Minnesota state seal

MinnesotaSales Tax

A Complete Guide For Businesses

Automate My MinnesotaSales Tax Filings

State Rate
6.875%

Local Tax
yes

State Portal
Department of Revenue

Phone
(651) 296-6181

General requirements

Minnesota is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the retail sale of tangible personal property (TPP) and taxable services
  • For distributors, items purchased for resale aren’t taxed

To file your return and pay sales tax:

Rates

The general sales tax rate is 6.875%. Additional local taxes apply. Local taxes imposed generally range from .05% to 6%. Restaurant sales are subject to specialized food and beverage local taxes in some jurisdictions.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your Minnesota sales tax rate:

How food is taxed

Groceries for home consumption are exempt from sales tax, while candy, soft drinks, and prepared foods are taxable.

Nexus in Minnesota

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a physical place of business including a warehouse or distribution center
  • Having employees, independent contractors, or representatives working in the state
  • Delivering goods in business owned vehicles
  • Providing taxable services in the state

Online activities that establish nexus in Minnesota include:

  • Having an affiliate or referral relationship with a contractor or representative in the state
  • Sales from these referrals exceed $10,000 over 12 months

Economic nexus in Minnesota:

  • According to state law, out-of-state sellers whose sales into Minnesota exceed 200 separate transactions or $100,000 gross revenue and 10 separate transactions must register with the state, collect sales tax on sales to Minnesota, and remit that sales tax to the state.
  • Effective date: Oct. 1, 2018
  • For more, check out this news release and FAQ for remote sellers.

Find more information about nexus in Minnesota.

Filing schedule

Due dates are as follows:

  • Annual filers: February 5 of the year following the end of the tax period
  • Quarterly filers: 20th day of the month following the end of the tax period
  • Monthly filers: 20th day of the month following the end of the tax period

Registering to collect sales tax in Minnesota

To collect taxes in Minnesota a business must register with the Department of Revenue and apply for a MN tax ID.

You can apply online or register by phone.

After applying you'll receive a confirmation email with your MN tax ID.

Penalties

Failure to pay - If you don't pay your tax on time, the following penalties apply:

  • 5% of the tax due if the payment is 1-30 days late
  • 10% if it is 31-60 days late
  • 15% if it is more than 60 days late

Failure to file - Add an additional 5% to the above penalty if you also don’t file your return on time.

Interest is figured on the total tax plus penalty at 4% (adjusted annually) from the due date until the date the total is paid.

We try our best to keep these guides up-to-date. If any of this information is no longer accurate, or if you'd like us to add something new, please email corrections and suggestions to support@lumatax.com. We love hearing feedback!