Minnesota Sales Tax for Contractors (2026): Who Pays on a Home Remodel
Whether a Minnesota contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 6.875%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Minnesota
Materials only
You pay tax on building materials and charge none on a construction contract. Free-standing items are taxed to the customer.
6.875%
6.875% plus local
Itemizing or time and materials
No change found.
None from the homeowner. Give suppliers Form ST3 for free-standing items you resell.
Source: MN Revenue, General Contractors and Subcontractors (DOR guidance)
“Do not charge sales tax on construction contracts.”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $343.75 |
| Kitchen $40,000 job, $15,000 materials | $0 | $1,031.25 |
| Addition $90,000 job, $35,000 materials | $0 | $2,406.25 |
On the kitchen: The customer pays no sales tax. You pay $1,031.25 on $15,000 of materials at 6.875%, and build it into the price.
Also check
- Free-standing appliances and furniture you supply are sales; charge tax on them.
Minnesota sales tax questions
Do contractors charge sales tax in Minnesota?
Not on a home remodel. The contractor pays tax on materials when buying them and charges the homeowner none.
Is labor taxable in Minnesota?
Not for remodeling a home.
What rate do contractors pay on materials in Minnesota?
The 6.875% state rate, plus local tax, on what you buy.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.