Hennepin County levies a 0.5 percent county lodging tax on top of the 6.875 percent Minnesota sales tax, with cities like Minneapolis adding their own lodging taxes for a typical 13 to 15 percent total.
Hennepin County imposes a 0.5 percent county lodging tax authorized by special legislation, layered on top of the 6.875 percent Minnesota sales tax. Minneapolis adds a 3 percent lodging tax plus an additional entertainment and sports facility tax, putting downtown hotel rates near 14.65 percent before short-term-rental fees. Bloomington and other host cities have their own lodging taxes funding tourism bureaus and convention infrastructure. Short-term rentals booked through Airbnb or Vrbo collect Minnesota sales tax automatically; county and city taxes may need to be remitted directly.
Hotels and STR hosts who fail to collect or remit lodging taxes face Minnesota Department of Revenue audits, interest, and penalties up to 10 percent.
See how Hennepin County's transient occupancy tax rules stack up against other locations.
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