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Last Updated: 10/23/2017

Vacation Home Rentals

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Sales and Use Tax

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Lodging and related services, including vacation home rentals, are subject to Minnesota sales tax. Vacation home rentals that are located within an area with a local tax are also subject to local sales and use taxes. City lodging taxes may also apply. The Department of Revenue administers city lodging taxes for Giants Ridge Recreation Area, Minneapolis, Rochester, and St. Paul.

For more information on lodging and related services, see Fact Sheet 141, Hotels and Lodging Facilities.

Vacation Home Rental Websites

Vacation home websites are responsible for collecting and remitting sales tax as well as all applicable general local taxes and local lodging taxes on the full sales price of the home rental, including charges for related services. You must register to collect sales tax if you facilitate the sale of lodging, including vacation home rentals.

Homeowners

Individuals who rent out their own home as a vacation rental property do not need collect sales tax when:

  • the home is being rented through a vacation home rental website; or
  • the home is being rented in an isolated incident.

Individuals must register to collect sales tax if they regularly facilitate the rental of a vacation home without the use of a vacation home rental website.

References

Revenue Notice 17-06, Sales and Use Tax – Lodging and Related Services – Residential Short-Term Rentals

Minnesota Statutes 297A.61, Subd. 3(g)(2), Lodging

Minnesota Statutes 297A.61, Subd. 21, Normal Course of Business

Minnesota Statutes 297A.61, Subd. 47, Accommodations Intermediary

Minnesota Statutes 297A.67, Subd. 23, Occasional Sales

Fact Sheet 141, Hotels and Lodging Facilities

Fact Sheet 164, Local Sales and Use Taxes

Fact Sheet 164M, Minneapolis Special Local Taxes

Fact Sheet 164S, Special Local Taxes