Minnesota Resale Certificate Guide 2026: How to Get Yours

Minnesota is the economic center of the Upper Midwest, with a diverse economy built on healthcare, financial services, manufacturing, agriculture, and retail. Major companies like Target, Best Buy, and UnitedHealth Group are headquartered here. With a state sales tax rate of 6.875% plus local taxes that can push the combined rate above 8%, a resale certificate is essential for any business purchasing inventory in the North Star State. This guide covers Minnesota's Form ST3, the Certificate of Exemption, and everything you need to know for 2026.

Minnesota Sales Tax Basics

State Base Rate

The Minnesota state sales tax rate is 6.875%. This is one of the higher state rates in the country.

Local Taxes

Minnesota allows cities, counties, and special taxing districts to impose additional local sales taxes. These local rates vary but can add 0.5% to 2% or more on top of the state rate.

Rates can vary within a single city depending on special taxing districts (stadiums, transit, etc.). Use our sales tax lookup tool to find the exact rate for any Minnesota address.

What Is Taxable in Minnesota?

Minnesota taxes most tangible personal property and some services:

• Most physical goods are taxable
• Clothing is exempt from sales tax (Minnesota is one of the few states with a full clothing exemption)
• Groceries (food for home consumption) are exempt
• Prescription and non-prescription drugs are exempt
• Most services are not taxable, but some are, including laundry, parking, telecommunications, and certain digital services
• Digital products (downloaded music, e-books, ringtones, digital audio/visual works) are taxable
• Prepared food (restaurant meals, takeout) is taxable

The Clothing Exemption

Like Pennsylvania and New Jersey, Minnesota exempts clothing from sales tax. This is a full exemption with no price threshold (unlike Massachusetts). Fur clothing, sports equipment, and protective equipment are exceptions and may be taxable.

What Form Do You Need?

Minnesota uses Form ST3, the Certificate of Exemption, issued by the Minnesota Department of Revenue.

About Form ST3

The ST3 is a multi-purpose exemption certificate that covers resale, manufacturing (industrial production), agricultural production, and other exemption categories. When claiming a resale exemption, the buyer selects "Resale" on the form.

Key fields include:

• Purchaser's name, address, and phone number
• Minnesota Tax ID Number
• Type of exemption claimed
• Description of items to be purchased
• Whether the certificate is a blanket certificate or single-purchase certificate
• Purchaser's signature and date

Note: Minnesota's form is "ST3" (no hyphen), which is different from New Jersey's "ST-3" (with hyphen). Do not confuse the two.

Where to Get the Form

Form ST3 is available as a free download from the Minnesota Department of Revenue website.

Who Needs a Minnesota Resale Certificate?

Any business purchasing tangible personal property for resale needs a Minnesota resale certificate. This includes:

Retailers buying inventory to sell in physical stores, online, at farmers markets, or at craft fairs.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution.

Online sellers registered with the Minnesota Department of Revenue who buy inventory for resale on any platform.

Manufacturers buying raw materials and components that become part of a product manufactured for sale.

Restaurants and food businesses purchasing food and beverage ingredients for preparation and sale as meals.

Who Does NOT Qualify

• Consumers making personal purchases
• Businesses buying equipment, supplies, or office furnishings for their own use
• Contractors buying materials for installation into real property (generally the end consumer in Minnesota)

How to Apply for a Minnesota Resale Certificate

Step 1: Register for a Minnesota Tax ID

You must register with the Minnesota Department of Revenue and obtain a Minnesota Tax ID Number before you can issue a valid ST3 for resale.

What you need to register:

• Federal EIN or SSN
• Business legal name and trade name (DBA)
• Business address
• Type of entity
• Description of products you will sell
• Expected start date
• Estimated monthly taxable sales

Registration is free. Apply online through Minnesota's e-Services portal or the Minnesota Business Registration application.

Processing time: Typically 2 to 5 business days for online applications.

Step 2: Complete Form ST3

Download the ST3 from the Department of Revenue website. Fill in your business details, select "Resale" as the exemption type, enter your Minnesota Tax ID, and describe the products you will purchase for resale.

You can choose to make the certificate a blanket certificate (covering all future purchases of specified products from a vendor) or a single-purchase certificate (covering one transaction only).

Step 3: Provide the Certificate to Your Suppliers

Give the completed ST3 to each supplier. The vendor keeps it on file and does not charge sales tax on qualifying purchases.

Want expert help? We handle everything from registration to certificate completion.

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Multi-State Considerations

Minnesota's SST membership simplifies multi-state compliance.

SST Membership

Minnesota is a full member of the Streamlined Sales Tax (SST) agreement. This means:

• Minnesota accepts the SST Certificate of Exemption as an alternative to the state-specific ST3
• Out-of-state businesses registered through the SST central system can use the SST certificate for purchases in Minnesota
• Minnesota businesses can use the SST certificate format when buying in other SST member states

Out-of-State Sellers

Minnesota's economic nexus threshold is $100,000 in sales or 200 transactions with Minnesota customers in the prior 12 months. If you exceed either threshold, you must register, collect, and remit Minnesota sales tax.

Marketplace Facilitators

Minnesota requires marketplace facilitators (Amazon, eBay, Walmart, Etsy) to collect and remit sales tax on behalf of their third-party sellers. If you sell exclusively through a marketplace, the marketplace handles your Minnesota sales tax. If you also sell directly, you need your own Minnesota registration.

Use Tax

If you purchase goods from an out-of-state vendor who does not collect Minnesota sales tax, you owe Minnesota use tax at the same rate as the sales tax for your location (6.875% plus applicable local taxes). Items purchased for resale are exempt.

For more on multi-state rules, see our multi-state resale certificate guide.

Common Mistakes with Minnesota Resale Certificates

Mistake 1: Confusing Form ST3 with New Jersey's ST-3

Minnesota's form is ST3 (no hyphen). New Jersey's form is ST-3 (with hyphen). These are completely different forms for different states. Make sure you are using the correct one.

Mistake 2: Buying Non-Resale Items Tax-Free

Using your resale certificate to purchase supplies, equipment, or personal items is illegal. The Minnesota Department of Revenue conducts regular audits and looks specifically for purchases that do not match the buyer's typical inventory.

Mistake 3: Forgetting Local Taxes on Non-Exempt Purchases

Many Minnesota businesses remember the 6.875% state rate but forget about local taxes when calculating what they owe on non-exempt purchases. In Minneapolis, for example, the combined rate is over 8%. Always use the full combined rate for your location.

Mistake 4: Not Specifying Blanket vs. Single-Purchase

The ST3 form asks whether the certificate is a blanket certificate or a single-purchase certificate. Leaving this blank can create ambiguity. If you intend the certificate to cover all future purchases from a vendor, clearly mark it as a blanket certificate.

Minnesota-Specific Rules You Should Know

The Clothing Exemption and Resellers

Since clothing is exempt from Minnesota sales tax for all buyers, some clothing resellers wonder whether a resale certificate matters for their purchases. It does. The resale certificate documents the wholesale nature of the transaction and provides proper documentation for both the buyer and seller. Always use one, even for exempt products.

Capital Equipment Refund

Minnesota offers a sales tax refund for capital equipment purchased by manufacturers and certain other businesses. If you buy machinery or equipment that qualifies, you pay the tax at the time of purchase and then apply for a refund. This is separate from the resale exemption and uses a different process (Form ST11, Application for Sales Tax Refund for Capital Equipment).

Agricultural Exemptions

Minnesota provides broad exemptions for farm machinery, agricultural supplies, and farm products. Farmers use the ST3 with the agricultural exemption category selected. Feed, seed, fertilizer, and farm chemicals are among the exempt items.

Lodging Tax

Minnesota imposes a 6.875% state lodging tax plus local lodging taxes on short-term accommodations. Some cities impose significant additional hotel taxes. This is separate from the general sales tax and does not affect resale certificate usage, but hospitality businesses should be aware of it.

Motor Vehicle Considerations

Motor vehicles are subject to a separate motor vehicle sales tax (MVST) in Minnesota, currently at 6.875%, administered by the Department of Public Safety rather than the Department of Revenue. Motor vehicle dealers purchasing vehicles for their dealer inventory use specific exemption documentation rather than the standard ST3.

Electronic Filing Requirements

Minnesota requires most sales tax registrants to file returns electronically through the e-Services portal. Paper filing is generally not accepted unless you receive specific approval. Make sure you have your e-Services account set up when you register.

Audit Practices

The Minnesota Department of Revenue typically audits businesses every 3 to 5 years. They review exemption certificates, purchase records, and sales records. Having complete, organized documentation is your best protection.

How Much Can You Save?

At Minnesota's combined rates of 6.875% to 8%+, savings are significant.

Calculate your exact savings with our savings calculator.

Minnesota Resale Certificate FAQs

Q: Does the Minnesota ST3 expire? A: Minnesota does not print an expiration date on the ST3. The certificate remains valid as long as the buyer's Minnesota tax registration is active and the information is accurate.

Q: Can I use the SST certificate instead of the ST3? A: Yes. Minnesota is an SST member and accepts the SST Certificate of Exemption as a valid alternative.

Q: Is there a fee for Minnesota sales tax registration? A: No. Minnesota does not charge a fee for sales tax registration.

Q: How do local taxes affect my resale certificate? A: Your resale certificate exempts you from both state and local sales taxes on qualifying purchases. You save the full combined rate, not just the state portion.

Q: What about the clothing exemption? A: Clothing is exempt for all buyers in Minnesota. However, resellers should still provide a resale certificate for clothing purchases to properly document the wholesale transaction.

Get Started with Your Minnesota Resale Certificate

Minnesota's 6.875% state rate and local add-ons make a resale certificate highly valuable. With SST membership simplifying multi-state compliance, there is no reason to delay.

• Expert help with Minnesota registration
• Assistance completing the ST3 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Minnesota's requirements, visit our Minnesota state page.

Minnesota's high combined rates make a resale certificate one of the most impactful tools for any business buying inventory in the state. Register with the Department of Revenue, complete the ST3, and keep your documentation organized.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start here for the fundamentals.
• Multi-State Resale Certificates - Minnesota's SST membership means one certificate format works across many states.
• How to Renew Your Resale Certificate - Minnesota certificates do not expire, but learn what to know about keeping them current.