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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 Sales Tax Rates
State Rate

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

0% – 3% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

7/1/2013
AFFILIATE NEXUS

10/1/2018 – see state notice
ECONOMIC NEXUS

10/1/2018 – see state notice

New thresholds: 10/1/2019
MARKETPLACE NEXUS

10/1/2018 – see state notice

New thresholds: 10/1/2019
Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

70 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Minnesota Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: Resale, qualifying capital equipment, agricultural production, industrial production/manufacturing, multiple points of use, direct mail, qualified data centers, clothing

 

Entity types of exemptions: Certain nonprofit and charitable organizations, educational organizations, and religious organizations, government (limited), federal and diplomatic, state is required to use a Direct Pay, locals are limited and not exempt from all local tax types

 

Minnesota Exemption Certificate Forms
State Links
State Tax Web Page

Minnesota Department of Revenue
Rate Look-Up Page

Minnesota Sales Tax Rate Look-Up
Registration Link

Register for Minnesota Sales Tax
History & Fun Facts
HISTORY

Minnesota enacted its sales tax in 1967 at an initial rate of 3%.

 

Minnesota amended its sales and use tax laws in 2003 to conform with the Streamlined Sales and Use Tax Agreement.
FUN FACTS
  • Clothing is exempt from Minnesota sales tax, however, the exemption does not include sports and recreational equipment, protective equipment, and clothing made of fur.

Your Guide to Sales Tax in the Midwest

To catch you up and cut down your research time, we’ve compiled some of the essential Midwestern sales tax trends for 2024 that you need to know.

Minnesota Enacts New Retail Delivery Fee

On May 24, 2023, Minnesota Gov. Tim Walz signed legislation which establishes a retail delivery fee (RDF) for the state of Minnesota.

The Rise of Retail Delivery Fees: Unveiling the Impact on Consumers

We are putting the Colorado Retail Delivery Fee center stage and diving into how its story has unfolded thus far.

Minnesota Updates Sales Tax Facts on Detective and Security Services

Minnesota has made general updates to a Sales Tax Fact Sheet 114 that provides guidance regarding detective and security services.

Minnesota Releases Guidance about Services Necessary to Complete a Sale

The state of Minnesota has issued a revenue notice clarifying the department\’s position on services considered to be necessary to complete a sale, which are included in the sales price of a taxable transaction.

Minnesota Tax Department Clarifies Inclusion of Services in Sales Tax

The Minnesota Tax Department has released Revenue Notice 22-04, which clarifies the taxability of services.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

Minnesota Adds NFT Clarifications to Digital Product Sales Tax Fact Sheet

Minnesota has provided clarity to the taxability of non-fungible tokens (NFTs) due to an increase in use. NFTs entitle the purchase of goods and services, according to the recently updated fact sheet, when NFTs are used to purchase taxable products.

State of Minnesota Determines Credit Card Processing Fees Subject to Sales Tax

On April 25, 2022, the Minnesota Tax Court ruled that a credit card surcharge is subject to sales and use tax.

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.

Minnesota Clarifies Sales Tax for Online Discounts and Alternative Forms of Payment

The Minnesota Department of Revenue provided updates to its fact sheet that covers Coupons, Discounts, Rewards, Rebates, and Other Forms of Payment.

Minnesota Clarified Rules for Non-Profit Sales Tax Exemptions

In Notice 21-04, the Minnesota Department of Revenue added six requirements for non-profits to meet in order to be exempt from sales tax in the state.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Governor of Minnesota Approves Omnibus Tax Bill, Including Phase Out of Accelerated June Payments, New Exemptions for School Groups and Public Safety Facilities

On July 1, 2021, Minnesota Governor Tim Walz signed an omnibus tax bill that included new exemptions and considerations for businesses required to make June accelerated sales tax payments.

Minnesota Updates Guidance on Exemptions for Utilities used in Production

Minnesota has updated a sales tax fact sheet that provides guidance regarding exemptions for utilities used in production to include information on utility refunds for landlords.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Taxpayer Allowed Minnesota Industrial Production Exemption on Natural Gas and Electricity Purchases

A taxpayer’s motion of summary judgement against the Minnesota Commissioner of Revenue’s denial of its refund claim for sales tax paid for natural gas and electricity was granted.

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.

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.

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.

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.

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.