What is the sales tax in Minnesota?
Combined rate, the threshold that makes you register, and the rules that decide what you charge.
The Minnesota state sales tax rate is 6.875%. Local rates average 1.15%, for a combined average of 8.025%, and reach 9.88% in the highest jurisdictions. A remote seller has to register once sales into Minnesota pass $100,000 in sales or 200 separate transactions into the state over the previous 12 months. Charge the rate at the buyer’s address.
- State rate
- 6.875%
- Average local rate
- 1.15%
- Combined average
- 8.025%
- Highest in the state
- 9.88%
Do you have to register?
Economic nexus threshold
$100,000 or 200 transactions
Measured over the previous 12 months. Either test triggers registration on its own, so a high volume of low-price orders can cross the line before revenue does. Physical presence — staff, an office, or stock sitting in a 3PL in the state — creates the obligation immediately, before any threshold applies.
What you charge, and on what
- Which address sets the rate Charge the rate at the buyer’s address.
- Is shipping taxed Taxable. Delivery charges on taxable goods are taxable.
- Clothing Exempt. Clothing is exempt with no price cap. Fur, sports gear, and protective equipment are still taxed.
- Groceries Exempt
- Marketplace sales Amazon, Walmart, Etsy, and eBay collect and remit on the orders they process. Sales through your own store stay yours to collect on.
- Registering Covered by the Streamlined Sales Tax registration, so you can register here and in the other member states in one application.
Worth knowing about Minnesota
- One of four states that exempts clothing outright, which matters if you sell apparel.
- A retail delivery fee applies to certain orders over $100 on top of sales tax.
Minnesota sales tax questions
What is the sales tax rate in Minnesota?
The state rate is 6.875%. Local jurisdictions add an average of 1.15% on top, which puts the typical combined rate at 8.025% and the highest at 9.88%. Because the rate follows the address, the figure you charge depends on where the order is going.
When does a remote seller have to register in Minnesota?
Once sales into the state pass $100,000 in sales or 200 separate transactions into the state over the previous 12 months. Either test triggers registration on its own, so a high volume of small orders can create the obligation before revenue does. Physical presence, including inventory held at a 3PL in the state, creates the obligation immediately, before any threshold applies.
Is shipping taxable in Minnesota?
Taxable. Delivery charges on taxable goods are taxable.
Is clothing taxed in Minnesota?
Exempt. Clothing is exempt with no price cap. Fur, sports gear, and protective equipment are still taxed.
Where the authoritative number is
Rates and thresholds change, and the Minnesota Department of Revenue sets them. Check there before you register or file. This is a Streamlined Sales Tax member state, so you can also register here and in the other member states through one free application.
Other states that treat apparel differently
Know before you cross the line
The threshold above is easy to read and hard to track, because it counts sales from your store, your marketplaces, and your wholesale accounts together. Endless keeps those on one source of truth, so what you have sold into Minnesota this year is a number you already have rather than one you assemble after the fact.
This page is a reference, not tax advice. Confirm registration and filing decisions with the Minnesota Department of Revenue or a tax professional.