Minnesota Sales Tax Permit: Free Registration With the Department of Revenue

This guide is informational only. It is not legal or tax advice. Rates, fees and rules change, so confirm every figure on the agency page linked here before you act. For complex situations, talk to a qualified attorney or CPA.

If you sell taxable goods or services in Minnesota, you will see the terms minnesota sales tax registration, minnesota sales tax permit, minnesota seller's permit, minnesota sales tax license and minnesota tax ID number used almost interchangeably. Here is the plain version. The Minnesota Department of Revenue does not issue a license called a sales tax permit. What you receive is a Minnesota Tax ID Number, which is seven digits, and a sales and use tax account. You apply for both through Business Tax Registration in Revenue e-Services. Revenue's Tax ID page lists no registration fee, so the registration itself carries no charge. The sales tax you collect from customers is a different matter, and it is covered below.

Tax ID number vs. license: what registration actually is

Minnesota has no general statewide business license. Registering with Revenue is a tax registration. It is not a license to operate, and it does not authorize any trade or activity. Several other filings get confused with it, and they are handled by different offices:

• Entity filings with the Secretary of State. Forming an LLC is a filing, not a license. The Articles of Organization cost $155 online or in person, or $135 by mail. The Annual Renewal costs $0 and is due December 31 every year. Corporations file Articles of Incorporation under the same $155 filing fee, and the corporation franchise tax is 9.8 percent.
• Assumed name (DBA) certificates. These are filed only with the Secretary of State, Business Services. They cost $50 online or in person, or $30 by mail. After filing, the certificate must be published for two consecutive issues in a qualified legal newspaper in the county of your principal place of business. Failure to publish may make the certificate invalid. LLC and corporation formation needs no publication, but a DBA does.

Filing a DBA does not give you a Tax ID, and getting a Tax ID does not register a trade name. Many businesses need both, and each one is handled by a separate office.

Who has to register

Register with Revenue before you make your first taxable sale. Registration is required for the following activities:

• Making taxable sales of goods
• Providing taxable services
• Withholding wages from employees
• Filing franchise, S corporation or partnership returns

If your business makes no taxable sales and has no employees, ask Revenue or a CPA which parts of registration apply to you. Do not assume that a business with no sales is automatically exempt from every return. The answer depends on how your entity is taxed federally and what it actually does in Minnesota.

How to apply, step by step

1. Gather the basics first. Have your legal business name, business structure, business address, the names of your owners or officers, and your start date ready. Revenue's registration pages list every field they ask for, so check them before you begin.
2. Open Business Tax Registration. Go to the new business registration page in Revenue e-Services.
3. Select the accounts you need. Choose the sales and use tax account if you will sell taxable goods or services. Add any other tax types that apply, such as wage withholding or the franchise, S corporation or partnership returns.
4. Submit and record your Tax ID. Save your seven-digit Minnesota Tax ID Number in a secure place. You will need it on returns, on resale certificates and when dealing with suppliers.
5. Review your filing schedule. Check the return frequency Revenue assigns to your account in e-Services, and set a calendar reminder for each due date.
6. Start collecting tax correctly. Charge the combined state and local rate for each location before your first taxable sale.

This guide does not state a processing time for new registrations. Check Revenue's site before you set a launch date, especially if a supplier, landlord or event organizer needs your Tax ID by a specific day.

Minnesota sales tax rates

The state sales tax rate is 6.875 percent. The rate has two parts, and the second part is temporary:

Component	Rate	Notes
State general sales tax	6.5%	Minn. Stat. 297A.62
Legacy portion	0.375%	Set to expire July 1, 2034
State total	6.875%	Applies statewide
Local general taxes	Vary by location	Added on top of the state rate

Local taxes sit on top of the state rate, so your customer pays more than 6.875 percent in many places. Revenue's Q4 2026 rate guide shows combined general rates up to 9.875 percent in St. Paul. Some cities also add special local taxes on lodging, food and liquor. Look up the rate for every location where you make sales, and confirm it against Revenue's current rate guide before you publish prices.

Because the 0.375 percent Legacy portion is set to expire July 1, 2034, do not hard-code 6.875 percent into a point-of-sale system or invoice template and forget about it. Build the rate as a setting you can change.

Out-of-state sellers

You do not have to be located in Minnesota to owe Minnesota sales tax. Remote sellers have economic nexus in Minnesota at 200 or more retail sales, or more than $100,000 of sales into Minnesota in the prior 12 months (Minn. Stat. 297A.66). If you cross either threshold, plan to register and collect. Because the thresholds count sales in a specific way, confirm how they apply to your sales with Revenue or a CPA before you rely on them.

Buying inventory for resale without paying tax

If you buy goods to resell, you can buy them without paying sales tax by giving your supplier Form ST3, Certificate of Exemption, and marking the resale exemption. Your Minnesota Tax ID goes on the form. A seller may also accept a buyer's own exemption certificate, provided it contains the required details. Read the form's instructions carefully, because an incomplete certificate may not protect you.

Use the resale exemption only for goods you will actually resell. Using it for items you keep for your own use can create tax you owe, plus the penalties and interest that come with it. Keep a copy of every certificate you accept or issue. Certificates do not expire on their own unless the information on them changes, but you should refresh them every three to four years and sooner whenever your details change.

Local licenses and permits

A Tax ID is not a substitute for the license your trade needs. Minnesota issues licenses and permits by trade or activity, through agencies and boards that include:

• Department of Labor and Industry (DLI)
• Minnesota Department of Health (MDH)
• Minnesota Department of Agriculture (MDA)
• Alcohol and Gambling Enforcement Division
• Office of Cannabis Management
• Department of Children, Youth and Families (DCYF)
• Minnesota Department of Transportation (MnDOT)
• Driver and Vehicle Services (DVS)
• Professional licensing boards

Local zoning and city licenses are added on top of these, and they are set by category. Minneapolis and St. Paul both license by category, and neither issues a general business license. Minnesota has 87 counties, about 853 cities and about 1,780 townships, so the local rules you face depend on where you operate. Ask your city or township about zoning and licensing before you sign a lease or open a location.

To find the license your activity needs, use License Minnesota at mn.gov/elicense. You can browse by topic, by agency, or through the A to Z index.

Common mistakes to avoid

• Treating the Tax ID as a license. It registers you for taxes. It does not clear you to practice a trade or operate a location.
• Quoting prices without local tax. The state rate is only the starting point, and combined rates vary by city.
• Accepting incomplete resale certificates. A certificate with missing details may not hold up if the state questions the sale.
• Assuming a DBA filing registers you with Revenue. The DBA goes to the Secretary of State and is separate from your tax account.
• Forgetting the 2034 change. The Legacy portion of the state rate is set to expire July 1, 2034, so keep the rate in one place you can update.

Where to get official help

Start with the agencies that own each piece of this process. The Department of Revenue handles tax registration and rates at revenue.state.mn.us. The Secretary of State handles entity filings and DBAs at sos.mn.gov. Use the Secretary of State business search to check whether a name is already on file before you file anything.

For free advising, the Minnesota Small Business Development Center Network, administered by the Minnesota Department of Employment and Economic Development, offers help with planning and registration at mn.gov/deed/business/help/sbdc. For a multi-state seller, a question about a specific sale, or a business with employees and several tax types, talk to a qualified CPA or tax attorney before you rely on any answer, including the ones in this guide.

This guide is informational only and is not legal or tax advice. Confirm current rates, fees and deadlines with the agency named in each section.