Ultimate Minnesota Sales Tax Guide

State taxing authority:	Minnesota Department of Revenue
2023 Minnesota state sales tax rate:	6.875%
Local sales tax rates?	Yes
Streamlined Sales and Use Tax Agreement Member?	Yes

Do I have to collect Minnesota  sales tax from customers? 

Retailers who meet these two requirements are required to collect sales tax in Minnesota: 

1. Has sales tax nexus in Minnesota
2. Sells taxable products or services in Minnesota

What creates sales tax nexus in Minnesota?

• Physical presence - A location, personnel, or other in-state business activities OR
• Economic nexus - Your retail sales exceeded $100,000 or you made 200 or more retail sales in the state in the previous 12 months

Read more in the Minnesota statutes about what creates nexus.

Learn more about sales tax nexus and when that means you’re required to collect sales tax here.

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, which means that marketplaces like Walmart or Amazon are required to collect sales tax on behalf of 3rd party sellers on their platform. 

If you have sales tax nexus in Minnesota, keep in mind that you are still required to collect sales tax on your other, non-marketplace, Minnesota sales.

Read more about marketplace facilitator sales tax laws here.

Are my products taxable in Minnesota? 

Most tangible personal property is subject to sales tax. However, some necessities like food, clothing and medication are not taxable in some states. And sometimes states consider things like digital goods (eBooks, music, movies) and software-as-a-service (SaaS) taxable even though they can’t be touched or held. 

Here’s how Minnesota taxes the most commonly sales tax exempt items:

Are groceries taxable in Minnesota? 

No, groceries are non-taxable in Minnesota.

Is clothing taxable in Minnesota? 

No, clothing is non-taxable in Minnesota, but with some exceptions. Accessories, fur clothing, sports and recreational clothing and protective clothing are all taxable

Are digital products taxable in Minnesota?

Yes, digital products are taxable in Minnesota. But student’s digital textbooks are not taxable. (Physical textbooks are also non-taxable in Minnesota.)

Is software-as-a-service (SaaS) taxable in Minnesota?

No, SaaS is non-taxable in Minnesota.

Are services taxable in Minnesota? 

Most services are non-taxable, with a few exceptions.

Taxable services include: 

• Admissions 
• Building cleaning and maintenance
• Detective, security and alarm services 
• Laundry, dry cleaning and alteration services
• Lawn and garden services
• Lodging
• Massages 
• Motor vehicle services (towing, washing, waxing, cleaning, etc.)
• Parking services
• Pet grooming, boarding and care services
• Telecommunications services

Read more about service taxability in Minnesota here.

How to Register for a Minnesota Seller’s Permit

Register for a Minnesota seller’s permit at the Minnesota Department of Revenue.

Go here to learn how to register for a sales tax permit in every US state.

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 are only making temporary sales in the state. But there is an exception for very small sellers. 

If you meet these guidelines, then you are not required to register:

1. You sell at only one event per calendar year and that event lasts no more than three days 
2. You make sales of $500 or less during the calendar year
3. The seller provides a written statement verifying the above and provides their name, address and telephone number

Read more about sales tax for temporary vendors in Minnesota here.

How to Collect Sales Tax in Minnesota

Minnesota is a “destination-based” sales tax sourcing state. This means that when you make a taxable sale to a customer in Minnesota, you should charge the combined sales tax rate at the buyer’s ship-to address. 

Should you collect sales tax on shipping charges in Minnesota? 

Yes. Shipping charges are subject to sales tax in Minnesota. 

Learn about sales tax on shipping in every US state here.

How to File and Pay Sales Tax in Minnesota

When your sales tax filing due date approaches, you can file Minnesota sales tax returns in multiple ways.

1. File and pay online - File online at MN e-services. Minnesota requires online filing 
2. Let Zamp handle your Minnesota sales tax filing and remittance so you never have to look at a sales tax return again! 

Learn how to file and pay sales tax in other US states here.

I didn’t collect any Minnesota sales tax 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, there is 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 will I be required to file and pay sales tax in Minnesota? 

In Minnesota you will be required to 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. 

Filing Frequency	Average Tax Reported
Monthly	More than $500 per month
Quarterly	$100 to $500 per month
Annually	Less than $100 per month

If your sales tax filing due date falls on a weekend or holiday, it’s due the next business day.

Minnesota sales tax due dates

Minnesota Monthly Sales Tax Filing Due Dates

Taxable Period	Filing Due Date
January 2023	February 21, 2023
February 2023	March 20, 2023
March 2023	April 20, 2023
April 2023	May 22, 2023
May 2023	June 20,2023
June 2023	July 20, 2023
July 2023	August 21, 2023
August 2023	September 20, 2023
September 2023	October 20, 2023
October 2023	November 20, 2023
November 2023	December 20, 2023
December 2023	January 22, 2024

Minnesota Quarterly Sales Tax Filing Due Dates

Taxable Period	Filing Due Date
Q1 (Jan-March) 2023	April 20, 2023
Q2 (Apr-June) 2023	July 20, 2023
Q3 (July-Sept) 2023	October 20, 2023
Q4 (Oct-Dec) 2023	January 22, 2024

Minnesota Annual Sales Tax Filing Due Date

Taxable Period	Filing Due Date
Year 2023	February 5, 2024