MinnesotaCare Taxes
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.
2024 MinnesotaCare Tax Rate Change
The MinnesotaCare Tax Rate will change to 1.8% in 2024 for the Provider, Hospital, Surgical Center, Wholesale Drug Distributor, and Legend Drug Use Taxes.
Why is the tax rate changing?
Revenue from MinnesotaCare taxes is deposited into Minnesota’s Health Care Access Fund. The tax rate will change to 1.8% in 2024 to bring the fund into balance. For more information about the change, refer to Minnesota Statutes 295.52, subdivision 8.
