Minnesota Sales Tax

On this page you will find handy sales and use tax information about Minnesota.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Minnesota that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

6.875% The state has reduced rates for sales of certain types of items.

Range of Local Rates

0% – 2% Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes

CLICK-THROUGH NEXUS

7/1/2013

AFFILIATE NEXUS

10/1/2018see state notice

ECONOMIC NEXUS

10/1/2018see state notice

MARKETPLACE NEXUS

10/1/2018see state notice

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Minnesota Issues Sales Tax Guide for Hotels and Other Lodging Establishments

The Minnesota Department of Revenue released a sales and use tax industry guide for hotels and other lodging establishments.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Minnesota Enacts Marketplace and Affiliate Nexus Legislation

Minnesota amended its definition of a retailer maintaining a place of business in the state as part of numerous sales and use tax nexus amendments.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Minnesota Enacts Changes to Qualified Business and Nonprofit Economic Development Corporation Exemptions

Effective July 1, 2017, the refundable sales tax exemption for qualified businesses in greater Minnesota cities is expanded to ten years for businesses that invest at least $200,000,000 over a ten-year period.

Minnesota Enacts Exemption for Fiber and Conduit used in Telecommunications or Pay Television Services

Effective for sales and purchases made after June 30, 2017, fiber and conduit used in transportation of telecommunications or pay television services are exempt in Minnesota.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Minnesota Annual Sales Tax Returns Are Due February 6

Annual filing in Minnesota is available for taxpayers who have an average of $100 or less tax due each month. Taxpayers must file a return if they are reporting $0 in tax.

Minnesota Supreme Court Affirms Award of Attorney Fees to Taxpayer

The Minnesota Supreme Court affirmed the Tax Court’s award of attorney fees to a taxpayer in a sales and use tax case since the application for attorney fees was timely filed. The decision strays from the Commissioner’s assessment.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Minnesota Changes to Upfront Exemption on Eligible Capital Equipment Purchases

Minnesota changed to an upfront sales tax exemption on eligible capital equipment purchases, effective 07/01/15. More…