Eagan, MN Short-Term Rentals: Taxes & Fees (2026)

Two layers of money are involved. First, state tax: the Minnesota Department of Revenue treats residential short-term rentals (lodging for less than 30 days) as taxable lodging, so the full sales price is subject to state sales tax and any applicable local lodging tax; platforms like Airbnb and VRBO, as accommodations intermediaries, must register and collect these taxes. Second, local lodging tax: Minnesota Statutes Section 469.190 lets a city impose, by ordinance, up to a 3% tax on gross receipts from lodging at a hotel, motel, rooming house, tourist court, or resort, excluding rentals of 30 days or more; 95% of the proceeds must fund tourism promotion. We did not find a published Eagan local lodging-tax rate, so operators should confirm with the city and the Department of Revenue. Third, Eagan's own license fees apply only to licensable 30+ day rental dwellings, not STRs. Per the city's program, single-unit rental license fees and multiple-rental fees are set annually by City Council resolution in the fee schedule, along with a non-refundable application/background-check fee and a conversion fee when an owner-occupied home becomes a rental. Because Eagan does not license short-term rentals, there is no STR-specific city fee — only the state and possible local lodging taxes on any under-30-day stay.