Short-Term Rental Laws in Mackinac Island, Michigan

Mackinac Island is one of the most physically and regulatorily unique STR markets in the US — motorized vehicles are banned island-wide (transport is foot, bicycle, horse), and most of the island's economy is the seasonal May-October tourism cycle. STRs are permitted but heavily constrained by: (a) the limited housing stock (~500 year-round residents), (b) tight historic-district overlays covering most of the developed island, (c) life-safety standards adapted for the no-motor-vehicle context. Many "Mackinac Island" listings are actually inn-style or seasonal rental rooms within owner-occupied homes rather than whole-home investor STRs.

City of Mackinac Island zoning is largely historic-district-overlay. STR permitted via business licensing subject to historic-preservation review for any exterior modifications + life-safety inspection adapted for the no-motor-vehicle context (fire-emergency egress is more demanding when fire trucks cannot reach a property quickly). Most STR inventory is in the village core surrounding the Marquette Park / Main Street area. Mackinac State Historic Parks land covers the bulk of the island and is not available for private development. The seasonal economy means STR licensing is effectively May-October active.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Mackinac Island Clerk administers. Annual renewal aligned with the May-October operating season. State of Michigan Use Tax + county tourism assessment collected via the standard MI accommodations tax framework. Operating without a license: administrative fines + revocation. Enforcement is high-visibility given the small island community — neighbor-complaint driven and effectively self-policing. Investors evaluating Mackinac Island STR should treat it as a specialized small-market opportunity rather than a scalable investor play.

Combined short-term lodging tax in Mackinac Island is approximately 14.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

Michigan Use Tax 6% + Mackinac County tourism assessment 5% + Mackinac Island lodging/tourism overlay 3% — combined ~14.0% on transient lodging (rates approximate; small-jurisdiction stack may vary annually)

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.