Minnesota Sales Tax

Minnesota Sales Tax Guide (2026)

6.875% at state level, stacked local taxes that push the Twin Cities past 9%, and a flat 50-cent delivery fee that runs on a different base from the tax itself.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: MN Revenue & Minn. Stat.
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Quick Facts

Sales Tax at a Glance

State rate
6.875% [1]
Combined rate range
6.875%–9.875% [2]
St. Paul rate
9.875% [2]
Minneapolis rate
9.025% [2]
Metro housing tax
0.25% [3]
Metro transportation tax
0.75% [4]
Retail Delivery Fee
50¢ over $100 [5]
Clothing
Exempt [6]
Economic nexus
$100k OR 200 sales [7]
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A flat 50-cent fee that is not a sales tax and does not share its base

Since 1 July 2024 a qualifying delivery of $100 or more carries a flat 50-cent Retail Delivery Fee, imposed on the retailer under a separate chapter of Minnesota law.[5]

50 cents, once per transaction $100 threshold, measured before tax Clothing counts toward the threshold Food, drugs and downloads do not Curbside and in-store pickup excluded Label it Road Improvement and Food Delivery Fee
Two retailer-level outs exist. A retailer with under $1,000,000 of Minnesota retail sales in the prior calendar year is not liable, and a marketplace provider is not liable for a retailer it facilitates under $100,000 for annually. Both are retested every year.[5]
Estimate

Minnesota sales tax calculator

Minnesota · state rate 6.875%
Metro, county, transit and city taxes stack independently.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only, and it does not add the 50-cent Retail Delivery Fee, which is a separate charge rather than a rate.[5] Talk to CrownGlobe about delivery fee configuration.

Rates & Registration

Minnesota Sales Tax Rates, Nexus & the stacked metro taxes

How a Minneapolis rate is built

State rate6.875%
Metro area housing tax0.25%
Metro area transportation tax0.75%
County sales tax0.15%
County transit plus city tax1.00%

The two metro taxes are separate levies with different statutory bases even though the Department prints them as a single one percent column, and both apply throughout the seven-county Twin Cities region.[3]

Who must register

Either trigger applies: economic nexus at more than $100,000 in retail sales or 200 or more retail sales shipped to Minnesota destinations in the prior twelve months, or any physical presence. Both prongs remain in force.[7]

Address-level sourcing is unavoidable: because independent taxes stack, a five-digit postcode is not enough to resolve the correct rate. Sourcing must reach the street address or nine-digit postcode.[2]

Compliance

Sales Tax Registration and Filing

Register for a Minnesota Tax ID before making taxable sales.

How to register

  • Confirm nexus→
  • Minnesota Tax ID registration→
  • Sales tax account opened→
  • Configure delivery fee logic→
  • File electronically

The Retail Delivery Fee is reported separately from sales tax, so a business that crosses the $1,000,000 sales threshold needs its reporting set up before the next calendar year begins.[5]

Filing & due dates

FrequencyAverage monthly liabilityDue
MonthlyOver $50020th of next month
Quarterly$100 to $50020th after quarter
AnnualUnder $100Feb 5

Late payment costs 5% of the unpaid tax for the first 30 days plus 5% for each further 30 days up to 15%, with an additional 5% late-filing penalty and a separate 5% penalty for not paying electronically when required.[8]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Minnesota taxes goods, prewritten software and specified digital products, exempts clothing and groceries outright, and leaves most professional services outside the base.[1]

Generally taxable

  • Tangible retail goodsMinn. Stat. 297A.61
  • Prewritten computer softwareMinn. Stat. 297A.61 subd. 17
  • Specified digital productsMinn. Stat. 297A.61 subds. 50–55
  • Candy, soft drinks & prepared foodCarved out of the food exemption
  • Clothing accessories & sports equipmentMinn. Stat. 297A.67 subd. 8
  • Lodging, parking, laundry & building cleaningEnumerated services

Generally exempt

  • Clothing for general useNo price cap
  • Food & food ingredientsMinn. Stat. 297A.67 subd. 2
  • Drugs & durable medical equipmentMinn. Stat. 297A.67 subd. 7
  • Custom computer softwareMinn. R. 8130.9910
  • Cloth & disposable diapersMinn. Stat. 297A.67 subd. 8
  • Sales for resaleWith exemption certificate
Worth flagging: clothing is exempt from sales tax but still counts toward the $100 Retail Delivery Fee threshold. A $100 apparel order generates no sales tax at all and still owes the 50-cent fee, so an engine that keys the fee off taxable sales will under-collect on every apparel delivery.[5]
Reference

Glossary of key terms

Metro area housing tax
A 0.25% regional sales tax applying across the seven-county Twin Cities region since October 2023.
Metro area transportation tax
A separate 0.75% regional tax applying across the same region, with its own statutory base.
Retail Delivery Fee
A flat 50-cent charge on qualifying deliveries of $100 or more, imposed on the retailer under a separate chapter.
Threshold amount
The $100 measured before state and local sales tax and excluding items the fee does not reach.
Small seller exception
Minnesota’s safe harbour from registration until $100,000 in sales or 200 transactions in the prior twelve months.
Local tax stacking
Minnesota’s practice of layering regional, county, transit and city taxes independently on one transaction.
FAQ

Sales Tax FAQs

6.875% at state level. Local taxes stack on top, so combined rates run from 6.875% where no local tax applies to 9.875% in St. Paul, with Minneapolis at 9.025%.

A flat 50 cents charged once per transaction on qualifying deliveries of $100 or more, in force since 1 July 2024. It is imposed on the retailer, who may pass it on, and when passed on it must appear separately on the receipt labelled Road Improvement and Food Delivery Fee.

No. Clothing for general use is exempt with no price cap. Accessories such as jewellery, handbags and watches, sports and recreational equipment, protective equipment and qualifying fur clothing are all taxable.

Yes. Clothing is written into the definition of retail delivery, so an apparel order counts toward the $100 threshold and triggers the fee even though no sales tax is due on it.

More than $100,000 in retail sales or 200 or more retail sales shipped to Minnesota destinations in the prior twelve months. Both prongs remain in force, and sales for resale are excluded from the calculation.

A retailer with less than $1,000,000 in Minnesota retail sales in the previous calendar year, and a marketplace provider facilitating less than $100,000 in sales annually for a given retailer. Both tests are reassessed each year.

Verification

Sources & methodology

  1. MN Revenue – Sales & Use Tax Business Guide
  2. MN Revenue – Local Sales & Use Tax Rate Guide
  3. Minn. Stat. 297A.9925 – Metropolitan Region Sales Tax
  4. Minn. Stat. 297A.9915 – Regional Transportation Tax
  5. MN Revenue – Retail Delivery Fee
  6. Minn. Stat. 297A.67 – General Exemptions
  7. Minn. Stat. 297A.66 – Nexus & Small Seller Exception
  8. Minn. Stat. 289A.60 – Civil Penalties
  9. Minn. Stat. 297A.62 – Imposition & Rate
  10. Minnesota Statutes Chapter 168E – Retail Delivery Fee
  11. MN Revenue – Twin Cities Area Rate Guide
  12. MN Revenue – Remote Seller FAQs
  13. MN Revenue – Clothing
  14. MN Revenue – Local Tax Chart Q4 2026
Methodology: Every rate is taken from the Minnesota Department of Revenue’s current quarterly rate guides or the Minnesota Statutes directly, and every combined rate on this page was recomputed from its component levies rather than copied from a summary column.
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