Minnesota has a 6.875% state sales tax, and many cities and counties impose additional local taxes. If you sell taxable goods or services in Minnesota, you may be required to collect and remit sales tax. This guide explains who must register, what’s taxable, current tax rates, and filing requirements.
Minnesota Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 6.875% |
| Local sales taxes | Vary by city and county |
| Economic nexus | $100,000 in sales OR 200 transactions |
| Sales tax permit required | Yes |
| Filing frequency | Monthly, quarterly, or annually |
| Registration | Minnesota Department of Revenue e-Services |
When Do You Have Sales Tax Nexus in Minnesota?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in Minnesota
- Uses a third-party fulfillment center located in Minnesota
- Exceeds $100,000 in sales or 200 transactions with Minnesota customers during a 12-month period
- Creates affiliate or click-through nexus through qualifying Minnesota-based partners
If you meet any of these conditions, you’ll generally need to register and collect Minnesota sales tax.
What Is Taxable in Minnesota?
Most tangible personal property sold in Minnesota is taxable, including:
- Electronics
- Furniture
- Jewelry
- Sporting equipment
Minnesota exempts most clothing and grocery food from sales tax, although accessories, sports equipment, prepared food, candy, and soft drinks are generally taxable.
Minnesota also taxes many digital products, including prewritten software and SaaS.
How to Register for a Minnesota Tax ID
Register online through the Minnesota Department of Revenue’s e-Services portal.
- Complete the online registration.
- Provide your business information and EIN.
- Receive your Minnesota Tax ID Number.
- Begin collecting sales tax.
Registration is typically processed within a few business days.
Pro tip: open a separate bank account specifically for sales tax funds. This money was never yours to begin with, and commingling it with operating revenue is one of the fastest ways to end up short when filing time comes.
Minnesota Sales Tax Rates
Minnesota’s statewide sales tax rate is 6.875%, and many cities, counties, and special districts impose additional local taxes. The total rate depends on where the customer receives the product.
Destination-Based Sourcing
Minnesota uses destination-based sourcing, meaning sales tax is based on the delivery location rather than the seller’s location.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, eBay, and Walmart Marketplace generally collect and remit Minnesota sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Filing Requirements
Collecting the tax is only part of the equation. You also need to file returns and remit what you’ve collected on schedule.
Minnesota assigns your filing frequency based on your expected tax liability. The breakdown generally works like this:
- Annual filing: if your estimated liability is less than $500 per year.
- Quarterly filing: if your liability falls between $500 and $10,000 per year.
- Monthly filing: if your liability exceeds $10,000 per year.
The Department of Revenue will notify you of your assigned frequency when you register. If your sales volume changes significantly, your frequency may be adjusted. Set calendar reminders for every due date.
Late filings may result in penalties, interest, and additional enforcement actions. Businesses that intentionally fail to collect or remit sales tax may face further civil or criminal penalties.
Minnesota Sales Tax Compliance Checklist
- Determine whether you have nexus.
- Register through Minnesota e-Services.
- Collect the correct state and local tax rates.
- Keep exemption certificates on file.
- File returns on time.
- Maintain accurate sales records.
FAQs
What is the Minnesota sales tax rate?
Minnesota has a 6.875% state sales tax, and many local jurisdictions charge additional sales taxes.
Who needs to collect Minnesota sales tax?
Businesses with a physical presence or more than $100,000 in sales or 200 transactions in Minnesota generally must collect sales tax.
Is clothing taxable in Minnesota?
Most clothing is exempt from Minnesota sales tax, although accessories and sports equipment are generally taxable.
How do I register for a Minnesota sales tax permit?
Register online through the Minnesota Department of Revenue’s e-Services portal before making taxable sales.
Does Amazon collect Minnesota sales tax?
Yes, marketplace facilitators like Amazon, Etsy, eBay, and Walmart Marketplace generally collect and remit Minnesota sales tax on marketplace sales.
Final Thoughts
Minnesota’s sales tax system combines a statewide rate with local taxes, so businesses must determine whether they have nexus, collect the correct rate, and file returns on time to stay compliant.
Need help with Minnesota sales tax registration, filings, or compliance? Contact our tax professionals today.
