Minn. DOR, Sales Tax for Remote Sellers (updated Mar. 13, 2026) — Sales Tax for Remote Sellers — Small Seller Exception ($100,000 or 200 retail sales over prior 12 months)

# Remote sellers and the collection requirement

A remote seller is an out-of-state retailer or marketplace provider that sells products to customers in a state, online, or through mail or phone orders, without having a physical presence in that state. Remote sellers are required to collect and remit Minnesota Sales Tax if they meet certain economic nexus thresholds.

# Small Seller Exception — 200 retail sales or more than $100,000, measured over the prior 12 months

Remote sellers are required to file and collect Minnesota state and local sales tax if their total sales over the prior 12-month period exceed either: 200 or more retail sales shipped to Minnesota, or more than $100,000 in retail sales shipped to Minnesota. Note that Minnesota measures a rolling prior 12-month period, not a calendar year. A retail sale is one sales transaction — one sale into Minnesota containing 10 items for one customer counts as one retail sale. When calculating the exception, do not include sales where the purchaser is buying for resale; the purchaser must give a completed Form ST3, Certificate of Exemption, claiming the resale exemption.

# Exceeding the Small Seller Exception — registration timing and multi-channel rules

A seller whose retail sales exceed the Small Seller Exception must register, collect, and remit Minnesota sales tax on the first day of a calendar month that occurs no later than 60 days after exceeding the exception. A seller selling through multiple sources — a marketplace, its own website, and other sources — must determine its total retail sales into Minnesota from all sources; if combined retail sales from all sources meet or exceed the exception, it must collect and remit on taxable sales made through its website and other sources that do not collect on its behalf. If a marketplace provider collects and remits on the seller's behalf, the seller does not collect on those sales. The seller must continue to collect and remit until at least the last day of the 12th calendar month from the month it started collecting, and may stop only after notifying the Department that it stopped soliciting Minnesota sales and verifying it did not meet the thresholds during the 12 calendar months following the month collection was required. Sales made before exceeding the exception (plus the 60-day registration period) are not subject to collection, though customers may owe use tax on them.

# Streamlined Sales Tax membership and local taxes

Minnesota is a member of the Streamlined Sales and Use Tax Agreement (SSUTA); a remote seller may register through the Streamlined Sales Tax Registration System to establish sales tax accounts with all SSUTA member states in a single registration. Remote sellers must collect local sales taxes based on where the customer receives the product or service; the Department provides a sales tax rate calculator and rate tools. For sellers not registered before the Wayfair decision, the earliest month to include in calculating the Small Seller Exception is August 2017.