Minnesota Sales Tax Basics: Rate, Nexus, and Filing
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Full transcript
Overview
For businesses in Minnesota, the sales tax setup is easier to manage when you know the main pieces. Here's a clear overview.
Who administers it
Minnesota sales tax is administered by the Minnesota Department of Revenue.
State and local rates
The WGA page lists Minnesota's statewide base sales tax rate as 6.875%. Local rates can stack on top and are generally based on the delivery address.
Economic nexus
For sales tax, nexus means a business may have enough activity or connection in the state that its responsibilities should be reviewed. For remote sellers, the WGA page lists Minnesota's economic nexus threshold as $100,000 in sales or 200 transactions.
Filing frequency
The WGA page notes that filing may be monthly, quarterly, or annually, depending on liability. The key is to keep collected tax and the filing schedule aligned in the books.
What to watch for
One Minnesota watch-out: clothing is exempt, which materially changes the calculation for apparel retailers.
How we help
White Glove Accounting helps keep the books organized, less tax activity and filing records are easier to review.
Minnesota sales tax at a glance
- Administered by
- Minnesota Department of Revenue
- Statewide base rate
- 6.875%, with local rates on top
- Economic nexus
- $100,000 in sales or 200 transactions
- Filing frequency
- Monthly, quarterly, or annually by liability
Watch for: Clothing is exempt, which materially changes the calculation for apparel retailers.
Rates and thresholds as of August 2026. They change, so verify anything time-sensitive with the Minnesota Department of Revenue.
Read the Minnesota bookkeeping guideWant your Minnesota sales tax kept current?
We track taxable sales, reconcile collected tax, and prepare and file Minnesota sales tax returns on the schedule the Minnesota Department of Revenue assigns you. Tell us about your business and we'll send a written scope and price.
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White Glove Accounting is a bookkeeping firm — not a licensed CPA firm, public accountancy firm, or registered tax preparer. We keep your books clean so your CPA or tax preparer can do their job.