Minneapolis Short-Term Rental Regulations

Last verified: 2026-04-06
TL;DR
Minneapolis requires Short-Term Rental Registration or Short-Term Rental Hosting License ($64) with no primary-residence requirement. Combined tax rate is 12.025%. No annual day limit, but each stay must be 29 days or fewer per stay.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Short-Term Rental Registration or Short-Term Rental Hosting License ($64)
Primary Residence Not required
Annual Day Limit No limit — 29 days or fewer per stay
Tax Rate 12.025%
Max Penalty Not publicly specified
Insurance $300,000 liability required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental Registration or Short-Term Rental Hosting License

FeeAmount
Initial cost$64
Renewal$64 / 1 year

This permit type does not require primary residence.

Application Process

In-person application at Business Licenses & Consumer Services, Public Service Building, 505 Fourth Ave. S., Room 220, Minneapolis, MN 55415

Tax Obligations

TaxRateAuthority
Minnesota State Sales Tax 6.875% State of Minnesota
Hennepin County Sales Tax 0.15% Hennepin County
Hennepin County Transit Sales Tax 0.5% Hennepin County
Metro Area Transportation Sales Tax (7-county metro) 0.75% Metropolitan Council / Minnesota Dept. of Revenue
Metro Area Housing Sales Tax (7-county metro) 0.25% Metropolitan Council / Minnesota Dept. of Revenue
Minneapolis Local Sales Tax 0.5% City of Minneapolis
Minneapolis Entertainment Tax (applies to short-term lodging citywide) 3% City of Minneapolis

Combined rate: 12.025% of gross rental income.

Collection: Platform auto-remit or property owner self-remit, depending on arrangement

Rental Limits

Minneapolis does not impose an annual cap on the number of nights you can rent. Each individual stay must be 29 days or fewer per stay.

Occupancy & Density Limits

10 occupants maximum

Zoning & Restrictions

In buildings with 20+ units, no more than 10% can be short-term rentals

Insurance & Safety

Insurance

Operators must maintain at least $300,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

Penalties for Non-Compliance

Not publicly specified

Compliance Checklist

Follow these steps to legally operate a short-term rental in Minneapolis:

  1. Meet safety requirements. Management plan. Neighbor notification. Posted floor plan showing exits and escape routes. Registration number listed in online listings.
  2. Obtain liability insurance. $300,000 minimum.
  3. Apply for Short-Term Rental Registration or Short-Term Rental Hosting License. Submit application + $64 fee.
  4. Register for tax accounts. Set up lodging tax accounts with Minnesota Department of Revenue.
  5. Collect and remit taxes. 12.025% on all bookings.
  6. Renew annually. $64 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Minneapolis?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Minneapolis requires a short-term rental permit.
How much does a short-term rental permit cost in Minneapolis?
A short-term rental permit in Minneapolis costs $64 per year.
Does Minneapolis require a short-term rental to be your primary residence?
No. Minneapolis allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
How many days a year can you short-term rent in Minneapolis?
Minneapolis does not cap the total number of nights per year, but each individual stay must be 29 days or fewer.
What taxes do you pay on a short-term rental in Minneapolis?
Short-term rental stays in Minneapolis are subject to a combined 12.025% in lodging taxes. This combines 6.875% Minnesota State Sales Tax + 0.15% Hennepin County Sales Tax + 0.5% Hennepin County Transit Sales Tax + 0.75% Metro Area Transportation Sales Tax (7-county metro) + 0.25% Metro Area Housing Sales Tax (7-county metro) + 0.5% Minneapolis Local Sales Tax + 3% Minneapolis Entertainment Tax (applies to short-term lodging citywide). The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Minneapolis?
Not publicly specified.

Official Sources

  1. Short-Term Rental Hosting License - City of Minneapolis
  2. Chapter 351 - Short-Term Rental Hosting Platforms | Code of Ordinances | Minneapolis, MN
  3. Sales – Residential Short-Term Rentals | Minnesota Department of Revenue