Minnesota Sales Tax Calculator

If your business sells physical products or certain types of services, you will need to collect and pay sales tax. In Minnesota, the first step is visiting the revenue department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

Use our Sales Tax Calculator to determine your exact sales tax rate and total purchase amount. 

What Products and Services Are Subject to Sales Tax in Minnesota?

The sale, lease, or rental of tangible property is subject to sales tax in Minnesota. Admissions to amusement facilities and fitness clubs are also taxable, as are construction and installation labor. Groceries, clothing, and prescription drugs are exempt from sales tax. 

Minnesota Sales Tax Rate

The state sales tax rate in Minnesota is 6.875%.

Minnesota sales tax rates vary depending on which county and city you’re in. Check Minnesota Department of Revenue site for the exact rates.

How to Register for Minnesota Sales Tax

In Minnesota, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Visit the department of revenue’s online business registration form. 
2. Fill out the business registration form.
3. There is no fee to register your business for sales tax. 

Conclusion 

In Minnesota, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.