (4th quarter 2026) · Minnesota Department of Revenue
  12. 12. Local Sales and Use Tax Rate Guide, effective 10/1/2026 - 12/31/2026 · Minnesota Department of Revenue
  13. 13. Minneapolis Special Local Taxes, Sales Tax Fact Sheet 164M · Minnesota Department of Revenue
  14. 14. Short-Term Rentals · City of Minneapolis
  15. 15. Short Term Rental Host and Platform License · City of Saint Paul, Department of Safety and Inspections
  16. 16. Short Term Rentals · City of Saint Paul, Department of Safety and Inspections
  17. 17. Property Owners & Landlords (Short-Term Rental Information) · City of Rochester
  18. 18. Short Term Rentals · City of Duluth Construction Services and Inspections
  19. 19. Private/Vacation Home Rentals · Horizon Public Health
  20. 20. Cook County Vacation Rental License FAQ's · Cook County, Minnesota
  21. 21. Lodging Tax · Cook County Auditor-Treasurer
  22. 22. Short-term Rentals · City of Crosslake
  23. 23. Local Sales and Use Taxes · Minnesota Department of Revenue
  24. 24. Occupancy tax collection and remittance by Airbnb in Minnesota · Airbnb Help Center
  25. 25. Regulations and Licensing · League of Minnesota Cities