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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.

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…

Customized Prewritten Software Not Separately Stated is Taxable in Minnesota

The Minnesota Supreme Court held that customized prewritten software sales were subject to sales tax because they were not separately listed on invoices. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Minnesota Combines Sales and Use Tax Refund Claim Forms

Minnesota has combined its sales and use tax refund claim forms into one form, Form ST11, Sales and Use Tax Refund Request and Multiple Period Amended Return.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

Minnesota Clarifies Treatment of Repair and Maintenance Labor

The Minnesota Department of Revenue has issued a clarification regarding the sales and use tax treatment of repair and maintenance labor.

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…