How to compute Minnesota Sales Tax for Minnesota, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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Clothing taxability prohibition
NEVER treat clothing as taxable in Minnesota -- ALL clothing is exempt.Section 10 -- Prohibitions
SaaS taxability prohibition
NEVER treat SaaS as taxable.Section 10 -- Prohibitions
No computation prohibition
NEVER compute any number.Section 10 -- Prohibitions
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Minnesota |
| State rate | 6.875% |
| Local rate range | 0% -- ~2% |
| Maximum combined rate | ~8.875% |
| Sourcing | Destination-based (SST) |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | Minnesota Department of Revenue (MNDOR) |
| Portal | https://www.revenue.state.mn.us |
| SST member | Yes (full member) |
| Clothing exemption | Yes -- ALL clothing exempt |
| Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 6.875% + local | |
| Clothing and footwear | EXEMPT | Minnesota exempts ALL clothing |
| Grocery food | EXEMPT | |
| Prepared food | TAXABLE | |
| SaaS | NOT TAXABLE | |
| Canned software (download) | TAXABLE | |
| Digital goods | TAXABLE | Specified digital products |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | Capital equipment refund program |
| Prescription drugs | EXEMPT | |
| OTC drugs | EXEMPT | |
| Resale | EXEMPT |
Informational only. Review by qualified professional required before filing.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Depends on
Other Minnesota computations in the OpenAccountants Tax Library.
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