Minnesota sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.
Minnesota: rate, nexus & administration.
- State rate
- 6.875%
- Local rates
- Local and metro-area taxes add up to 3% — St. Paul’s combined rate is 9.875%
- Economic nexus
- $100,000 or 200 transactions · effective October 1, 2018Measured on the prior 12 months; the $100,000-or-200 form took effect October 1, 2019.Controlling authority: Minn. Stat. § 297A.66, subd. 1(c) / subd. 4a ↗
- Marketplace facilitator
- Yes — effective October 1, 2018
- Streamlined (SST)
- Full member
- Administered by
- Minnesota Department of Revenue ↗
What to watch in Minnesota
- Clothing and groceries are exempt — a base quirk that matters for apparel and food sellers.
- A $0.50 retail delivery fee applies to deliveries of $100 or more (effective July 1, 2024).
- Digital products are broadly taxable.
Rates, thresholds, and taxability change mid-year — verify against the Minnesota Department of Revenue before advising. In L3i, every determination is cited to the controlling authority.
The Minnesota voluntary disclosure agreement.
Behind in Minnesota? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the Minnesota Department of Revenue ↗ · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
Minnesota, in brief.
What is the economic nexus threshold in Minnesota?
$100,000 or 200 transactions, effective October 1, 2018. Measured on the prior 12 months; the $100,000-or-200 form took effect October 1, 2019. Once the threshold is crossed, remote sellers must register with the Minnesota Department of Revenue and begin collecting.
What is the sales tax rate in Minnesota?
The state sales tax rate is 6.875%. Local and metro-area taxes add up to 3% — St. Paul’s combined rate is 9.875%.
Do marketplace facilitators collect Minnesota sales tax?
Yes — marketplace facilitators have been required to collect since October 1, 2018. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for Minnesota sales tax?
Register with the Minnesota Department of Revenue before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 or 200 transactions). As a Streamlined Sales Tax member state, Minnesota also accepts central registration through the SST system, which covers all member states in one application.
Does Minnesota offer a voluntary disclosure agreement (VDA)?
Yes — the Minnesota Department of Revenue administers a voluntary disclosure program with a lookback of 36 months (3 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs Minnesota determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Minnesota question starts further ahead.
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