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Minimum Fee

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A business with a filing requirement is subject to the minimum fee if its Minnesota property, payroll, and sales or receipts total exceeds the minimum threshold. The minimum fee amounts are adjusted annually for inflation.

In some cases, the property, payroll, and sales or receipts used for computing the minimum fee are different from those used to apportion Minnesota income. For example, sales or receipts from an air carrier business are not included in the minimum fee calculation.

Note: If you are protected under federal Public Law 86-272, and do not have a Minnesota filing requirement, you do not need to pay a minimum fee.

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C Corporations [+]

Partnerships [+]

A partnership doesn't have to pay the minimum fee if:

More than 80% of the partnership's income is from farming
The partnership is a qualified business participating in a Minnesota Job Opportunity Building Zone (JOBZ), and all of its property and payroll are within the zone

The minimum fee is determined when you complete Form M3, Partnership Return. For more information, see Form M3 Instructions.

Limited Liability Companies (LLCs)

The minimum fee does not apply to a single-member LLC that reports its income and other information only on that member's Individual Income Tax Return (Form M1).

An LLC filing as a partnership with two or more members is subject to minimum fee if its Minnesota property, payroll, and sales or receipts total exceeds the minimum threshold.

S Corporations [+]

Most S corporation income is taxed after it passes through to shareholders. An S corporation doesn't have to pay the minimum fee if it is a qualified business participating in a Minnesota Job Opportunity Building Zone (JOBZ), and all of its property and payroll are within the zone.

S corporation taxes and the minimum fee are determined when you complete Form M8, S Corporation Return. For more information, see Form M8 Instructions.

Minimum Fee Brackets

The minimum fee brackets and amounts are adjusted annually for inflation.

2025 Minimum Fee [+]

If your total minnesota property, payroll, and sales is:	Your minimum fee is:
Less than $1,250,000	$0
$1,250,000 to $2,509,999	$260
$2,510,000 to $12,539,999	$750
$12,540,000 to $25,069,999	$2,510
$25,070,000 to $50,139,999	$5,020
$50,140,000 or more	$12,540

2024 Minimum Fee [+]

if your total minnesota property, payroll, and sales is:	your minimum fee is:
Less than $1,220,000	$0
$1,220,000 to $2,439,999	$250
$2,440,000 to $12,199,999	$730
$12,200,000 to $24,389,999	$2,440
$24,390,000 to $48,779,999	$4,890
$48,780,000 or more	$12,200

2023 Minimum Fee [+]

If your total minnesota property, payroll, and sales is:	your minimum fee is:
Less than $1,160,000	$0
$1,160,000 to $2,309,999	$240
$2,310,000 to $11,569,999	$690
$11,570,000 to $23,139,999	$2,310
$23,140,000 to $46,279,999	$4,640
$46,280,000 or more	$11,570

2022 Minimum Fee [+]

If your total minnesota property, payroll, and sales is:	Your minimum fee is:
Less than $1,080,000	$0
$1,080,000 to $2,159,999	$220
$2,160,000 to $10,809,999	$650
$10,810,000 to $21,609,999	$2,160
$21,610,000 to $43,219,999	$4,330
$43,220,000 or more	$10,810

Contact Info

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Last Updated

June 12, 2025