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Hospital and Surgical Center Taxes
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MinnesotaCare Hospital and Surgical Center Taxes apply to gross receipts that licensed hospitals and outpatient surgical centers receive for providing patient services in Minnesota.
The tax rate is 1.6% for 2023. The tax rate was 1.8% for 2022.
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Filing and Payment Requirements
You need a Minnesota Tax ID Number and a tax account to file returns and pay tax.
You can register for a Minnesota ID number and an account at the same time, either:
If you already have a Minnesota ID number, you can add an account either:
- Online in our e-Services system by selecting Open a new account under I Want To…
- By phone at 651-282-5225 or 1-800-657-3605
You must file your annual return electronically using our e-Services system.
You must pay electronically if you meet certain requirements. Go to Electronic Payment for Business for information about the requirements.
If you are required to pay electronically, you can pay using our e-Services system, by Automated Clearing House (ACH) credit, or by credit or debit card. For more payment options, go to Make a Payment.
You must file your annual return and pay any tax owed by the due dates to avoid penalty and interest. If a due date falls on a weekend or holiday, your return or payment is due the next business day.
Return
The Hospital Tax Return and Surgical Center Tax Return are both due annually by March 15 for the previous calendar year. If you cannot file by the due date, you may request a 60-day filing extension.
Payments
If your total annual tax was more than $500 for the previous year and will be more than $500 for the current year, you must make monthly estimated tax payments.
Estimated tax payments are due by the 15th of each month. The first payment for the year is due February 15 and the last payment is due January 15 of the following year.
If you are not required to make monthly estimated tax payments, you may pay your tax annually when you file your return.
You must pay all tax owed by March 15.
If you are required to make monthly estimated tax payments, you must calculate the payments a specific way under the MinnesotaCare tax law.
Monthly estimated tax payments must be at least either:
- 90% of one-twelfth of your actual tax for the current year
- One-twelfth of your actual tax for the previous year
To calculate the amount you must pay, follow the Estimated Tax Instructions for Hospital and Surgical Center Taxes.
We may assess an additional charge for underpaid estimated tax on payments that are late or less than the required amount.
Note: When you file your annual return, you may need to make an additional payment. Our e-Services system compares your total monthly estimated tax payments to the tax you report on your return. If the tax on your return is more than your total payments, you must pay the remaining tax by March 15.
Annual Return Line Instructions
Use this information when you electronically file your annual return.
Gross receipts include amounts you receive for providing patient services in Minnesota. Include both taxable and exempt amounts in gross receipts. Any exempt amounts will be subtracted from gross receipts on the exemption lines of your return. For more information, go to Calculating Gross Receipts.
Several exemptions are available that may reduce your taxable gross receipts. The exemptions are for certain payments you receive and for legend drug purchases. You must include exempt amounts in gross receipts. If an amount qualifies for multiple exemptions, claim the amount for only one exemption.
For a list of common exemptions, go to MinnesotaCare Tax Exemptions for health care providers, hospitals, and surgical centers.
The Medical Assistance Supplemental Payments Exemption and Research Credit only apply to certain hospitals. If you believe you are eligible for the exemption or credit but have not claimed them in the past, contact us at 651-282-5533 so we can update your e-Services account.
