The Ultimate Minnesota Sales Tax Guide

Running a business is tough, and navigating sales tax complexities can make it even harder.

Don’t worry — this Minnesota sales tax guide was created to help simplify it all. We’ll explore the sales tax rates across the state, determine if you need to collect them, and when to file and pay your taxes.

And to make things even easier, we’ll share a trusted solution to streamline sales tax management and keep your business compliant across the country.

Minnesota Sales Tax Rate Range 2025

Minnesota's sales rate is 6.875%. Additionally, counties and cities can levy their own local sales taxes.

For instance, Kettle River in Carlton County has a sales tax rate of 7.875%. This includes a state sales tax rate of 6.875%, a county sales tax of 0.5%, and a city sales tax rate of 0.5%.

How to Calculate Sales Tax in Minnesota

To determine your sales tax in Minnesota, you’ll need to add the following rates:

• State sales tax
• County sales tax
• City sales tax
• District sales tax

For instance, let's calculate the sales tax rate of Excelsior, Hennepin County:

• Minnesota state sales tax rate of 6.875%
• Hennepin County sales tax rate of 0.15%
• Excelsior sales tax rate of 0.5%
• District Sales tax rate of 1.5%

This brings the total sales tax rate to 9.025%.

Sales Tax Rates in Minnesota by County

To give an idea of the variety of sales tax rates for different counties, here is a comparison between a few of them:

Collecting Minnesota Sales Tax from Customers

Collecting Minnesota sales tax from customers can be complicated. Here’s what you need to understand in the state.

Do I Have to Collect Minnesota Sales Tax from Customers?

You’ll need to collect Minnesota sales tax if you meet these two requirements:

• You have a sales tax nexus in Minnesota
• You sell taxable products or services in Minnesota

What Creates Sales Tax Nexus in Minnesota?

You have a sales tax nexus in Minnesota if you meet any of the following factors:

• Physical presence: Businesses that sell or lease property in Minnesota, such as offices, healthcare facilities, distribution centers, etc.
• Representatives: Companies with employees, representatives, salespersons, and independent contractors in Minnesota.
• Delivery: Businesses that deliver tangible personal property into Minnesota in their own vehicles.
• Economic nexus: Companies with more than 200 retail sales shipped to Minnesota or that make more than $100,000 in retail sales shipped to Minnesota.

Do I Have to Collect Sales Tax from Minnesota Customers if I Sell on Amazon, Walmart, eBay, or Etsy?

No. 

Minnesota has a marketplace facilitator law requiring platforms like Etsy and Amazon to collect sales tax for third-party sellers on their platforms. However, if a marketplace facilitator’s sales are under $100,000, they don’t need to register, collect, or remit Minnesota sales tax.

Taxable Products in Minnesota

Minnesota applies sales tax to most tangible personal property and services, including food and services. Here’s an overview of taxable items in Minnesota:

Are Groceries Taxable in Minnesota? 

No, groceries are not taxable in Minnesota.

Is Clothing Taxable in Minnesota?

Clothing is generally not taxable in Minnesota, though there are a few exceptions. Accessories, fur, sports, recreational, and protective clothing are taxable. 

Are Digital Products Taxable in Minnesota?

Yes, most digital products are taxable in Minnesota. However, some digital products that aren’t taxable are digital newspapers, photos, materials used to produce a retail item as well as students' digital textbooks.

Note: Physical textbooks are also non-taxable in Minnesota. 

Is Software as a Service (SaaS) Taxable in Minnesota?

No, SaaS is non-taxable in Minnesota.

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Are Services Taxable in Minnesota?

Most services are non-taxable. However, there are a few exceptions that include:

• Admissions to regular season school games, events, concerts, plays, and activities

• Lodging
• Massages if part of ongoing treatment
• Pet grooming, boarding, and care services
• Telecommunications services

Tax-Exempt Items

Some items that are sales tax exempt in Minnesota are:

• Clothing, like formal wear, sandals, karate uniforms, and more.
• Food, like baking powder, cereals, dairy products, and more.
• Medicines, acne medications, antihistamines, burn drugs, and more.
• Secure firearm storage units.
• Barbershop services, like hair cutting, spa, hair removal, and more.

How to Register for a Minnesota Sales Tax Permit 

You can register for a Minnesota sales tax permit at the Business Tax Registration. Alternatively, you can call to register at 651-282-5225 or 1-800-657-3605 (toll-free).

Learn how to register for a seller's permit in every US state.

Do I Need a Minnesota Sales Tax License if I’m Only a Wholesaler? 

Wholesalers should have completed Form ST3 Certificate of Exemption to be exempt from sales tax.

Do I Need a Minnesota Seller's Permit if I Only Sell Temporarily in the State?

In most cases, Minnesota requires that you register and collect sales tax even if you only make a temporary sale in the state. 

However, you don’t need to register for sales tax if you meet all of the following conditions:

• You sell at only one event per calendar year that doesn’t last more than three days.
• You make sales of $500 or less during the calendar year.
• The seller provides a written statement verifying the above and provides their name, address, and telephone number.

How to Collect Sales Tax in Minnesota

Minnesota uses a destination-based sales tax sourcing state. This means that if you sell to a resident in Minnesota from another state, you must apply the sales tax rate based on the buyer’s shipping address.

Should You Collect Sales Tax on Shipping Charges in Minnesota?

Yes, shipping charges are subject to sales tax in Minnesota.

How to File and Pay Sales Tax in Minnesota

There are multiple ways to file and pay Minnesota transaction privilege tax:

• File and pay online: File online at MN e-services as Minnesota requires online filing. 
• Or, let Zamp handle your Minnesota sales tax filing and remittance so you never have to look at a sales tax return again! 

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing Minnesota Sales Tax

What Is Use Tax?

If you didn’t pay any sales tax at the time of purchase, you may owe use tax on taxable goods and services used in Minnesota. The use tax is the same as the sales tax in the state.

I Didn’t Collect Any Minnesota Sales Tax During This Period. Do I Still Need to File a Return?

Yes. 

You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.

What Is the Penalty for Filing and/or Paying Minnesota Sales Tax Late?

The penalty for failing to file Minnesota sales tax is 5% of the tax due.

The penalty for failing to pay Minnesota sales tax is 5% of the tax due and an additional 5% for every 30 days or fraction of 30 days that the amount due isn’t paid in full.

If you fail to file and pay electronically, you will be subject to an additional penalty of 5% of the sales tax due.

Can I Amend a Minnesota Sales Tax Return? 

Yes, you can amend a return in MN e-services.

How Often Do I Need to File and Pay Sales Tax in Minnesota?

In Minnesota, you must file sales tax monthly, quarterly, or annually. In general, the more sales you make and sales tax you collect, the more often you’ll be required to file. 

• Monthly: More than $500 average tax reported per month
• Quarterly: $100 to $500 average tax reported per month
• Yearly: Less than $100 average tax reported per month

Minnesota Sales Tax Due Dates

Here are the monthly sales tax filing due dates:

Minnesota quarterly sales tax filing due dates:

Minnesota annual sales tax filing due date:

Let The Experts Handle Your Minnesota Sales Tax Filing

Don’t let sales tax challenges hold your business back.

With Zamp, managing sales tax becomes effortless. We offer easy setup, precise calculations, as well as simplified filing and registration.

Get started with Zamp today and experience streamlined sales tax management!

About the author

The Zamp Team

The Zamp Team consists of experienced writers and editors who are dedicated to researching sales tax topics to help readers make smart decisions about their business and sales tax compliance. Collectively, the team has over 200 years of sales tax experience.