What is the Minnesota state lodging tax rate?

6.88% statewide. Minnesota's state sales tax of 6.875% applies to lodging, layered with city- and special-district-level lodging taxes that can push the all-in rate past 14%. Minneapolis combines 3% city lodging tax + 3% entertainment tax for downtown blocks, plus the state portion. Duluth charges 5.5% city lodging tax. Airbnb and Vrbo collect the state portion under marketplace facilitator law; Minneapolis and St. Paul also have direct collection agreements. Smaller resort towns (Brainerd, Ely) typically require host-direct filing for their local lodging tax.

Do Airbnb and Vrbo collect Minnesota lodging tax for me?

Airbnb and Vrbo collect and remit lodging tax in most cases. Local taxes may still be your responsibility — verify with the state DOR.

What's the local add-on range in Minnesota?

Cities and counties may add 0% to 10% on top of the state rate.

Where can I see the official source?

The authoritative source is the Minnesota Department of Revenue at https://www.revenue.state.mn.us/. Always verify before filing.

When was this last verified?

Last verified 2026-05-05. Lodging-tax rates are reviewed annually; entries older than 12 months are flagged for re-verification.

Minnesota Lodging Tax Calculator

How Minnesota lodging tax works

Minnesota stacks three or more layers on short-term rental stays under 30 days:

6.875% state sales tax — applies to the room charge.
City and county lodging tax — most tourist-heavy cities levy 3–6% on top.
Special district taxes — Minneapolis, Saint Paul, and select suburbs add convention center, downtown, or transit improvement taxes that further inflate the rate.

Effective rates in Minnesota’s top STR markets:

Minneapolis (Hennepin County): 6.875% state + 0.5% Hennepin transit + 0.5% Minneapolis sales + 3% Minneapolis lodging + 2.625% Minneapolis entertainment tax (in some zones) = up to ~13.5%, climbing with downtown special districts
Saint Paul (Ramsey County): 6.875% + 0.5% Ramsey + 0.5% Saint Paul + 3% lodging = ~11%
Duluth (St. Louis County): 6.875% + 1.5% Duluth sales + 3% Duluth tourism + 2.5% food and beverage (separate) = lodging total around ~11.4%
Grand Marais / North Shore (Cook County): 6.875% + 1% Cook County transit + 3% lodging = ~10.9%
Rochester (Olmsted County): 6.875% + 0.75% Rochester + 7% lodging = ~14.6%

Special district math gets messy fast — always verify with the city for your exact address.

Platform collection

Airbnb and Vrbo collect and remit the 6.875% state sales tax in most cases. They also remit Minneapolis, Saint Paul, Rochester, and Duluth lodging taxes under marketplace-facilitator agreements. Smaller cities (Stillwater, Ely, Two Harbors, Lanesboro) are frequently the host’s responsibility.

Verify against the Minnesota Department of Revenue marketplace list before each tax period — coverage shifts as new cities sign on.

What this means in practice

For state sales tax — handled by the platforms.
For city lodging tax — if you’re in a smaller market, register with the city clerk, file monthly returns, and remit yourself.
For direct bookings — you handle every layer.
30+ night stays are exempt from state sales tax on lodging. Most city lodging taxes follow the same threshold.
Minneapolis and Saint Paul both require STR licenses in addition to tax registration — the license is a separate compliance step.

How to use the calculator above

Enter your booking subtotal (nightly rate × nights + cleaning fee, before tax).
Set the local add-on rate. Minneapolis = ~6.5% combined local layers. Saint Paul = 3.5%. Duluth = 4.5%. Grand Marais = 4%. Rochester = 7.75%.
Read the effective rate. For special downtown districts (Minneapolis entertainment tax zones), add the relevant district rate separately.

Source: Minnesota Department of Revenue. Verified 2026-05-11. Not tax advice — confirm with a CPA or the city clerk before filing.