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Insurance Premium Tax
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All property and casualty, title, surety, life, health, and township mutual insurance companies and risk retention groups must report the Insurance Premium Tax on your return.
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All Premium Tax returns (excluding Form M11T, Insurance Premium Tax and Firetown Report for Township Mutual Companies) may be filed electronically using a certified software provider. TriTech (Premium Pro) and Terabitten Tech (PremaTax) are the two providers that are certified for Insurance Premium MEF. To file on paper, see Forms and Instructions below.
| If you are a: | File form: |
|---|
| Life Insurer | Form M11L, Insurance Premium Tax Return for Life and Health Companies Depending on your state of incorporation, you may need to file Form M11B. |
| Township mutual insurance company | Form M11T. Insurance Premium Tax and Firetown Report for Township Mutual Companies |
| Risk retention group, property and casualty, or title and surety company | Form M11, Insurance Premium Tax for Property and Casualty Companies Depending on your license and state of incorporation, you may need to file Forms M11B, M11AR, IG258 and IG259. |
| Insurer not domiciled in Minnesota, Rhode Island, New York, Hawaii, Massachusetts, or Arizona | Form M11B, Insurance Fee Schedule |
| Property and casualty insurer that is domiciled in a state that has a fire tax. | Form M11AR, Fire Insurance Tax (Retaliatory Schedule) |
| Property and casualty insurer that has Clause 12 (auto) on your license | Form IG258, Police Premium Report |
| Insurer that has Clause 1 or Clause 2b on your license | Form IG259, Firetown Premium Report |
The tax rate for the Insurance Premium Tax depends on the type of insurer and policy.
- Township mutual insurance companies, the rate is 1 percent.
- Life insurers, the rate is 2 percent on accident and health premiums, and 1.5 percent on life insurance premiums.
- Mutual property and casualty insurance companies, the rate is:
- 1.26 percent if they have more than $5 million in assets this year and had less than $1.6 billion in assets on Dec. 31, 1989; or
- 1 percent if they have less than $5 million in assets this year.
- All others, the rate is 2 percent.
You must report Insurance Premium Tax by March 1 for the prior calendar year. If you owed more than $500 for the last tax year, you must make quarterly estimated payments on March 15, June 15, Sept. 15 and Dec. 15.
Each estimated payment must equal at least 25 percent of the prior year’s tax liability, or 20 percent of the current year’s tax liability.
If you made a mistake on your original return, you can amend it to correct the error. To do so:
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Complete a new return for the affected period. You must include both original and corrected premiums on the form (not just the new information).
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Check the “Amended Return” box at the top of the form.
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Include a cover letter that explains what was changed from your original filing and why you changed it.
You must file your amended return within 3 1/2 years from the due date of the original return. All amended returns are subject to audit.
Make sure to keep all supporting documentation from your original and/or amended return. That documentation must be available upon the department's request.
