Minnesota Sales Tax Guide for eCommerce Businesses
Minnesota Sales Tax Guide for eCommerce Businesses
Sales Tax eBook
Contact Us
Minnesota's Sales Tax Authority
State Phone Information
651-296-6181
Member of the Streamlined Sales Tax Governing Board?
Tax percent range for remote sellers in Minnesota
6.875% to 8.375%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Minnesota?
If you have nexus in Minnesota you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Minnesota charge sales tax on shipping?
If the products for shipping are taxable then the seller must charge sales tax on shipping.
If the items for shipping are not taxable then the seller is not obligated to charge sales tax on shipping.
Do you have physical nexus in Minnesota?
A seller has physical nexus in Minnesota if they have any of the following:
Have an office; distribution, sales, or sample room location; warehouse or other place of business in the state.
Either directly or by a subsidiary have a representative, agent, salesperson, canvasser, or solicitor in Minnesota, on either a permanent or temporary basis, who operates under the authority of the retailer or its subsidiary for any purpose, such as repairing, selling, delivering, installing, soliciting orders for the retailer’s goods or services, or leasing tangible items in the state.
Deliver items into Minnesota in their own vehicles.
Provide taxable services in the state.
Have entered into an agreement with a solicitor for the referral of Minnesota customers for a commission and with gross receipts over 12 months of at least $10,000.
Do you have economic nexus in Minnesota?
Minnesota's Economic Nexus Sales Threshold
$100,000
Economic Transactions Threshold
Or 200 transactions
Economic Nexus Evaluation Period
Previous 12 Months
Economics Nexus Effective Date
October 1, 2018
What types of sales are included in Minnesota's Economic Nexus Sales Threshold?
Retail sales and marketplace sales made by individual sellers are included.
How does Minnesota treat exempt transactions when calculating economic nexus?
Exempt sales and sales to tax-exempt entities are included in the threshold. Exempt services and sales for resale are not included in the threshold.
Does Minnesota have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Minnesota sales tax returns are almost always due the 20th of the month following the reporting period. (The exception is the annual sales tax return, which is due February 5th the year following the taxable period.) If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
How often are Sales Tax Returns filed?
Monthly, Quarterly or Annually
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - Online filing, and electronic payments are required if you have a sales and use tax liability of $10,000 or more in the state’s fiscal year (July 1 June 30).
Phone - Call 1-800- 570-3329 to file by phone
eSenshi-File – Let us fight your tax battle, we always win! Check out our sales tax services here.
Let us fight your sales tax battles
Get a complete solution to sales tax from audits to filings, get complete tax compliance security with eSenshi