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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.

Minnesota Tax Court Dismisses Untimely Appeal

The Minnesota Tax Court dismissed a taxpayer\’s appeal of a sales and use tax assessment because the appeal was not filed within 90 days of the Commissioner of Revenue\’s order assessing additional tax.

Minnesota Enacts Click Through Nexus Legislation

Under the legislation, a retailer is presumed to have a solicitor in Minnesota if it enters into an agreement with a resident under which the resident refers potential customers, often by a link, to the seller.

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Minnesota Revenue Notice Modified to Consider One-Time Rental of Laundered Items as Linen Supply Service

The renting and furnishing of laundered items on a one-time basis is considered a linen supply service, instead of a rental of tangible personal property.

Minnesota Amends its Rules Regarding Food, Sales to Exempt Entities

The Minnesota Department of Revenue has amended its rules on food, drinks, and meals; sales to exempt entities; and charitable, religious, and educational organizations.

Floor Coverings Purchased by Installer for Exempt Entities Deemed Taxable in Minnesota

A taxpayer, that sells and installs carpets and floor coverings, was found liable for use tax on its purchases of materials for contracts with exempt entities.

Minnesota Revokes Revenue Notice Regarding Exemption Certificates

A Minnesota revenue notice on exemption certificates has been revoked because there is already a statute that specifically provides the content and form of allowable exemption certificates.

Minnesota State Sales and Use Tax Rate Increases July 1, 2009 to 6.875%

Beginning July 1, 2009, the Minnesota sales and use tax rate will increase from 6.5% to 6.875%.

Minnesota Introduces Bills Proposing to Tax Some Internet Sales

The Minnesota House of Representatives and the Minnesota Senate have both introduced bills that are similar to the New York \”Amazon law.\”

Minnesota To Increase Sales and Use Tax Rate

Voters approved an increase to Minnesota\’s sales and use tax rate from 6.5% to 6.875%. The increase will take effect on July 1, 2009.

Minnesota Senate and House Pass Additional Omnibus Tax Bill

Minnesota has amended its sales and use tax laws to conform with recent changes to the Streamlined Sales and Use Tax Agreement (SSUTA).

Returnable Pallets Taxable in Minnesota

The Minnesota Department of Revenue issued a Revenue Notice concerning the taxability of returnable skids and pallets used for the storage and transport of food and beverage products. The Department ruled that skids and pallets are used primarily for storage…

Minnesota Exempts Fuel and Electricity Used for Agricultural Production

Minnesota provides a sales tax exemption for fuels, electricity, gas, and steam used in the agricultural production process,

MN Executive and Legislative Branches to Sever Contracts with Foreign Vendors.

Beginning in 2006, vendors holding contracts to provide goods or services to the Minnesota Department of Administration and the Minnesota Legislature must have a tax business identification number to indicate that they are registered to collect sales tax in the…

Minnesota: Voice over Internet Protocol Service Subject to Tax

Voice over Internet Protocol (VoIP) services are subject to Minnesota sales and use tax as a telecommunications service.

Minnesota Repeals Old Food Rule, Different Food Rule Amended

In a step toward conforming to the Streamlined Sales and Use Tax Agreement, Minnesota has repealed Rule 8130.0800 relating to meals and drinks and has amended Rule 8130.4700.

Minnesota Issues Modifications to Revenue Notice No. 1991-06

The modifications to the notice state that sales of tangible personal property primarily used in a trade or business do not qualify for the isolated or occasional sales tax exemption.

Minnesota Court Rules Equipment Transfer Was Taxable Lease, Not Occasional Sale

the court ruled that all the transactions constituted a lease and that all the payments made were subject to Minnesota sales and use tax. (

Minnesota Court Rules in Favor of XO Communications

The Minnesota Tax Court has ordered the Commissioner of Revenue to review the claims of XO communications and to issue refunds and interest.

Minnesota Exempts Telecom Purchases

Minnesota exempts capital equipment purchased for use in providing local exchange, wireless, and long-distance services.

Minnesota Refund Claims Must Be Filed By The Purchaser

A Minnesota sales and use tax statute identifies that a purchaser that qualifies for the capital equipment exemption must pay the tax and then submit a request for refund.

Minnesota Labor in “Off-Premise” Catering Events Not Taxable

If servers are hired to serve on catering company\’s premises, then the charges are taxable as part of the retail sale of taxable food.

Minnesota Massage Therapy Taxable

In Minnesota, a massage therapist that performs services that are not for the purpose of treatment of an illness, injury, or disease is subject to sales tax but is not liable for MinnesotaCare tax.

The Minnesota Court of Appeals has found that taxing all vending machine food sales does not violate the U.S. Constitution or any other laws

It was argued that this universal taxation was unconstitutional because other food retailers must only charge sales tax on soft drinks, candy, and prepared food.