Regulatory Overview
State STR LicenseNot Required
State Preemption LawNo
Permit RequiredLocal Level Only
Owner-Occupied RequiredNo
Last Verified2026-01
Official source: https://www.revenue.state.mn.us
Tax Breakdown
6.875%
State Sales Tax
3%
Lodging / TOT
Est. Total Tax Burden~13.875%
Total is an estimate. Local taxes, county surcharges, and platform fees vary. Always verify with your local tax authority.
Key Rule Summary
No state STR license. State sales tax + lodging tax applies. Minneapolis requires STR license, capped at 1% of rental housing stock. Lake cabin country generally permissive.
Major City Rules
3 cities tracked
Minneapolis
Moderate
STR license required, cap of 1% of rental housing stock, inspections
St. Paul
Moderate
STR license required
Duluth
Host Friendly
No STR-specific ordinance beyond business license
Housing Market Data — US Census ACS
ACS 5-Year 2022
2,493,956
Total Housing Units
9.5%
Vacancy Rate
72.3%
Owner-Occupied
27.7%
Renter-Occupied
129,013
Seasonal/Vacation Units
5.2%
Seasonal Unit %
Source: US Census Bureau ACS 5-Year Estimates · Seasonal/vacation units are a proxy for STR-receptive housing stock.