Minnesota Sales and Use Tax
How to compute Minnesota Sales and Use Tax for Minnesota, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
Key facts — Minnesota, 2025
| 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 |
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Use this skill whenever asked about Minnesota sales and use tax. Trigger on phrases like "Minnesota sales tax", "MN sales tax", "M.S. 297A", "Minnesota DOR". NOTE -- Minnesota EXEMPTS clothing. ALWAYS load us-sales-tax first.
Full guide
Minnesota Sales and Use Tax Skill v2.0
Section 1 -- 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 |
Section 3 -- 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 |
Section 10 -- Prohibitions
- NEVER treat clothing as taxable in Minnesota -- ALL clothing is exempt.
- NEVER treat SaaS as taxable.
- NEVER compute any number.
Disclaimer
Informational only. Review by qualified professional required before filing.
Disclaimer
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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More Minnesota tax skills
Other Minnesota computations in the OpenAccountants library.