Minnesota sales tax codes and rates
Minnesota's state sales tax rate is 6.875%; county and city rates come on top and are not included. A Nefin company that sells into Minnesota gets 2 sales codes, each named after the line of the Sales and Use Tax Return (e-Services) it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under MN-200, and Nefin works out the use tax due.
Minnesota codes from the Sales and Use Tax Return (e-Services)
Each code is “MN-” plus the line it fills on the Sales and Use Tax Return (e-Services). Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| MN-100 | MN taxable sales 6.88% (6.875% rounded) (e-Services Line 100) | 6.88% |
| MN-GR-NT | MN nontaxable sales: resale, exempt, out-of-state (Gross Receipts only) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| MN-200 | MN purchases subject to use tax (e-Services Line 200) | 0% |
Minnesota in the tax books
Nefin’s sales tax book has one row per invoice and one column per Sales and Use Tax Return (e-Services) line; these are the Minnesota columns and the totals worked out from them.
Sales Tax Book
Minnesota - Sales and Use Tax Return (e-Services)
- [MN-100]General rate sales tax, taxable amount (Line 100)
- [MN-GR-NT]Nontaxable sales, in Gross Receipts only
Totals Nefin calculates
- [MN-GrossReceipts] Gross receipts (no line number)Sum of the net amounts in [MN-100] + [MN-GR-NT]
- [MN-100-TAX] General rate sales tax 6.875% (Line 100, local excluded)Net amount × 6.875%, from [MN-100]
Use Tax Book
Minnesota - Sales and Use Tax Return (e-Services)
- [MN-200]Use tax purchases (Line 200)
Totals Nefin calculates
- [MN-200-TAX] Use tax 6.875% (Line 200, local excluded)Net amount × 6.875%, from [MN-200]
Frequently asked questions
What is the Minnesota sales tax rate?
The state rate is 6.875%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Minnesota sales tax codes does Nefin set up?
2 sales codes from the Sales and Use Tax Return (e-Services), for example MN-100 (MN taxable sales 6.88% (6.875% rounded) (e-Services Line 100)), MN-GR-NT (MN nontaxable sales: resale, exempt, out-of-state (Gross Receipts only)).
How does Nefin handle Minnesota use tax?
Book a purchase on which the vendor charged no Minnesota tax under MN-200 (MN purchases subject to use tax (e-Services Line 200)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6.875%.
Are these Minnesota codes official?
They are a starting point. Each code follows a line of the Sales and Use Tax Return (e-Services), but check them against your return before you file, and edit them in Settings, VAT rates.