Minneapolis vs Phoenix

Minnesota Legal with Permit | Arizona Legal with Permit

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

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
Phoenix, Arizona
Status Legal with Permit
Permit Fee $250/year (non-refundable)
Tax Rate ~12.57% combined transient lodging tax (state + county + city)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations

Both cities have comparable STR regulatory environments.

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.

Full Minneapolis guide →

Phoenix Overview

Arizona SB 1168 (2022) grants cities enhanced enforcement while SB 1350 (2016) preempts outright bans. Phoenix requires STR permit, $500K liability insurance, neighbor notification, and prohibits STR use of accessory dwelling units.

Full Phoenix guide →

Frequently Asked Questions

Is it easier to Airbnb in Minneapolis or Phoenix?
Minneapolis is classified as "Legal with Permit" while Phoenix is "Legal with Permit." Minneapolis's permit fee is $64 short-term rental registration fee compared to $250/year (non-refundable) in Phoenix.
Which city has higher STR taxes — Minneapolis or Phoenix?
Minneapolis charges 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined), while Phoenix charges ~12.57% combined transient lodging tax (state + county + city). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses. Phoenix: $500 first violation; $1,000 second; $3,500 third; 12-month suspension after 3 violations.