How to compute mn-sales-tax for Minnesota, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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State sales tax rate
6.875%Minnesota Statutes § 297A.62
Local rate range
0% – ~2%Minnesota Statutes § 297A.99
Maximum combined state + local rate
~8.875%Minnesota Statutes § 297A.62; § 297A.99
Economic nexus — sales threshold
$100,000Minnesota Statutes § 297A.66, subd. 4
Economic nexus — transaction threshold
200 transactionsMinnesota Statutes § 297A.66, subd. 4
Sourcing rule
Destination-based (SST)Minnesota Statutes § 297A.668 (SST sourcing rules)
Streamlined Sales Tax (SST) member status
Yes (full member)Streamlined Sales and Use Tax Agreement; Minnesota Statutes § 297A.995
Clothing and footwear — taxability
EXEMPT — ALL clothing exemptMinnesota Statutes § 297A.67, subd. 8
Grocery food — taxability
EXEMPTMinnesota Statutes § 297A.67, subd. 2
Prepared food — taxability
TAXABLEMinnesota Statutes § 297A.61, subd. 31; § 297A.67, subd. 2
SaaS (Software as a Service) — taxability
NOT TAXABLEMinnesota Department of Revenue Sales Tax Fact Sheet 177E
Canned/prewritten software (download) — taxability
TAXABLEMinnesota Statutes § 297A.61, subd. 17; Minnesota Department of Revenue Sales Tax Fact Sheet 177
Digital goods (specified digital products) — taxability
TAXABLEMinnesota Statutes § 297A.61, subd. 48; Minnesota Department of Revenue Sales Tax Fact Sheet 177E
General tangible personal property (TPP) — taxability
TAXABLE at 6.875% + localMinnesota Statutes § 297A.62
Professional services — taxability
NOT TAXABLEMinnesota Statutes § 297A.61, subd. 3 (services generally not taxable unless enumerated)
Manufacturing equipment — taxability
EXEMPT (Capital equipment refund program)Minnesota Statutes § 297A.68, subd. 5
Prescription drugs — taxability
EXEMPTMinnesota Statutes § 297A.67, subd. 7
Over-the-counter (OTC) drugs — taxability
EXEMPTMinnesota Statutes § 297A.67, subd. 7
Resale — taxability
EXEMPTMinnesota Statutes § 297A.67, subd. 1; Minnesota Form ST3 (Certificate of Exemption)
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 |
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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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Other Minnesota computations in the OpenAccountants Tax Library.
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