Minnesota Contractor Sales Tax 2026

Minnesota sales tax rate for contractors

• Combined rate: 6.875% + local (~7.5% combined avg)
• Construction labor taxable: NO - real property labor is exempt
• Tax authority: Minnesota Department of Revenue

How Minnesota treats contractor labor

Real property labor exempt. Some installation services on TPP are taxable.

Minnesota-specific rules

45-day pre-lien notice on residential is strict - missing it voids lien. Residential builder license required for jobs over $15K.

Minnesota mechanics lien rights

Beyond sales tax, Minnesota contractor billing must respect the mechanics lien deadline of 120 days from last work. Preliminary notice: Pre-lien notice within 45 days of first work (residential of 4 units or less).

Minnesota contractor licensing

Minnesota Department of Labor and Industry - required for licensed work. $240 (residential builder/remodeler) + $15K bond. Board: https://www.dli.mn.gov.

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Minnesota contractor resources by trade

• Minnesota HVAC Cost
• Minnesota Plumbing Cost
• Minnesota Electrical Cost
• Minnesota Roofing Cost
• Minnesota Painting Cost
• Minnesota Concrete Cost