Honolulu vs Minneapolis

Hawaii Restricted | Minnesota Legal with Permit

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

Honolulu, Hawaii
Status Restricted
Permit Fee $1,000 initial registration; $500 annual renewal
Tax Rate ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $10,000/day for recurring violations; $5,000 initial fine
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

Honolulu charges $1,000 initial registration; $500 annual renewal for STR licensing, while Minneapolis charges $64 short-term rental registration fee. Honolulu renewal is annual, and Minneapolis renewal is annual. Overall, Minneapolis has a more permissive regulatory environment (Legal with Permit) compared to Honolulu (Restricted).

Tax Obligations

In Honolulu, hosts pay ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET). 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 Honolulu 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 Honolulu face penalties including $10,000/day for recurring violations; $5,000 initial fine. 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.

Honolulu Overview

STRs limited to resort-zoned and eligible apartment-zoned areas. Hosts must register as B&B (owner-occupied, max 2 guest rooms) or TVU (whole-home in eligible zones). Registrations are non-transferable.

Contact: Dept. of Planning and Permitting — (808) 768-7887

Full Honolulu 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 Honolulu or Minneapolis?
Honolulu is classified as "Restricted" while Minneapolis is "Legal with Permit." Honolulu's permit fee is $1,000 initial registration; $500 annual renewal 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 — Honolulu or Minneapolis?
Honolulu charges ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET), 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 Honolulu must handle taxes themselves.
Which city has stricter fines for illegal short-term rentals?
Honolulu: $10,000/day for recurring violations; $5,000 initial fine. Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Honolulu and Minneapolis have day limits for Airbnb?
Honolulu has no annual day limit. Minneapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Honolulu or Minneapolis?
For new hosts, consider the total cost of entry: Honolulu charges $1,000 initial registration; $500 annual renewal for permits with ~18.5% combined (11% state TAT + 3% county TAT surcharge + 4.5% GET) 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.