Minnesota sales tax on invoices (2026 guide)

Minnesota's state sales tax rate is 6.875%. Many cities and counties add local sales taxes, and the seven-county Twin Cities area adds 1% in metro area taxes, so combined rates in Minneapolis and St. Paul are above 9%.

Minnesota also taxes more services than most states — building cleaning, landscape maintenance, security and pet care among them. If you run a service business, don't assume your work is tax-free: check the Department of Revenue's taxable services list first.

Minnesota sales tax rates

The two metro area taxes apply in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. They're general local sales taxes and follow the same rules as other local taxes.

A few combined general rates from the Department's local rate guide for October 1 – December 31, 2026:

Local rates change, often at the start of a quarter, and the rate guide doesn't include special local taxes. Local tax is based on where your customer receives the product or service, so use the Department's Sales Tax Rate Calculator for each address. Our sales tax calculator does the arithmetic once you know the rate.

Which services are taxable in Minnesota?

The Department of Revenue lists these taxable services:

• building cleaning and maintenance,
• landscape maintenance services,
• detective, security and alarm services,
• laundry, dry cleaning and alterations,
• lodging and related services,
• massages,
• motor vehicle towing, washing, waxing, rustproofing and cleaning,
• parking services,
• pet grooming, boarding and care,
• telecommunication services,
• delivery charges, and
• admissions to places of amusement, amusement devices, health clubs and athletic facilities, and memberships to them.

The Department notes that each broad category can include activities that aren't taxable, so check the detailed guidance for your industry.

Software and digital products. Prewritten software is taxable, and so are digital products such as music, movies, e-books and online games. Custom software created for a specific customer is not taxable, and the Department says subscriptions to online-hosted software are not taxable.

Registering to collect Minnesota sales tax

Register with the Minnesota Department of Revenue for a sales and use tax account before you make taxable sales in Minnesota. Once registered, you collect state tax plus any local taxes for the place where the customer receives the goods or services.

Remote sellers. An out-of-state seller must collect Minnesota state and local sales tax once, over the prior 12 months, it has made 200 or more retail sales shipped to Minnesota or more than $100,000 in retail sales shipped there. Sales for resale don't count, as long as the buyer gives you a completed Form ST3. After passing the threshold, you must start collecting no later than the first day of a calendar month within 60 days. Minnesota is a member of the Streamlined Sales and Use Tax Agreement, so you can also register through the Streamlined system.

What a Minnesota sales tax invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and the invoice date,
• a description and price for each item or service,
• sales tax as a separate line, with the combined rate for the customer's location, and
• the total due.

If you do both taxable and non-taxable work for the same client, keep them on separate lines. In Invoice Native, tick Tax only on the taxable lines.

Resale and exemption certificates

Minnesota uses one form for most exemptions: Form ST3, Certificate of Exemption. A business buying to resell, or a buyer claiming another exemption, fills it out and gives it to you. Keep the completed certificate with your records — it's your evidence for not charging tax.

See how to invoice a tax-exempt customer for how to show an exempt sale on your invoice.

A worked example

Say you run a cleaning business in Rochester and clean a client's office every week. Your monthly invoice is $1,600 for building cleaning — a taxable service in Minnesota.

Rochester's combined general rate for October–December 2026 is 8.125%. The tax is $1,600 × 8.125% = $130.00, and the invoice total is $1,730.00.

If the same client were in St. Paul (9.875%), the tax on $1,600 would be $158.00 and the total $1,758.00 — which is why the customer's location matters.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of Minnesota's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into — and use that state's rate on those invoices.

Common mistakes on Minnesota invoices

• Assuming services are tax-free. Cleaning, landscape maintenance, security and pet care are on the taxable list.
• Using your own city's rate instead of the rate where the customer receives the service.
• Forgetting the 1% metro area taxes in the seven Twin Cities counties.
• Using an out-of-date local rate. Check the rate guide each quarter.
• Not getting a Form ST3 for resale and other exempt sales.

Quick checklist for Minnesota invoices

• ✅ Sales and use tax account with the Department of Revenue
• ✅ Checked your services against the taxable services list
• ✅ 6.875% plus local and metro taxes for the customer's location
• ✅ Taxable and non-taxable lines separated, tax on its own line
• ✅ Form ST3 on file for every exempt sale