Minnesota Short-Term Rental Sales and Lodging Tax

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.

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.