Minnesota Sales Tax 2023 - 2024

The Minnesota state sales tax is 6.875 percent. Many cities and counties levy an additional local sales tax on top of this rate.

The Minnesota sales tax is a state consumption tax that applies to the sale of tangible personal property and certain services. Minnesota sales tax is 6.875 percent, and many counties and cities impose their own rates on top of this. There is also a 0.15-percent local use tax on taxable purchases made outside the city of Minneapolis and other localities that charge a local use tax (use tax). Some taxable products are also subject to special rates, such as those for vehicle rentals or waste management services. Minnesota sales tax is administered and collected by the Minnesota Department of Revenue and local governments. A variety of items are exempt from the sales tax.

Minnesota is a destination-based sales tax state, meaning that rates are determined by the buyer’s location when they make a purchase. This can be complicated for sellers who sell goods or services across multiple jurisdictions. For this reason, many choose to include sales taxes in their prices and mark them as “tax included” on receipts or invoices. The state has a variety of sales tax rate charts available to help determine the applicable sales tax for each sale. Businesses with a physical presence in Minnesota may also need to register for a sales tax permit.

Departments that charge sales tax to external customers must record the tax amount in their Enterprise Financial System billing module or point of sale system. Departments that qualify for the centralized sales tax reporting option should complete the Centralized Annual Sales Tax Returning Form (UM 1604) and submit it to Accounting Services by January 10.

How to File Minnesota Sales Tax?

There are a few ways to file Minnesota Sales Tax:

  • Online: The Minnesota Department of Revenue prefers this method. You can file electronically through their e-Services system: https://www.revenue.state.mn.us/sales-and-use-tax.
  • By Phone: You can file a return by touch-tone phone by calling 1-800-570-3329.
  • Paper Form: While not preferred, you can file a paper form. However, you’ll need to contact the department for a copy.

There’s no specific form used for filing, the e-Services system guides you through the process electronically.

  • Electronic filing and payment are mandatory for businesses with a sales and use tax liability of $10,000 or more in a fiscal year.
Minnesota Sales Tax Due Dates

Minnesota Sales Tax Due Dates

When you register for a sales tax permit, the state assigns you a filing frequency. This is typically based on your business size or sales volume, and some states require larger businesses to file more frequently. In Minnesota, returns are due on the 20th of the month following the taxable period. The return is due the next business day if the due date falls on a weekend or holiday.

Minnesota Sales Tax Exempt Items

Some goods and services are exempt from Minnesota sales tax. These include items such as baby food, clothing, and over-the-counter drugs. Additionally, the state’s sales and use tax is reduced during certain days of the year (known as “sales tax holidays”).

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button