Minnesota
Taxes and business formation • USA 2025–2026
TL;DR
Minnesota at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Minnesota.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $155.00 |
| LLC annual report fee | $0.00 |
| LLC annual report deadline | December 31 |
| LLC dissolution fee | $55.00 |
| Corporation formation fee | $155.00 |
| Corporation annual report fee | $0.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
Corporation in Minnesota
Tax system of Minnesota
Income Tax
Minnesota has a progressive personal income tax with rates ranging from 5.35% to 9.85%.
Sales Tax
The base sales tax rate is 6.875%, but local taxes can push this rate up to 9.03% in some areas. We provide services for obtaining a Sales Tax Certificate and for preparing and filing the Sales and Use Tax Return. We advise business owners on registration, calculation, and reporting.
Property Tax
The average property tax rate is 1.05% of home value, which is a moderate level.
Business Taxes
Companies in Minnesota are subject to a corporate tax rate of 9.8% — one of the highest in the U.S. It applies to C-corporations; S-corporations are exempt. Annual Renewal must be filed each year by December 31.
Commercial Property Tax Surcharge
Applies to business real estate above a certain threshold.
Estate / Inheritance Tax
Applies to the transfer of assets above $3 million.
Excise Taxes
Minnesota levies excise taxes on items such as alcohol, tobacco, and fuel.
Frequently asked questions
Does Minnesota have a personal income tax?+
Yes. Minnesota levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Minnesota?+
The state filing fee in Minnesota is $155.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Minnesota LLC?+
The Minnesota annual report fee is $0.00, due December 31. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Minnesota to open an LLC there?+
No. You do not need to live in Minnesota — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Minnesota state return remotely?+
Yes. FinTaxes prepares and e-files federal and Minnesota state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
Starting a business in Minnesota?
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