Minnesota

Sales Tax Rules

6.875%

State Rate

8.375%

Max Combined

Exempt

SaaS

$100k

Nexus Threshold

Full Tax Details

State Sales Tax Rate6.875%

Max Combined Rate8.375%

Economic Nexus (Sales)$100,000

Economic Nexus (Transactions)200 transactions

SaaS TaxableNo

Digital Goods TaxableYes

Groceries ExemptYes

Clothing ExemptYes

Filing FrequencyMonthly, Quarterly, or Annual

Online FilingAvailable

SaaS Tax Details

SaaS is generally exempt as a service; however, prewritten software is taxable.

Grocery Details

Food and food ingredients are exempt; prepared food is taxable.

Official Source

Minnesota Department of Revenue

Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.