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Minnesota sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the Department of Revenue — everything a remote seller needs to know about Minnesota, on one page.

Economic nexus threshold
$100,000
Statewide base rate
6.875%
Transaction threshold
200
MinneapolisSaint PaulBloomingtonRochesterDuluth
Minnesota · major filing jurisdictions
Nexus · Minnesota

When you owe sales tax in Minnesota.

Minnesota triggers an obligation to register, collect, and remit as soon as either nexus test is met. Physical presence activates from the first sale; economic nexus uses an OR-type threshold — cross either the dollar or transaction count and you're in.

Economic nexus
Threshold
$100,000 in retail sales delivered into Minnesota, OR 200 or more retail transactions delivered into Minnesota
Measurement type
Sales OR transactions — either alone is sufficient
Measurement period
Preceding 12 months
Included
Retail sales of taxable and exempt tangible personal property and digital goods — resale transactions and exempt services are excluded from the count
Marketplaces
Marketplace-facilitated sales are not excluded from the nexus rules — sales through platforms that collect on your behalf count toward your threshold
Physical nexus
Employees / remote staffOffice, branch, or retail locationWarehouse, inventory, or 3PLAgents or representativesConstruction sites

Any physical footprint in Minnesota — including a single remote employee working from home, a third-party fulfillment center holding your inventory, or an independent sales agent — creates physical nexus from the first taxable sale, with no dollar-volume minimum.

Rates · Minnesota

What you'll collect, city by city.

The statewide base is 6.875%. Local sales taxes stack on top, and Minnesota also taxes digital goods at the same rate as tangible property — here's how the major cities compare across product categories.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
MinnesotaStatewide base rate6.875%6.875%6.875%0%0%
Minneapolis9.025%9.025%9.025%0%0%
Saint Paul9.875%9.875%9.875%0%0%
Bloomington9.025%9.025%9.025%0%0%
Rochester8.125%8.125%8.125%0%0%
Duluth7.375%7.375%7.375%0%0%

SaaS and most services are not taxed in Minnesota. Digital goods — downloads, streaming, and electronic software — are taxable at the full combined rate of the delivery address. Rates verified as of June 11, 2026.

Need the exact rate for one address or invoice? Our calculator returns the combined state and local rate for any Minnesota ZIP code.

Open the sales tax calculator
Taxability · Minnesota

Is your product taxable here?

Minnesota is one of the few states that taxes digital goods alongside tangible property — but draws a clear line at SaaS and professional services, which remain exempt.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods delivered into Minnesota are taxable at the combined rate for the delivery address.
Digital goodsTaxableElectronically delivered products — including downloads, streaming music and video, and e-books — are taxable in Minnesota at the same rate as physical goods.
SaaS & cloud softwareNot taxableRemotely-accessed software as a service is exempt for both B2B and B2C customers — no download, no taxable transfer.
Professional servicesNot taxableConsulting, legal, accounting, and similar professional services are exempt from Minnesota sales tax.
General servicesNot taxableMost general services are not subject to Minnesota sales tax unless specifically enumerated as taxable by statute.
Bundled digital + tangiblePartialWhen a taxable digital product is sold with an exempt service in a single bundle, itemizing the invoice determines which portion is taxable — Minnesota generally taxes the digital component.
Filings · Minnesota

Filing schedules and due dates.

The Minnesota Department of Revenue assigns your filing frequency at registration based on expected tax liability and adjusts it over time. All returns are filed through the e-Services portal at revenue.state.mn.us.

FrequencyReturnDue dateWho it applies to
MonthlyMost commonMinnesota Sales and Use Tax Return (e-Services)20th of the month following the filing periodSellers with higher sales tax liability, as assigned by the Department
QuarterlyMinnesota Sales and Use Tax Return (e-Services)20th of the month following the end of the quarterSellers with moderate tax liability
AnnualMinnesota Sales and Use Tax Return (e-Services)February 5 following the calendar yearSmall sellers with low annual tax liability

Crossed the threshold, or about to?

A Commenda expert will review your Minnesota exposure, register you with the Department of Revenue, and take over the filing calendar — usually within a week.

The state authority

Minnesota Department of Revenue — the state's tax office.

The Minnesota Department of Revenue administers sales and use tax through a single e-Services portal. Registration, filing, payments, and rate lookups are all handled at revenue.state.mn.us — no separate local portals for state-level obligations.

revenue.state.mn.us

Registration requires a Tax Portal username and password; your State Tax ID is assigned after approval. Have your business entity details, federal EIN, and projected Minnesota sales ready.

What you can do there
  • Register for a sales tax permit

    Apply online through e-Services. Foreign businesses can register, and registration is free of charge.

  • File returns and pay

    All returns, amendments, and payments are submitted through the e-Services portal using your Tax Portal credentials.

  • Look up rates by address

    The Department's Sales Tax Rate Calculator returns the combined state and local rate for any Minnesota address.

  • Verify an exemption certificate

    Confirm a buyer's exemption status before honoring an ST3 certificate and releasing the tax obligation.

Exposure & exemptions · Minnesota

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Minnesota participates in the Multistate Tax Commission's voluntary disclosure program and offers its own disclosure path for out-of-state sellers who come forward before the Department contacts them.

Lookback
Typically limited to 3 years under a VDA — versus the standard statute of limitations if the state initiates contact
Penalties
Waived under a successful voluntary disclosure agreement
Interest
Still due on unpaid tax — interest relief is not standard
Unfiled returns
No statute of limitations runs until a return is filed; proactive disclosure stops the clock

Exemption certificates accepted

Collect a valid certificate at the time of sale and retain it — Minnesota places the burden of proof on the seller to demonstrate a transaction was exempt.

Resale
Minnesota ST3 Certificate of Exemption, completed by the buyer
Multi-state
MTC Uniform Sales and Use Tax Exemption Certificate accepted; Minnesota is a full SST member state
Nonprofit / government
ST3 with the applicable exemption reason; government purchasers and qualifying nonprofits may be exempt
Agricultural & manufacturing
ST3 with production or agricultural exemption reason; qualifying production equipment and farm inputs may be exempt

FAQ · Minnesota

Minnesota questions, answered.

The questions remote sellers ask us most about Minnesota.
Read our FAQ library

You hit economic nexus when, in the preceding 12 months, you make either $100,000 or more in retail sales delivered into Minnesota, or 200 or more retail transactions delivered into Minnesota — whichever comes first. It is an OR test, so crossing either number alone is enough.

Yes. Minnesota taxes electronically delivered products — including digital downloads, streaming music and video, e-books, and electronic software — at the same rate as tangible personal property. This is one of the more common surprises for digital-first businesses selling into the state.

No. Remotely accessed software as a service is exempt in Minnesota for both B2B and B2C sales. Because the customer never downloads or takes possession of the software, there is no taxable transfer under Minnesota law.

Yes. Sales facilitated through a marketplace — even when the marketplace collects and remits the tax on your behalf — are not excluded from your economic nexus calculation under Minnesota's rules.

Monthly filers must file by the 20th of the month following the reporting period. Quarterly filers are due the 20th of the month after the quarter ends. Annual filers have until February 5 following the calendar year. All returns are submitted through the Department of Revenue's e-Services portal.

Yes. A single employee working remotely from a Minnesota home office creates physical nexus immediately, regardless of your sales volume. The same applies to independent agents, sales representatives, or third-party warehouses holding your inventory in the state.

Minnesota uses the ST3 Certificate of Exemption for resale, agricultural, manufacturing, and other exempt purchases. Minnesota is also a full member of the Streamlined Sales Tax (SST) program, so the MTC Uniform Certificate is accepted as well.

Yes. Commenda monitors your Minnesota exposure, registers you with the Department of Revenue, calculates the right rate on every transaction including digital goods, and files each return on the assigned schedule. Book a call to see it on your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.