Minnesota Statewide Rule
Minnesota Short-Term Rental Sales and Lodging Tax
Key Facts
- State sales tax
- 6.875%
- Statute
- Minn. Stat. 297A.61
- Marketplace collection
- Required by platforms
- Threshold
- Under 30 days
- Local lodging tax
- Up to 6% additional
Summary
Minnesota state law imposes 6.875% sales tax plus applicable local lodging taxes on all short-term rentals under 30 days, including Airbnb and Vrbo bookings. Marketplace providers must collect and remit on hosts' behalf statewide.
(2) lodging and related services by a hotel, rooming house, resort, campground, motel, or trailer camp, including furnishing the guest of the facility with access to telecommunication services, and the granting of any similar license to use real property in a specific facility, other than the renting or leasing of it for a continuous period of 30 days or more under an enforceable written agreement that may not be terminated without prior notice and including accommodations intermediary services provided in connection with other services provided under this clause;
Full Breakdown
Under Minn. Stat. 297A.61 and 297A.62, lodging for fewer than 30 consecutive days is subject to the 6.875% state general sales tax. Marketplace provider law (Minn. Stat. 297A.66) requires platforms like Airbnb, Vrbo, and Booking.com to collect Minnesota sales tax automatically on hosts' behalf. Cities and counties may impose additional local lodging taxes (typically 3-6%) under Minn. Stat. 469.190, but the underlying state sales tax obligation applies universally regardless of municipal short-term rental rules. Hosts renting fewer than 15 days per year are not exempt from sales tax, though federal income tax may not apply.
Violations & Penalties
Failure to collect or remit Minnesota sales tax on short-term rentals can result in tax assessments, penalties up to 10%, plus interest and possible criminal charges for willful evasion.
Frequently Asked Questions
Does Airbnb collect Minnesota sales tax for me?
Are short rentals under 15 days exempt?
Do local lodging taxes also apply?
Sources
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