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Nexus (Taxable Presence)
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For Minnesota Business Taxes
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Nexus is a connection a business or individual has with a state that requires them to file and pay taxes in that state.
Nexus is also known as taxable presence and generally affects out-of-state businesses, marketplace providers, or remote sellers.
In Minnesota, nexus includes:
- Economic nexus: Based on your business activities in Minnesota
- Physical presence nexus: Based on whether you maintain a place of business in Minnesota
Nexus Requirements in Minnesota
Nexus requirements vary for each tax type. If you meet the requirements for a certain tax, you must file and pay the tax.
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We collect tax from cigarette and tobacco products distributors and some retailers who are subject to the federal PACT Act or have physical or economic nexus with Minnesota.
For more details, go to:
Nexus for out-of-state business entities is established based on activities conducted within the state of Minnesota. A company does not need to have a physical presence in Minnesota to have an income tax filing requirement and Minnesota does not have a business income threshold.
For more details, go to Nexus and Business Income Tax.
We collect tax from health care providers, hospitals, and surgical centers that provide health care goods and services in Minnesota. We also collect tax on legend drugs sold, delivered, or distributed into the state. These taxes fund the MinnesotaCare program, a state health care program for Minnesotans with low incomes.
You may be subject to MinnesotaCare taxes if you have physical or economic presence in Minnesota.
For more details, go to:
Nexus is established differently depending on if you have a physical presence in Minnesota or if you are an out-of-state retailer or marketplace provider with no physical presence.
We can help you determine if you need to register and collect Minnesota Sales and Use Tax. Complete and send us Form ST101, Business Activity Questionnaire.
For more details on sales tax nexus requirements, go to:
