# Minnesota Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/minnesota
Published: September 22, 2026

Minnesota's 6.875% state rate approaches 9.9% across the Twin Cities metro. Economic nexus starts at $100,000 or 200 transactions.

- **SaaS:** Exempt
- **Clothing:** Exempt
- **Groceries:** Exempt
- **Digital Goods:** Taxable

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

Minnesota's state sales tax rate is 6.875%, with local taxes bringing combined rates to roughly 7% to 9.9% [1]. You have economic nexus once your sales into Minnesota exceed $100,000 or 200 retail sales over the prior 12 months [2]. SaaS is not taxable, though prewritten software is; digital products such as e-books and streaming are taxable, while clothing and food for home consumption are both exempt [3][4][5]. Appeal an order within 60 days, administratively or to the Minnesota Tax Court [7].

## Taxability Snapshot

## Sales Tax Rates

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.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 6.875% | Statewide |
| Local + transit | up to ~3% | Varies by location |
| Combined | 6.875%–9.875% | Varies by location |

To find the combined rate for a specific address, use our [US sales tax calculator](/us-sales-tax-calculator).

## Registration or Nexus Threshold

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.

## Marketplace Facilitator Law

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]

## Filing Frequency & Deadlines

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.

#### Exemptions

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.

## Resale & Exemption Certificates

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].

## Penalties

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.

## Audits & Appeals

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].

## Sources

- [1] [Minnesota DOR — Taxes and Rates (6.875% state)](https://www.revenue.state.mn.us/guide/taxes-and-rates)

- [2] [Minnesota DOR — Remote Sellers FAQ (economic nexus)](https://www.revenue.state.mn.us/sales-tax-faqs-remote-sellers)

- [3] [Minnesota DOR — Computer Software and Digital Products (SaaS not taxable, digital taxable)](https://www.revenue.state.mn.us/guide/computer-software-and-digital-products)

- [4] [Minnesota DOR — Clothing Sales (exempt)](https://www.revenue.state.mn.us/guide/clothing-sales)

- [5] [Minnesota DOR — Food and Food Ingredients (exempt)](https://www.revenue.state.mn.us/guide/food-and-food-ingredients)

- [6] [Minnesota DOR — Certificate of Exemption (Form ST3)](https://www.revenue.state.mn.us/guide/nontaxable-purchases-9)

- [7] [Minnesota DOR — Appeals Information (60 days, Tax Court)](https://www.revenue.state.mn.us/appeals-information)

- [8] [Minnesota DOR — Registering Your Business](https://www.revenue.state.mn.us/guide/registering-your-business)

- [9] [Minnesota Department of Revenue — Sales Tax Marketplace Providers](https://www.revenue.state.mn.us/sales-tax-marketplace-providers)

Verified July 2026 against Minnesota Department of Revenue published guidance.

## Frequently Asked Questions

### What is the Minnesota sales tax rate in 2026?

6.875% state, with combined local and transit rates reaching nearly 9.9% in parts of the Twin Cities metro.

### What is Minnesota's economic nexus threshold?

$100,000 in sales or 200 separate transactions into Minnesota over the current or prior 12-month period. Either one triggers nexus.

### Is SaaS taxable in Minnesota?

No. SaaS is not taxable in Minnesota, though prewritten software delivered on disk or by download is taxable.

### Is clothing taxed in Minnesota?

No. Minnesota exempts clothing, along with groceries and prescription drugs.

### When are Minnesota sales tax returns due?

The 20th of the month following the reporting period, moving to the next business day on weekends or holidays.

### What is the penalty for late Minnesota sales tax?

5% for late filing plus a late-payment penalty of 5% that grows 5% per additional 30 days up to 15%, plus interest from the due date.

## Related Reading

- [Is There Sales Tax on Clothing in Minnesota? A Guide for Businesses](/blog/is-there-sales-tax-on-clothing-in-minnesota)

- [Understanding Minnesota Sales Tax Exemption for Businesses](/blog/minnesota-sales-tax-exemption)

## US Sales Tax Calculator