Mining and Exploration Royalties


Minnesota requires income tax withholding on mining and exploration royalty payments for use of Minnesota lands. If you pay these royalties, you must withhold 6.25% as Minnesota income tax.

Do not withhold tax on royalties paid to:

  • Partnerships
  • S corporations
  • C corporations
  • Simple trusts, if they distribute all royalty income to their beneficiaries
  • The State of Minnesota, if you pay royalties on state-managed mineral lands

A simple trust may still elect to have you withhold tax, but they must notify you of their choice.

Note: If you are an individual receiving royalties, see Royalty Recipients.


Contact Info

Last Updated