Austin vs Minneapolis

Texas Legal but Limited | Minnesota Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Minneapolis, Minnesota
Status Legal with Permit
Permit Fee $64 short-term rental registration fee
Tax Rate 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $2,000 per violation; license revocation for repeated offenses

Minneapolis has more favorable STR regulations overall.

Permits & Licensing

Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for STR licensing, while Minneapolis charges $64 short-term rental registration fee. Austin renewal is annual, and Minneapolis renewal is annual. Overall, Minneapolis has a more permissive regulatory environment (Legal with Permit) compared to Austin (Legal but Limited).

Tax Obligations

In Austin, hosts pay 15% Hotel Occupancy Tax (9% city + 6% state). In Minneapolis, hosts pay 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). A key difference: platforms like Airbnb automatically collect taxes in Minneapolis, but hosts in Austin must collect and remit taxes themselves — a significant operational burden.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Austin face penalties including $500–$2,000/violation; license revocation possible. In Minneapolis, violations can result in Up to $2,000 per violation; license revocation for repeated offenses. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

Austin Overview

Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.

Contact: Austin Code Department — 3-1-1 or (512) 974-2000

Full Austin guide →

Minneapolis Overview

Owners limited to one STR property plus their homesteaded residence; buildings with 20+ units capped at 10% STR units. $300,000 liability insurance and neighbor notification required.

Contact: Inspections Services Division — (612) 673-3000

Full Minneapolis guide →

Frequently Asked Questions

Is it easier to Airbnb in Austin or Minneapolis?
Austin is classified as "Legal but Limited" while Minneapolis is "Legal with Permit." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $64 short-term rental registration fee in Minneapolis. Overall, Minneapolis has a more host-friendly regulatory environment.
Which city has higher STR taxes — Austin or Minneapolis?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Minneapolis charges 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). Notably, Minneapolis benefits from automatic platform tax collection, while hosts in Austin must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Austin and Minneapolis have day limits for Airbnb?
Austin has no annual day limit. Minneapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Austin or Minneapolis?
For new hosts, consider the total cost of entry: Austin charges $450/year (Type 2); $50/year (Type 1 homestead) for permits with 15% Hotel Occupancy Tax (9% city + 6% state) in taxes. Minneapolis charges $64 short-term rental registration fee with 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). Automatic tax collection in Minneapolis makes compliance easier for beginners.