Minnesota Sales Tax Guide: Rate, Rules & Filing

Minnesota's state sales tax rate is 6.875%. Local and transit taxes raise combined rates to nearly 9.9% in parts of the Twin Cities metro; Minneapolis and St. Paul carry some of the highest combined rates in the state.

To find the combined rate for a specific address, use our US sales tax calculator.

Minnesota economic nexus is triggered when your sales into the state exceed $100,000 or 200 separate retail sales over the prior 12-month period. Either threshold creates an obligation. Physical presence creates nexus immediately.

Minnesota has required marketplace providers to collect and remit state and local sales tax on facilitated sales since October 1, 2019, under Minn. Stat. § 297A.66. An out-of-state marketplace provider must register and begin collecting once its total sales into Minnesota, including facilitated sales, exceed $100,000 or reach 200 or more retail sales shipped to Minnesota in the prior 12 months — the same Small Seller Exception threshold applied to remote sellers generally — with collection required to start on the first day of a calendar month no later than 60 days after the threshold is met. If a marketplace provider collects and remits tax on a sale, the marketplace seller does not need to collect tax on that facilitated transaction, unless the seller has given the provider its own Minnesota registration and the two have agreed the seller will collect instead.[9]

Minnesota assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 20th of the month following the reporting period. If the 20th falls on a weekend or holiday, the deadline moves to the next business day.

Minnesota exempts groceries, clothing, and prescription drugs — clothing is a notable exemption few states offer. Prewritten software is taxable whether on disk or downloaded, but SaaS (subscriptions to provider-hosted software) is not taxable in Minnesota.

Minnesota buyers give the seller Form ST3 (Certificate of Exemption), selecting the resale reason, so the seller does not collect tax [6]. The certificate does not expire unless the information on it changes, and misuse carries a $100-per-transaction penalty [6].

For the official form, multistate certificate rules and expiry, see the Minnesota resale certificate guide.

Late filing carries a 5% penalty on the unpaid tax, and late payment adds 5%, plus another 5% for each additional 30 days unpaid, up to 15%, plus interest from the due date.

You have 60 days from the date on the Department's order to file an administrative appeal or go directly to the Minnesota Tax Court [7]. If an administrative appeal is denied, you have another 60 days to appeal to the Tax Court [7].

• [1] Minnesota DOR — Taxes and Rates (6.875% state)

• [2] Minnesota DOR — Remote Sellers FAQ (economic nexus)

• [3] Minnesota DOR — Computer Software and Digital Products (SaaS not taxable, digital taxable)

• [4] Minnesota DOR — Clothing Sales (exempt)

• [5] Minnesota DOR — Food and Food Ingredients (exempt)

• [6] Minnesota DOR — Certificate of Exemption (Form ST3)

• [7] Minnesota DOR — Appeals Information (60 days, Tax Court)

• [8] Minnesota DOR — Registering Your Business

• [9] Minnesota Department of Revenue — Sales Tax Marketplace Providers

Verified July 2026 against Minnesota Department of Revenue published guidance.

• Is There Sales Tax on Clothing in Minnesota? A Guide for Businesses
• Understanding Minnesota Sales Tax Exemption for Businesses