Minnesota Sales Tax Rate 2026: 6.875% State, 8.14% Avg. Combined
Minnesota’s state sales tax rate is 6.875%. Cities, counties and special districts add their own rates on top, so the total depends on where the order is delivered. The average combined state and local rate is 8.14%.
| Minnesota sales tax (2026) | Rate |
|---|---|
| State rate | 6.875% |
| Average local rate | 1.26% |
| Average combined rate | 8.14% |
Rates as of July 1, 2026, from the Tax Foundation. The exact rate on an order depends on the delivery address. Look up the exact rate for any Minnesota ZIP code with our sales tax calculator.
Minnesota has a 6.875% state rate and taxes SaaS and digital goods broadly. Local transit and county taxes add on top in major metro areas. Minnesota is an SST member state, and its Department of Revenue has detailed guidance on digital goods taxability.
Quick Reference
Section titled “Quick Reference”| Criterion | Detail |
|---|---|
| State Rate | 6.875% |
| Economic Nexus Threshold | $100,000 gross sales OR 200 transactions (rolling 12 months) |
| Transaction Threshold | 200 transactions (either test triggers nexus) |
| Digital Goods / SaaS | Taxable |
| Typical Filing Frequency | Quarterly |
| SST Member | Yes |
| Registration Portal | mndor.state.mn.us |
Economic Nexus
Section titled “Economic Nexus”For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026
Minnesota’s economic nexus threshold is $100,000 in gross sales into Minnesota in the current or prior calendar year. Once exceeded, registration and collection are required.
Marketplace-facilitated sales count toward the threshold. Minnesota also counts transactions: 200 or more separate sales into Minnesota create nexus even if your revenue is under $100,000. For low-priced products, that’s usually the threshold you reach first.
Tax Rate and Product Taxability
Section titled “Tax Rate and Product Taxability”Minnesota sales tax calculator
Every rate that applies at a US ZIP code, worked out on your order.
Sales tax · Minnesota 55401
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Collecting sales tax in Minnesota and beyond?
GoodVat tracks your economic nexus in every state, registers you, charges the right rate on every order and files your returns.
Calculation only, not legal or tax advice. Verify with the state Department of Revenue before you file. State averages: Tax Foundation, July 1, 2026.
Minnesota’s state rate is 6.875%. Local jurisdictions add taxes:
- State: 6.875%
- County (some counties): up to 0.5%
- Transit/special districts: 0.25%–0.5% in metro areas
- Combined in Minneapolis: approximately 8.025%
- Combined in St. Paul: approximately 8.875%
Minnesota uses destination-based sourcing for remote sellers.
Product Categories
Section titled “Product Categories”Taxable: Tangible personal property, digital goods (including SaaS), most retail goods.
Exempt: Prescription drugs, most groceries, clothing (Minnesota exempts most clothing from sales tax — a significant exemption), farm machinery and inputs, qualifying medical equipment.
Clothing exemption: Minnesota exempts most clothing items from sales tax. This includes everyday apparel for children and adults. Fur clothing, athletic protective equipment, and similar items may not qualify. If you sell clothing into Minnesota, correct product classification significantly affects your collection.
Digital Goods and SaaS
Section titled “Digital Goods and SaaS”Minnesota taxes SaaS and digital goods. The Minnesota Department of Revenue has issued extensive guidance on digital product taxability:
- SaaS — taxable; Minnesota explicitly taxes “computer software delivered electronically” and remotely accessed software
- Downloaded software — taxable
- Digital content (music, ebooks, streaming) — taxable under Minnesota’s digital audio/visual works framework
- Online subscriptions for digital products — taxable
- Video streaming services — taxable
Minnesota is one of the more comprehensive digital goods taxability states and has invested in clear definitional guidance. If you sell any SaaS, digital subscriptions, or digital content into Minnesota and cross $100,000, you have a clear collection obligation.
Registration
Section titled “Registration”Minnesota is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including Minnesota.
For Minnesota-only registration:
- Go to the Minnesota Department of Revenue portal: mndor.state.mn.us
- Create an account and register for a Sales and Use Tax account
- Provide EIN and business details
- You will receive a Minnesota Tax ID number
Registration is free.
Foreign Sellers
Section titled “Foreign Sellers”Minnesota accepts foreign business registrations. A US EIN is required.
Filing Frequency and Deadlines
Section titled “Filing Frequency and Deadlines”| Annual Tax Liability | Filing Frequency |
|---|---|
| Less than $500 | Annual |
| $500–$10,000 | Quarterly |
| More than $10,000 | Monthly |
Quarterly due dates: Returns are due on the 20th of the month following the quarter end (April 20, July 20, October 20, January 20).
Returns are filed through the MN DOR e-Services portal.
Compliance Notes
Section titled “Compliance Notes”Clothing exemption is meaningful: Minnesota’s clothing exemption is unusually broad. Most apparel is exempt statewide. If your catalog includes clothing, ensure your tax engine reflects this exemption for Minnesota.
Metro area transit taxes: The Minneapolis-St. Paul metro area has additional transit taxes that push combined rates above 8%. Destination-based rate lookups must account for these.
Digital sellers: Minnesota taxes SaaS comprehensively. No exemption for digital businesses.
SST member: Use the SSTRS for multi-state registration covering Minnesota.
Amazon FBA: Amazon operates in Minnesota. Verify whether FBA inventory creates physical nexus for your account.
Minnesota Sales Tax FAQ
Section titled “Minnesota Sales Tax FAQ”What is the sales tax rate in Minnesota?
Section titled “What is the sales tax rate in Minnesota?”Minnesota’s state sales tax rate is 6.875%. Local taxes are added on top, and the average combined state and local rate is 8.14% (Tax Foundation, July 2026). The exact rate depends on the delivery address.
What is the Minnesota economic nexus threshold?
Section titled “What is the Minnesota economic nexus threshold?”Remote sellers must register and collect Minnesota sales tax once they make more than $100,000 in gross sales into the state (rolling 12 months). Making 200 or more separate sales there also triggers nexus, even below $100,000.
Is SaaS taxable in Minnesota?
Section titled “Is SaaS taxable in Minnesota?”Yes. Minnesota generally taxes SaaS and digital goods. See the Digital Goods and SaaS section above for the details.
How often do you file sales tax in Minnesota?
Section titled “How often do you file sales tax in Minnesota?”Most sellers file quarterly. Minnesota assigns your filing frequency when you register, based on how much tax you collect, so lower-volume sellers may file less often.