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Minnesota Sales Tax Guide for Small Businesses

Everything you need to know about sales tax in Minnesota — rates, deadlines, exemptions, and how to stay compliant without the headache.

Last updated March 2026

Quick Facts

State Rate

6.88%

Avg. Combined

7.47%

Filing Frequency

Monthly, Quarterly, or Annual

Vendor Discount

No

Home Rule

No

Minnesota Sales Tax Rates

Minnesota's state sales tax rate is 6.88%. Cities and counties can add local taxes on top. The average combined rate across Minnesota is 7.47%.

The highest combined rate in the state can reach up to 8.88% in some jurisdictions.

Filing Deadlines & Frequency

Filing Frequency

Monthly, Quarterly, or Annual — assigned by MN DOR based on tax liability

Due Dates

20th of the month after the reporting period

File Online

Minnesota Department of Revenue — e-Services: https://www.revenue.state.mn.us/

What's Taxable for Restaurants & Food Businesses

Prepared Food

Yes — prepared food and restaurant meals are taxable at the full 7.47% combined rate.

Grocery Food

Exempt from sales tax. Grocery food is exempt. Prepared food, candy, and soft drinks are taxable.

Alcohol

Subject to sales tax plus a 2.5% gross receipts tax on liquor sales at on-sale establishments

Vendor Discount

Minnesota does not currently offer a vendor discount for timely filing.

Penalties for Late Filing

Late Filing Penalty

5% if up to 30 days late, 10% if 31-60 days late, additional penalties after

Interest

Adjusted rate set by MN DOR

Miss a deadline and Minnesotastarts charging penalties and interest immediately. That adds up fast on a busy restaurant's tax bill.

TaxAside's On-Time Guarantee covers up to $5,000 in penalties if we ever file late.

Calculate Your Minnesota Sales Tax

Minnesota Sales Tax Calculator
$
State tax (6.88%)$0.00
Est. local tax (0.60%)$0.00

Total tax (7.47%)$0.00
Total with tax$0.00

This calculator uses average combined rates. Your actual rate depends on your exact location.

Get your exact rate →

How TaxAside Helps in Minnesota

  • Daily set-asides mean no tax-day surprises. We pull, calculate, set aside, and file — you do nothing.
  • On-Time Guarantee covers up to $5,000 in penalties if we're ever late filing your Minnesota return.
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Tired of worrying about Minnesota sales tax?

Let TaxAside handle it. We connect to your POS, set aside the right amount every day, and file your return on time — guaranteed.

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