Minnesota
Taxes and business formation • USA 2025–2026
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.
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