Automate sales tax calculations, reporting and filing today to save time and reduce errors. Minnesota Sales Tax Calculator. Results Total Sales Tax Rate:. Table of Contents Do you need to collect sales tax in Minnesota? Do you have physical nexus in Minnesota? Do you have economic nexus in Minnesota? Filing Sales Tax. Featured Content Download the report Sales tax compliance in Changes you need to know Share this. Do you need to collect sales tax in Minnesota? How to get a sales tax permit in Minnesota There are a few options to get a sales tax permit in Minnesota: You may register for a Minnesota tax ID number online at Minnesota e-Services.
You may register with a paper form here. You may register by telephone by calling or Collecting Sales Tax Minnesota is a destination-based sales tax state. Should you collect sales tax on shipping charges in Minnesota? It applies when you buy, lease or rent taxable items on services used in your business without paying sales tax to the seller. The use tax rate is the same as the sales tax rate. The rate is applied to the cost of the taxable purchases on which the sales tax is not paid.
The buyer pays use tax directly to the state. Both businesses and individuals are subject to use tax. The Minnesota Department of Revenue currently administers several local sales and use taxes. The general local taxes apply to the same items that are taxed by the Minnesota sales and use tax law. You must be registered for any locality if you do business there. The Social Security and Medicare benefit programs are financed by taxes paid by employers and employees under the Federal Insurance Contributions Act FICA , and by self-employed individuals through the self-employment tax.
FICA taxes are levied on both the employer and the employee. The amount of withholding is based on the wages or salary paid to the employee, and the number of withholding allowances claimed by the employee on Form W-4, Withholding Allowance Certificate, which the employee completes at the time of hiring. The Internal Revenue Service and the Minnesota Department of Revenue provide withholding tables to enable the employer to determine the appropriate withholding amount.
Both the Internal Revenue Service and the Minnesota Department of Revenue require employers to deposit withheld tax on a periodic basis, and to file periodic returns. Both the Internal Revenue Service and the Minnesota Department of Revenue assess penalties and interest for the failure to make deposits on time, the failure to file required returns on time, and the failure to file Form W-2 and forms.
The amount of penalty for late deposits or late filing is based on the length of time the payment or return is late. The Internal Revenue Service imposes a penalty on failure to provide correct information on W-2 forms, and failure to provide a correct Taxpayer Identification Number.
In addition, the Minnesota Department of Revenue imposes a penalty on failure to provide Form W-2 information to the department and for refusing to provide all information required on the forms. Any person responsible for paying withholding tax may be held personally liable for failure to do so.
Interest is assessed on unpaid withholding tax plus penalties. When a customer returns a taxable item, refund the purchase price and sales tax paid on refunded items. Some cities and counties have local sales and use taxes.
If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Taxes. To determine the sales tax rate, use the location where the product is received by the customer, typically your business or a delivery address. Note: The map and rate calculator do not include special local taxes. For more information, see:. Search this guide.
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