This blog was last updated on December 10, 2025

Minnesota imposes a statewide sales and use tax of 8.75%. The state allows local jurisdictions to levy an additional sales tax.

What’s Taxable in Minnesota?

Minnesota sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.

Examples of taxable items include:

• Candy & soft drinks
• Certain computer software
• Specific digital products
• Grooming & hygiene products
• Select installation labor

Sales Tax Nexus in Minnesota

A seller is liable to collect and remit Minnesota sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence. Meeting these thresholds means you must register and comply with Minnesota sales tax laws.

Physical Nexus

Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Minnesota.

Economic Nexus

Minnesota enforces economic nexus for remote sellers. If your business has:

• Over $100,000 in sales, or
• More than 200 transactions during the previous calendar year;

you may be required to register for and collect sales tax in Minnesota.

Minnesota Sales Tax Exemptions

Certain sales in Minnesota are considered generally exempt from the sales and use tax requirements.

Exempt Products and Services

• Most services (unless Minnesota statutes specify otherwise)
• Food and food ingredients
• Specific Agricultural items
• Select medical equipment
• Certain clothing

Entity or Use Based Exemptions

Additionally, Minnesota exempts sales to certain entities from the sales/use tax, including the following:

• Certain wholesalers
• Retailers selling for resale
• Certain Industrial processors
• Nonprofit Organizations
• Government

How to Claim Sales Tax Exemption in Minnesota

To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST3 – Certificate of Exemption as the most commonly used form.

Minnesota Filing and Remittance Requirements

Minnesota offers electronic filing options for remitting sales and use tax, including:

• E-filing through MN e-Services
• Simplified Electronic Return (SER) for SST participants and their affiliates

You must generally pay all Minnesota business taxes electronically if you paid more than $10,000 of any one business tax during the previous fiscal year (July 1 – June 30).

If you’re required to pay business taxes electronically for one year, you must continue to do so for all future years. Minnesota will send a notice the first year you’re required to pay electronically.

Frequently Asked Questions

Is Minnesota part of the Streamlines Sales Tax (SST) initiative?

Yes, Minnesota is part of the SST initiative, a multi-state agreement designed to simplify and standardize sales tax rules.

Does Minnesota have sales tax holidays?

Currently, there are no sales tax holidays in Minnesota.

Are there any special point of sale fees in Minnesota?

Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Minnesota imposes the following point of sale fees:

• E-911
• Paint Care Fee
• Retail Delivery Fee

Does Minnesota apply sales tax to shipping charges?

Generally, Minnesota taxes delivery charges if the underlying item is taxable.

For sourcing sales tax, is Minnesota origin or destination based?

Minnesota is a destination-based state, meaning sales tax is calculated based on the buyer’s location

Can I use the Simplified Electronic Return (SER) in Minnesota if I’m not in the SST Model 1 program?

Yes. Minnesota accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.

How do I register for a Minnesota Sales Tax License?

Minnesota businesses or individuals selling tangible personal property or certain services to Minnesota consumers may need to register to collect sales tax when meeting qualifying requirements. More information may be found here: Starting a Business or MN e-Services