Minnesota Sales Tax Guide & Nexus Calculator (2026)

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

Criterion	Detail
State Rate	6.875%
Economic Nexus Threshold	$100,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Taxable
Typical Filing Frequency	Quarterly
SST Member	Yes
Registration Portal	mndor.state.mn.us

Economic Nexus

State / TerritorySelect a state…AL — AlabamaAK — AlaskaAZ — ArizonaAR — ArkansasCA — CaliforniaCO — ColoradoCT — ConnecticutDE — DelawareDC — Washington D.C.FL — FloridaGA — GeorgiaHI — HawaiiID — IdahoIL — IllinoisIN — IndianaIA — IowaKS — KansasKY — KentuckyLA — LouisianaME — MaineMD — MarylandMA — MassachusettsMI — MichiganMN — MinnesotaMS — MississippiMO — MissouriMT — MontanaNE — NebraskaNV — NevadaNH — New HampshireNJ — New JerseyNM — New MexicoNY — New YorkNC — North CarolinaND — North DakotaOH — OhioOK — OklahomaOR — OregonPA — PennsylvaniaPR — Puerto RicoRI — Rhode IslandSC — South CarolinaSD — South DakotaTN — TennesseeTX — TexasUT — UtahVT — VermontVA — VirginiaWA — WashingtonWV — West VirginiaWI — WisconsinWY — Wyoming

Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

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 eliminated its 200-transaction alternative threshold before 2025.

Tax Rate and Product Taxability

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

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

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

Minnesota is an SST member state. Register through the SSTRS at streamlinedsalestax.org for multi-state coverage including Minnesota.

For Minnesota-only registration:

1. Go to the Minnesota Department of Revenue portal: mndor.state.mn.us
2. Create an account and register for a Sales and Use Tax account
3. Provide EIN and business details
4. You will receive a Minnesota Tax ID number

Registration is free.

Foreign Sellers

Minnesota accepts foreign business registrations. A US EIN is required.

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

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.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist