Minnesota sales tax rates 2026: Calculator, nexus, and due dates

Minnesota sales tax rates by city and county

Minnesota’s 6.875% state rate is the baseline. Cities, counties, transit districts, and the seven-county metro area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington) layer additional taxes on top. Rates can vary block by block in some areas — for example, Hennepin County cities carry a 0.15% county tax plus the 1% metro area tax, while some cities add their own local rate as well.
Because Minnesota is a destination-based state, you charge the rate based on where the customer receives the product. The Minnesota Department of Revenue administers all local sales taxes centrally, so sellers file a single return covering both state and local taxes.

A note on special district taxes: The combined rates shown in this guide reflect general retail sales tax for ecommerce sellers — topping out at around 9.875% in St. Paul. Some Minnesota jurisdictions impose additional special-purpose taxes on specific transaction types such as admissions, entertainment, lodging, prepared food, and liquor — which can push effective rates as high as 13.375% in places like Onamia and Garrison for those specific categories. These special taxes generally do not apply to standard ecommerce retail transactions, but sellers in hospitality, entertainment, or food and beverage should check whether they apply to their products.

Major Minnesota cities and their 2026 combined rates:

Minnesota sales tax calculator

Can’t find your city? Use the TaxCloud Sales Tax Calculator to look up any Minnesota ZIP code.

The rates in this calculator are powered by the same real-time engine used within our platform. Minnesota’s local rates are complex — metro area taxes, county transit taxes, city taxes, and special district taxes can all stack — and rates change quarterly. Final precision depends on the exact street address and the specific taxability (TIC) of your product. To move from estimates to automated, rooftop-level accuracy, start your 30-day free trial and see the engine in action.

Minnesota nexus thresholds

Remote sellers and businesses with a physical presence in Minnesota are subject to nexus laws. You are required to register and collect sales tax if you trigger “nexus” through a physical presence in the state or by exceeding the economic thresholds as a remote seller.

Minnesota economic nexus

You will trigger Minnesota economic nexus if you exceed either of the following thresholds during any 12-month period:

• Sales threshold: $100,000 in gross retail sales shipped to Minnesota addresses.
• Transaction threshold: 200 or more separate retail transactions delivered into Minnesota.

Minnesota uses an “or” standard — exceeding either threshold triggers nexus. Marketplace-facilitated sales count toward the marketplace facilitator’s threshold. Once nexus is triggered, the seller must register with the Minnesota Department of Revenue and begin collecting tax.

Minnesota physical nexus

You have physical nexus (and must register from dollar one) if you have:

• Inventory: Storing goods in a warehouse, 3PL, or Amazon FBA fulfillment center in Minnesota.
• Personnel: Employees, contractors, sales reps, or agents conducting business in Minnesota.
• Property: Maintaining an office, storefront, distribution center, or other place of business in Minnesota.
• Affiliates/Click-through: Having an agreement to reward a person in Minnesota for referring purchasers through an internet link, where cumulative gross receipts from such referrals exceed $10,000 during the preceding four quarters.

Minnesota sales tax permit registration

Once you trigger nexus, you must register with the Minnesota Department of Revenue before you can legally collect sales tax.

Operating without a permit after crossing the threshold exposes you to back taxes, penalties, and interest from the date nexus was established — not the date you registered.

1. Gather your information. You’ll need your FEIN, business structure details, estimated sales, and bank account information.
2. Submit your application. Register online through the Minnesota Tax Portal or through the Streamlined Sales Tax Registration System (because Minnesota is an SST member state). There is no fee for obtaining a sales tax permit.
3. Note your effective date. Minnesota expects registration promptly upon crossing either the $100,000 sales or 200-transaction threshold. If there’s a gap between crossing the threshold and registering, you may owe back taxes for that period.

If you have questions about your Minnesota registration or compliance history, TaxCloud’s U.S.-based support team typically responds within 2 hours and can review your setup directly.

Minnesota sales tax calculation rules

Minnesota’s calculation rules require careful attention to local rates. The 6.875% state rate applies everywhere, but local taxes vary significantly by address — especially in the seven-county metro area, where metro area, county, and city taxes can stack. The state administers all local taxes centrally, so sellers file a single return.

What is taxable in Minnesota?

Taxability in Minnesota is determined by how a product is classified under state law. Below is a high-level summary of how major categories are generally treated for 2026:

• Tangible personal property: Most physical goods — such as furniture, electronics, and standard retail items — are subject to the 6.875% state sales tax plus applicable local taxes unless a specific exemption applies. Shipping and handling charges are taxable when the underlying item is taxable. If the item is exempt, shipping is also exempt.
• SaaS, software, and digital products: SaaS (subscriptions to online-hosted software) is not taxable in Minnesota. Prewritten computer software is taxable whether delivered on a disk or by download. Custom software is not taxable. Specified digital products — including digital audio works, digital audiovisual works, and digital books — are taxable when sold to end users. Digital newspapers and student digital textbooks are exempt.
• Food & groceries: Minnesota exempts most unprepared food and food ingredients from sales tax. Prepared food (food sold by restaurants, food trucks, or any seller providing eating utensils) is taxable. Candy and soft drinks are taxable.
• Clothing: Most clothing is exempt from Minnesota sales tax. Exceptions include fur clothing, accessories (jewelry, handbags, watches), sports and recreational equipment, and protective equipment.

What is tax exempt in Minnesota?

Below is a high-level summary of items that are generally tax-exempt in Minnesota:

• Essential exemptions: Minnesota provides specific exemptions for most clothing and footwear, prescription drugs, over-the-counter drugs, most unprepared food and food ingredients, and baby products (car seats, cribs, strollers, diapers).
• Additional exemptions: Sales for resale (with a valid Form ST3 exemption certificate), manufacturing machinery and equipment, capital equipment used in manufacturing or processing, and purchases by qualifying government agencies, schools, religious organizations, and nonprofit charitable organizations.

Minnesota sales tax return due dates and filing frequency

In Minnesota, monthly and quarterly sales tax returns are due on the 20th of the month following the reporting period. Annual returns are due February 5 of the following year. The Minnesota Department of Revenue assigns filing frequency based on your sales tax liability.

Critical 2026 compliance notes:

• Clothing is exempt: Minnesota is one of a handful of states that exempts most general-purpose clothing from sales tax. Sellers must correctly distinguish between exempt clothing and taxable items like fur clothing, sports equipment, and accessories.
• Metro area taxes add up quickly: Sales delivered to the seven-county Twin Cities metro area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington) carry an additional 1% metro area tax — and many cities within the metro add their own local rates on top.
• Local rate changes occur quarterly: The Minnesota Department of Revenue publishes updated rate tables quarterly. Sellers must keep their systems current.
• Shipping is taxable when the item is taxable: When the product being shipped is taxable, shipping and handling charges are also taxable. If the product is exempt, shipping is also exempt.
• Zero-return requirement: If you are registered but had $0 in sales this period, you must still file.
• Weekend/holiday rule: If the 20th falls on a weekend or state holiday, your return is due the next business day.
• Electronic filing threshold: If your sales and use tax liability is $10,000 or more during the state’s fiscal year (July 1 – June 30), you must pay all taxes electronically starting the next calendar year.

Minnesota and the Streamlined Sales Tax (SST) program

Yes, Minnesota is a full member state of the Streamlined Sales Tax (SST) program. Minnesota has been an SST member since October 1, 2005.

Because TaxCloud is an SST Certified Service Provider, we can handle your registration and filing at no cost to your business in Minnesota and all other SST-member states.

See how our SST status can eliminate your filing fees.

The latest Minnesota sales tax changes

We track Minnesota’s shifting sales tax landscape so you don’t have to.

Here are the most relevant updates for 2026:

• Quarterly local rate changes continue: For Q2 2026 (April 1), Faribault County added a 0.5% transit sales and use tax, and the city of Scanlon’s 0.5% sales and use tax ended. Sellers with customers in these jurisdictions should ensure their systems reflect the updated rates each quarter. Check the Minnesota Department of Revenue’s Local Sales Tax Information page for the latest rate tables.