Enterprise
Individual & Small Business
Minnesota Sales Tax Nexus: Economic Nexus Threshold (2026)
Minnesota's economic nexus threshold for remote sellers is $100,000 in sales or 200 transactions (meeting either test is enough), measured over the prior 12-month period (rolling 12 calendar months). Marketplace sales count toward Minnesota's threshold. Inventory or another physical presence in Minnesota generally creates nexus regardless of sales. The state rate is 6.875%, plus local taxes.
Minnesota sales tax nexus: key facts
| Sales threshold | $100,000 |
|---|---|
| Transaction threshold | 200 transactions |
| Test | Sales OR transactions |
| What counts | Retail sales shipped to Minnesota from all sources (more than $100,000), or 200 or more retail sales transactions; sales for resale are excluded; one transaction = one retail sale regardless of number of items |
| Measurement period | Prior 12-month period (rolling 12 calendar months) |
| Marketplace sales count toward your threshold? | Yes, counted |
| Marketplace facilitator law | Yes: marketplaces generally collect on the sales they facilitate |
| State rate | 6.875% |
| Local sales taxes | Yes, in addition to the state rate |
| Current threshold effective | October 1, 2019 |
| Recent change | No threshold change found; see the note below |
| Registration | Official registration page |
| Last researched | September 23, 2026 |
The state rate is the statewide state-level rate only. Local and district rates are extra where they apply.
Recent changes we checked
No 2024-2026 change to the remote seller threshold was found. A 50-cent Retail Delivery Fee took effect July 1, 2024 (Minn. Stat. 168E.03). It applies to each retail delivery transaction of qualifying items totaling $100 or more; retailers with $1 million or less in retail sales in the previous calendar year are exempt. A 2025 bill (HF 5) to repeal the fee was introduced, but the statute appears in the 2025 Minnesota Statutes with no repeal.
Quick check: do you have nexus in Minnesota?
Enter your Minnesota sales to see whether you may have nexus.
Selling into several states? Use the full Sales Tax Nexus Checker. Your figures stay in your browser.
What to do after crossing the Minnesota threshold
When it starts:
- Collection must begin on the first day of a calendar month no later than 60 days after the seller exceeds the small seller exception (Minn. Stat. 297A.66 subd. 2(d)).
- Confirm the numbers. Check your Minnesota sales against the measure and period in the key facts above.
- Register before you collect. Use Minnesota's official registration page. Collecting a state's tax without a registration is generally not allowed.
- Collect and file. Charge Minnesota sales tax (plus any local taxes that apply at the delivery address) on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
- Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.
Physical presence and inventory in Minnesota
Retailers maintaining a place of business in Minnesota (including inventory stored in the state, e.g., FBA/3PL) must collect regardless of sales volume; the small seller exception applies only to retailers without a Minnesota place of business.
Marketplace sellers in Minnesota
Do marketplace sales count toward your own threshold? Yes, counted.
DOR Remote Sellers page: 'If you sell through multiple sources, such as a Marketplace, your own website, and other sources, you must determine your total retail sales made into Minnesota from all sources.' The seller need not collect on sales where a marketplace provider collects on its behalf. Minn. Stat. 297A.66 subd. 1(c) applies the same thresholds to retailers and marketplace providers that 'make or facilitate' sales.
Other things to know about Minnesota
- Full SSUTA member; remote sellers must collect state plus applicable local sales taxes based on where the customer receives the product (destination sourcing).
- Retail Delivery Fee (from 7/1/2024): 50 cents per qualifying delivery of $100 or more, imposed on retailers with more than $1 million of prior-year retail sales, reported with sales tax.
- A 'retail sale' for threshold purposes is one transaction (one order with 10 items = one sale); sales for resale are excluded.
Frequently asked questions
What is the Minnesota economic nexus threshold?
$100,000 in sales or 200 transactions (meeting either test is enough), measured over the prior 12-month period (rolling 12 calendar months). What counts: Retail sales shipped to Minnesota from all sources (more than $100,000), or 200 or more retail sales transactions; sales for resale are excluded; one transaction = one retail sale regardless of number of items.
Do marketplace sales count toward the Minnesota threshold?
Yes, counted. DOR Remote Sellers page: 'If you sell through multiple sources, such as a Marketplace, your own website, and other sources, you must determine your total retail sales made into Minnesota from all sources.' The seller need not collect on sales where a marketplace provider collects on its behalf. Minn. Stat. 297A.66 subd. 1(c) applies the same thresholds to retailers and marketplace providers that 'make or facilitate' sales.
Does FBA or 3PL inventory in Minnesota create nexus?
Retailers maintaining a place of business in Minnesota (including inventory stored in the state, e.g., FBA/3PL) must collect regardless of sales volume; the small seller exception applies only to retailers without a Minnesota place of business.
When do I have to start collecting Minnesota sales tax?
Collection must begin on the first day of a calendar month no later than 60 days after the seller exceeds the small seller exception (Minn. Stat. 297A.66 subd. 2(d)).
Registration: official registration page.
Does Minnesota have a transaction-count test?
Yes: 200 transactions. Meeting either the dollar or the transaction test is enough. It applies to each retail delivery transaction of qualifying items totaling $100 or more; retailers with $1 million or less in retail sales in the previous calendar year are exempt.
Crossed the Minnesota threshold, or not sure? A professional can confirm it and handle registration.
Nexus Study + Registration + Cleanup
Fixed price, quoted before any work starts
- State-by-state review of your sales and inventory locations
- Registration in states where you have nexus
- Plan for any past-due periods (including voluntary disclosure where appropriate)
- Ongoing sales tax filing option
Disclaimer: This page provides general information for educational purposes and is not tax, legal or accounting advice. State rules change, and whether you have nexus can depend on facts not covered here. Confirm with Minnesota's official guidance or a qualified professional before acting. RAHA Financials is not affiliated with any state tax agency.
Sources
- Primary official source: https://www.revisor.mn.gov/statutes/cite/297a.66
- revenue.state.mn.us: https://www.revenue.state.mn.us/sales-tax-faqs-remote-sellers
- revenue.state.mn.us: https://www.revenue.state.mn.us/sales-tax-marketplace-providers
- revenue.state.mn.us: https://www.revenue.state.mn.us/sales-tax-update-remote-sellers
- revenue.state.mn.us: https://www.revenue.state.mn.us/retail-delivery-fee
- revisor.mn.gov: https://www.revisor.mn.gov/statutes/cite/168E.03
- revenue.state.mn.us: https://www.revenue.state.mn.us/guide/taxes-and-rates