Sales

rstmarti Fri, 04/11/2025 - 07:37

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Last Updated

April 17, 2025

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Sales

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Cannabis Tax is 10% of gross receipts from retail sales of taxable cannabis products. These products are also subject to both:

6.875% state general rate sales tax
Any applicable local sales taxes based on where the transaction takes place

You can use our Sales Tax Rate Calculator to help you determine the sales tax rate to charge.

Sales Subject to Cannabis Tax

Retail sales of the following products are subject to the Cannabis Tax:

Cannabis-derived products
- Flower – harvested flower, bud, leaves, and stems of the cannabis plant
- Concentrate and products containing cannabis concentrate
- Products infused with cannabinoids, including THC
Hemp-derived products
- Items intended for human or animal consumption that contain either:
  - Hemp plant parts
  - Hemp concentrate or artificially derived cannabinoids in combination with other ingredients
- Lower-potency hemp edibles – THC products intended to be eaten or consumed as a beverage by humans, containing hemp concentrate or artificially derived cannabinoids
Vaping solution products that contain cannabis or hemp-derived products
Substantially similar products
- Any product that is substantially similar to vaping solution products, cannabis-derived products, and hemp-derived products is also subject to Cannabis Tax

Note: Delivery charges for cannabis products are also subject to the Cannabis Tax.

Sales Subject to Sales Tax

Minnesota taxes most sales of tangible personal property (goods) and some services.

All sales subject to the Cannabis Tax are also subject to the state general rate sales tax and all applicable local sales taxes.

Sales of some cannabis-related products are subject to the general rate sales tax but are not subject to the additional Cannabis Tax.

This table shows how tax applies to some cannabis-related products and charges:

PRODUCT	SUBJECT TO SALES TAX	SUBJECT TO CANNABIS TAX
Cannabis-derived and hemp-derived products	Yes	Yes
Delivery charges	Yes, when the product is subject to Sales Tax	Yes, when the product is subject to Cannabis Tax
Mandatory service charges, included credit cards surcharges	Yes, when the product is subject to Sales Tax	Yes, when the product is subject to Cannabis Tax
Cannabis accessories, including vape related equipment and pipes	Yes	No
Growing equipment and supplies, including seeds	Yes	No
Nonintoxicating topical products	Yes	No
Cannabis plants	Yes	No

For more details, visit Taxable Sales in our Sales and Use Tax Business Guide.

Local Sales Tax

Some cities and counties have local sales and use taxes. If you are located in or make sales into an area with a local tax, you may owe local sales and use tax. For more information, see Local Sales and Use Tax Guide.

To determine the local sales tax rate, use the location where the product is received by the customer, which is typically your business address or the customer’s delivery address. You can use our Sales Tax Rate Map or Sales Tax Rate Calculator to help determine the sales tax rate.

Note: The map and rate calculator do not include special local taxes.

For more information, see:

Bundled Transactions

A bundled transaction is when a retailer sells a combination package consisting of at least two separate items sold together for one price. Bundled transactions are subject to Cannabis Tax if they contain at least one product subject to Cannabis Tax.

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Bundled Transaction Example [+]

A shop located in Bloomington sells edible gummies bundled with a hat for $10. This Bloomington transaction is subject to the following taxes:

6.875% state general rate sales tax
0.5% Bloomington Sales and Use Tax
0.5% Hennepin County Transit Tax
0.15% Hennepin County Sales and Use tax
0.25% Metro Area Sales and Use Tax for Housing
0.75% Metro Area Transportation Sales and Use Tax
10% Cannabis Tax

Because the products are bundled together for one price, the total charge is taxable. This table shows an example of how to charge tax.

ITEM	AMOUNT
Gummies and Hat Bundle	$10
General Rate Tax (6.875%)	$0.69
Local Taxes (2.15%)	$0.22
Cannabis Tax (10%)	$1
Total Tax	$1.91
Total	$11.91

Non-Bundled Transaction Example [+]

A shop located in Bloomington sells edible gummies and a hat in the same transaction, but they are separately stated on the invoice. This Bloomington transaction is subject to the following taxes:

6.875% state general rate sales tax
0.5% Bloomington Sales and Use Tax
0.5% Hennepin County Transit Tax
0.15% Hennepin County Sales and Use tax
0.25% Metro Area Sales and Use Tax for Housing
0.75% Metro Area Transportation Sales and Use Tax
10% Cannabis Tax

Because the products are sold as separate items, only the gummies are taxable. Clothing is exempt and is not subject to tax in the calculation. Below is an example of how to charge tax.

ITEM	AMOUNT
Gummies (taxable)	$5
Hat (non-taxable)	$5
General Rate Tax (6.875%)	$0.34
Local Taxes (2.15%)	$0.11
Cannabis Tax (10%)	$0.50
Total Tax	$0.95
Total	$10.95

Retail Delivery Fee

Delivery retail sales may also be subject to a Retail Delivery Fee of 50 cents. For additional information, visit our Retail Delivery Fee webpage.

Retail Sales versus Wholesale Sales

A retailer sells products to the end user or final customer. The retailer is responsible for collecting sales tax on the sale of the product. Retailers purchase their products exempt from sales tax by giving their vendor a completed Form ST3, Certificate of Exemption, and selecting the Resale exemption.

Retail sales are different than wholesale sales. The wholesaler of a product sells items to a retailer who later resells those items. When the retailer provides a completed exemption certificate to the wholesaler, the wholesaler is not required to collect sales tax.

For more information, see the Retailers and Wholesalers Guide.

Cannabis Testing Services

Mandated cannabis testing services are not taxable.

Cannabis-Related Events

Admissions

Admission charges to cannabis-related tasting events are not taxable.

Product Sales at Events

Cannabis and other taxable products sold at a tasting event are taxable. To determine the applicable taxes, see the Local Sales Tax section.

Coupons and Discounts

Coupons and discounts may change the tax amount due on retail sales.

For additional information, see Coupons, Discounts, Rewards, Rebates, and Other Forms of Payment.

Coupon Reducing Tax Amount Example [+]

A shop located in Bloomington sells edible gummies and offers a store coupon of 10% off the total purchase price. The Bloomington location is subject to the following taxes:

6.875% state general rate sales tax
0.5% Bloomington Sales and Use Tax
0.5% Hennepin County Transit Tax
0.15% Hennepin County Sales and Use tax
0.25% Metro Area Sales and Use Tax for Housing
0.75% Metro Area Transportation Sales and Use Tax
10% Cannabis Tax

The coupon is a store coupon, which lowers the total amount of tax due as shown in this table.

ITEM	AMOUNT
Gummies	$10
Store Coupon (10%)	($1)
Total Subject to Tax	$9
General Rate Tax (6.875%)	$0.62
Local Taxes (2.15%)	$0.19
Cannabis Tax (10%)	$0.90
Total Tax	$1.71
Total	$10.71

If you are not reimbursed for the coupon amount, the coupon reduces the taxable purchase price.

Coupon Not Reducing Tax Amount Example [+]

A shop located in Bloomington sells edible gummies and accepts a manufacturer’s coupon for 10% off the total purchase price. The Bloomington location is subject to the following taxes:

6.875% state general rate sales tax
0.5% Bloomington Sales and Use Tax
0.5% Hennepin County Transit Tax
0.15% Hennepin County Sales and Use tax
0.25% Metro Area Sales and Use Tax for Housing
0.75% Metro Area Transportation Sales and Use Tax
10% Cannabis Tax

The coupon is a manufacturer’s coupon, which does not lower the total amount of tax due as shown in this table.

ITEM	AMOUNT
Gummies	$10
Manufacturers Coupon (10%)	($1)
Total Subject to Tax	$10
General Rate Tax (6.875%)	$0.69
Local Taxes (2.15%)	$0.22
Cannabis Tax (10%)	$1.00
Total Tax	$1.91
Total	$10.91

If you are reimbursed for any coupon amount, the taxable purchase price is not reduced by the reimbursement amount.

Exemptions

The following sales are exempt from both Cannabis Tax and sales tax:

Products sold on Tribally regulated land by a seller licensed by the tribe.
Medical cannabis sold to or for a patient enrolled in the state’s medical cannabis registry program.
Sales to those purchasing products for resale. Retailers purchase products exempt from sales tax by providing their vendor with Form ST3, Certificate of Exemption and select the Resale exemption.

Sales

Guide Menu

Sales

Sales Subject to Cannabis Tax

Sales Subject to Sales Tax

Local Sales Tax

Bundled Transactions

Retail Delivery Fee

Retail Sales versus Wholesale Sales

Cannabis Testing Services

Cannabis-Related Events

Admissions

Product Sales at Events

Coupons and Discounts

Exemptions