Navigating Sales Tax in Minnesota

Q: Are resale certificates accepted in Minnesota?

Yes. Minnesota accepts exemption certificates using Form ST3 , and purchasers must be properly registered to claim resale exemptions.

This guide provides an overview of Sales Tax in Minnesota, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Minnesota.

Last Updated: May 2025

200

different exemptions are provided, including clothing – one of only a few states to do so.

Minnesota at a glance.

State

Minnesota

Tax Rate Range

6.875% - 8.375%

Economic Nexus Threshold

$100,000 in retail sales or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6.875%

When should your
business collect Sales
Tax in Minnesota?

A business must collect Minnesota sales tax once it establishes either physical or economic nexus. Once nexus is met, the business must register for a Minnesota Tax ID through MN e-Services and begin collecting tax on Minnesota-destination sales as required under destination-based sourcing rules.

Minnesota physical sales tax nexus.

A business establishes physical nexus in Minnesota when it has any presence or activity in the state that supports sales.

Sales tax physical nexus checklist for Minnesota

The following conditions might establish a physical nexus in Minnesota:

Maintaining an office, branch, showroom, shared office, or home office used for business

Owning or leasing inventory, equipment, or property in the state

Housing inventory in a third-party fulfillment center (e.g., Amazon)

Having employees, agents, contractors, or reps operating in Minnesota

Sending personnel into Minnesota for sales, delivery, installation, assembly, servicing, or repair

Attending trade shows or events where sales are solicited or orders are taken

Which services are taxable in Minnesota?

Digital goods - downloads, streaming media, e-books, audio and video content - because Minnesota classifies many electronically delivered products as taxable.

Pre-written (canned) software, whether delivered electronically or on physical media, because it is treated as tangible personal property.

Delivery-related services, since delivery charges follow the taxability of the underlying item and remain taxable when the item itself is taxable.

Minnesota taxes certain software-related and digital services, along with taxable services tied to tangible personal property.

Minnesota sales tax information:

Minnesota is a destination-based state. Tax is calculated using the state rate (6.875%) plus any applicable local rates, based on where the customer receives the product. Delivery charges are taxable whenever the underlying item is taxable.

Minnesota taxes tangible personal property, prewritten software, digital goods, and delivery charges when associated with taxable items, while exempting SaaS that does not involve a software transfer.

Register for a Minnesota Tax ID through MN e-Services, providing business information and identification; registration is free, and remote sellers follow the same path.

Once registered, sellers must collect tax using destination sourcing, charge tax on delivery for taxable goods, apply the combined state and local rates, maintain exemption certificates when applicable (Form ST3), and file returns electronically through MN e-Services.

Sales Tax return due dates explained.

Minnesota assigns filing frequency based on average monthly tax liability. Monthly filers must file by the 20th of the following month, quarterly filers by April 20, July 20, October 20, and January 20, and annual filers by February 5. Late filings accrue a 5% penalty, with additional penalties every 30 days up to 15%, and interest at 8%. Returns are generally filed electronically, with paper exceptions permitted only in special circumstances.

FAQs

Does Minnesota tax shipping separately if it’s itemised?

No. Minnesota taxes delivery charges whenever the underlying item is taxable, even if shipping is separately stated.

Are resale certificates accepted in Minnesota?

Yes. Minnesota accepts exemption certificates using Form ST3, and purchasers must be properly registered to claim resale exemptions.

How long should I retain sales tax records?

Businesses should keep all sales tax records (receipts, invoices, exemption certificates, and shipping documents) for at least 3½ years, matching Minnesota’s audit window.

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Navigating Sales Tax in Minnesota

This guide provides an overview of Sales Tax in Minnesota, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Minnesota.

Last Updated: May 2025

200

different exemptions are provided, including clothing – one of only a few states to do so.

Minnesota at a glance.

State

Minnesota

Tax Rate Range

6.875% - 8.375%

Economic Nexus Threshold

$100,000 in retail sales or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6.875%

When should your
business collect Sales
Tax in Minnesota?

A business must collect Minnesota sales tax once it establishes either physical or economic nexus. Once nexus is met, the business must register for a Minnesota Tax ID through MN e-Services and begin collecting tax on Minnesota-destination sales as required under destination-based sourcing rules.

Minnesota physical sales tax nexus.

A business establishes physical nexus in Minnesota when it has any presence or activity in the state that supports sales.

Sales tax physical nexus checklist for Minnesota

The following conditions might establish a physical nexus in Minnesota:

Maintaining an office, branch, showroom, shared office, or home office used for business

Owning or leasing inventory, equipment, or property in the state

Housing inventory in a third-party fulfillment center (e.g., Amazon)

Having employees, agents, contractors, or reps operating in Minnesota

Sending personnel into Minnesota for sales, delivery, installation, assembly, servicing, or repair

Attending trade shows or events where sales are solicited or orders are taken

Which services are taxable in Minnesota?

Digital goods - downloads, streaming media, e-books, audio and video content - because Minnesota classifies many electronically delivered products as taxable.

Pre-written (canned) software, whether delivered electronically or on physical media, because it is treated as tangible personal property.

Delivery-related services, since delivery charges follow the taxability of the underlying item and remain taxable when the item itself is taxable.

Minnesota taxes certain software-related and digital services, along with taxable services tied to tangible personal property.

Minnesota sales tax information:

Minnesota is a destination-based state. Tax is calculated using the state rate (6.875%) plus any applicable local rates, based on where the customer receives the product. Delivery charges are taxable whenever the underlying item is taxable.

Minnesota taxes tangible personal property, prewritten software, digital goods, and delivery charges when associated with taxable items, while exempting SaaS that does not involve a software transfer.

Register for a Minnesota Tax ID through MN e-Services, providing business information and identification; registration is free, and remote sellers follow the same path.

Once registered, sellers must collect tax using destination sourcing, charge tax on delivery for taxable goods, apply the combined state and local rates, maintain exemption certificates when applicable (Form ST3), and file returns electronically through MN e-Services.

Sales Tax return due dates explained.

Minnesota assigns filing frequency based on average monthly tax liability. Monthly filers must file by the 20th of the following month, quarterly filers by April 20, July 20, October 20, and January 20, and annual filers by February 5. Late filings accrue a 5% penalty, with additional penalties every 30 days up to 15%, and interest at 8%. Returns are generally filed electronically, with paper exceptions permitted only in special circumstances.

FAQs

Does Minnesota tax shipping separately if it’s itemised?

No. Minnesota taxes delivery charges whenever the underlying item is taxable, even if shipping is separately stated.

Are resale certificates accepted in Minnesota?

Yes. Minnesota accepts exemption certificates using Form ST3, and purchasers must be properly registered to claim resale exemptions.

How long should I retain sales tax records?

Businesses should keep all sales tax records (receipts, invoices, exemption certificates, and shipping documents) for at least 3½ years, matching Minnesota’s audit window.

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12 May 2026

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The Myth of Marketplace Protection: What Sellers Misunderstand When marketplace facilitator laws first came into effect across US states following the 2018 South Dakota v. Wayfair decision, many sellers breathed a sigh of relief. If platforms like Amazon, Shopify, or Etsy were now legally required to collect and remit sales tax on behalf of third-party sellers, […]

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Navigating Sales Tax in Minnesota

200

State

Minnesota

Tax Rate Range

6.875% - 8.375%

Economic Nexus Threshold

$100,000 in retail sales or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6.875%

When should yourbusiness collect SalesTax in Minnesota?

A business must collect Minnesota sales tax once it establishes either physical or economic nexus. Once nexus is met, the business must register for a Minnesota Tax ID through MN e-Services and begin collecting tax on Minnesota-destination sales as required under destination-based sourcing rules.

Minnesota physical sales tax nexus.

A business establishes physical nexus in Minnesota when it has any presence or activity in the state that supports sales.

Sales tax physical nexus checklist for Minnesota

Which services are taxable in Minnesota?

Minnesota taxes tangible personal property, prewritten software, digital goods, and delivery charges when associated with taxable items, while exempting SaaS that does not involve a software transfer.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

Navigating Sales Tax in Minnesota

200

State

Minnesota

Tax Rate Range

6.875% - 8.375%

Economic Nexus Threshold

$100,000 in retail sales or 200 transactions

Filling Deadlines

20th of the month following the reporting period

Is SaaS Taxable?

Yes - subject to specifics

Base Tax Rate:

6.875%

When should yourbusiness collect SalesTax in Minnesota?

A business must collect Minnesota sales tax once it establishes either physical or economic nexus. Once nexus is met, the business must register for a Minnesota Tax ID through MN e-Services and begin collecting tax on Minnesota-destination sales as required under destination-based sourcing rules.

Minnesota physical sales tax nexus.

A business establishes physical nexus in Minnesota when it has any presence or activity in the state that supports sales.

Sales tax physical nexus checklist for Minnesota

Which services are taxable in Minnesota?

Minnesota taxes tangible personal property, prewritten software, digital goods, and delivery charges when associated with taxable items, while exempting SaaS that does not involve a software transfer.

FAQs

Related content.

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

Continuous Transaction Controls (CTC): How Real-Time VAT Reporting Works in 2026

Economic Nexus Explained (2026 Update): What European & UK Companies Need to Know After Their First Years Selling in the U.S.

6 Best US Sales Tax Compliance Solutions in 2026: An Honest Comparison

What is Peppol and How Does It Affect Your Business When e-Invoicing

Top Global VAT Solutions in 2026

9 Best e-Invoicing Compliance Solutions

e-Invoicing Requirements for B2B Sellers: What You Need to Have in Place

Quarterly VAT Return Dates: How to Stay Compliant All Year

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When should your
business collect Sales
Tax in Minnesota?

When should your
business collect Sales
Tax in Minnesota?