How much is Minnesota's retail delivery fee and when does it apply?

The statute sets the fee at 50 cents on each transaction that equals or exceeds 100 dollars before sales tax, charged once per transaction regardless of the number of shipments. The Department's page says the fee covers taxable goods and clothing, leaves food out of the 100 dollar count and excludes pickup at the retailer's location. This is not tax advice; confirm with the Minnesota Department of Revenue.

Does the fee apply if my store is small?

Not if the store made retail sales totaling less than 1,000,000 dollars in the previous calendar year, according to section 168E.05. Over that line, the retailer owes the fee and may, but does not have to, collect it from the buyer. Confirm your own case with the Department.

Is clothing taxed in Minnesota, and does the delivery fee apply to it?

Clothing is exempt from the sales tax under section 297A.67, subdivision 8, except accessories and equipment, sports or recreational equipment, protective equipment and fur clothing. The Department's page says clothing still counts toward the 100 dollar delivery fee threshold and is subject to the fee.

Do I have to collect Minnesota sales tax from outside the state?

Section 297A.66 treats an out-of-state retailer as regularly soliciting Minnesota sales if it solicits through a listed channel, such as a website accessible from Minnesota, and in the prior 12 months made 200 or more retail sales into Minnesota or retail sales totaling more than 100,000 dollars. The combined state rate is 6.875 percent under section 297A.62. Confirm registration with the Department; this is not tax advice.

Can I call my offer free shipping if the fee still shows up?

The statute requires the fee to be charged in addition to any other delivery fee when you collect it, so a shipping discount does not remove it. Say in the banner what is free and what is not, and keep the fee as its own line. This is not legal advice.

Minnesota's 100 dollar delivery fee trigger and how to build cart tiers around it

Minnesota puts a fee on a delivery, not on a sale, and the fee starts at a round number that cart tiers love. The statute imposes 50 cents on each transaction that equals or exceeds 100 dollars before sales tax, once per transaction no matter how many boxes ship, and the Department of Revenue's page says clothing counts toward the 100 dollars even though clothing itself is exempt from the state sales tax. Retailers with less than 1,000,000 dollars in Minnesota retail sales in the previous calendar year are excluded. That makes Minnesota a place where the spend level of your cart discount can matter for compliance as well as for margin, and where an apparel store that charges no sales tax can still owe a delivery fee. This page lays out the rule, the questions the statute leaves open and a tier plan that keeps them separate.

Updated October 10, 2026 · 13 sourced facts

Photo: McGhiever, CC BY-SA via Wikimedia Commons

A cart tier plan built around the 100 dollar delivery fee line

Before you design the tiers
Check the exclusion first. A store with less than 1,000,000 dollars in Minnesota retail sales in the previous calendar year is excluded from the fee, so for it the 100 dollar line is only a margin question. Above that, the fee is yours to pay or to pass on, and your tiers should know where it starts.
Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.05
When you pick the first tier
Treat 100 dollars before tax as a line the statute draws, not your tier. The statute defines the threshold before sales tax and says nothing about discounts or coupons, so ask the Department whether a cart discount lowers the amount that is tested before you place a tier at 100 dollars, and until you have an answer keep your first tier well away from the line.
Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes chapter 168E (sections 168E.01 and 168E.03)
If you sell apparel
Do not read the clothing exemption as a fee exemption. Clothing is exempt from the sales tax, but the Department's page says it counts toward the 100 dollar threshold and is subject to the fee, so a clothing-only cart of 120 dollars owes no sales tax and still crosses the line.
Source: Minnesota Department of Revenue: Retail Delivery Fee (last updated May 14, 2026)
When you write the banner
A free shipping banner and the fee can sit side by side, because the statute says the fee is charged in addition to any other delivery fee and appears as its own line labeled road improvement and food delivery fee. Say what free covers, and decide in advance whether you collect the fee from the buyer or absorb it, since collecting it is optional.
Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.03
For local customers
Offer a pickup tier. Pickup at your place of business, including curbside, is not a retail delivery, so the fee does not apply, and a pickup order can carry a gift or discount without the delivery line in the cart.
Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.01
Aug. 26 to Sept. 6, 2027
Run a tiered offer for the twelve days of the State Fair, set the first tier by your own cost math, and end it on Labor Day, Sept. 6, the fair's last day. Add the 50 cents to your cost per delivered order if you absorb the fee.
Source: Minnesota State Fair

Build it with the Cart discount tiers template.

Requires: Growth plan or higher.

Start free

Questions merchants ask

How much is Minnesota's retail delivery fee and when does it apply?: The statute sets the fee at 50 cents on each transaction that equals or exceeds 100 dollars before sales tax, charged once per transaction regardless of the number of shipments. The Department's page says the fee covers taxable goods and clothing, leaves food out of the 100 dollar count and excludes pickup at the retailer's location. This is not tax advice; confirm with the Minnesota Department of Revenue.
Does the fee apply if my store is small?: Not if the store made retail sales totaling less than 1,000,000 dollars in the previous calendar year, according to section 168E.05. Over that line, the retailer owes the fee and may, but does not have to, collect it from the buyer. Confirm your own case with the Department.
Is clothing taxed in Minnesota, and does the delivery fee apply to it?: Clothing is exempt from the sales tax under section 297A.67, subdivision 8, except accessories and equipment, sports or recreational equipment, protective equipment and fur clothing. The Department's page says clothing still counts toward the 100 dollar delivery fee threshold and is subject to the fee.
Do I have to collect Minnesota sales tax from outside the state?: Section 297A.66 treats an out-of-state retailer as regularly soliciting Minnesota sales if it solicits through a listed channel, such as a website accessible from Minnesota, and in the prior 12 months made 200 or more retail sales into Minnesota or retail sales totaling more than 100,000 dollars. The combined state rate is 6.875 percent under section 297A.62. Confirm registration with the Department; this is not tax advice.
Can I call my offer free shipping if the fee still shows up?: The statute requires the fee to be charged in addition to any other delivery fee when you collect it, so a shipping discount does not remove it. Say in the banner what is free and what is not, and keep the fee as its own line. This is not legal advice.

The year at a glance

Dates to plan around

Aug 26, 2027 to Sep 6, 2027Minnesota State FairMinnesota State Fair

Shipping into the state

Minnesota covers 79,627 square miles of land, and the delivery fee follows the order, not the distance: 50 cents once per transaction at 100 dollars or more before tax, in addition to any other delivery fee. Pickup at your own location is outside the fee, and a store under the 1,000,000 dollar line is excluded. If you have a Minnesota location, a local pickup tier avoids the fee entirely, and Mall of America's own figure of 32 million yearly visitors shows how much in-person retail the state has.

Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes chapter 168E (sections 168E.01 and 168E.03)

Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.01

Source: Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.05

Facts and sources

Minnesota Statutes section 168E.03 imposes a fee on each retailer equal to 50 cents on each transaction that equals or exceeds the threshold amount, and section 168E.01 defines the threshold amount as 100 dollars before sales tax and local taxes, excluding exempt items.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes chapter 168E (sections 168E.01 and 168E.03) (accessed October 10, 2026)
The statute says the fee is imposed once per transaction regardless of the number of shipments, so a cart that ships in three boxes carries one 50 cent fee.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes chapter 168E (section 168E.03) (accessed October 10, 2026)
A retail delivery under the statute covers tangible personal property subject to the sales tax and clothing as defined in the sales tax exemption, and the Department's page says clothing counts toward the 100 dollar threshold and is subject to the fee even when it is not taxable, while food is left out of the threshold.
Minnesota Department of Revenue: Retail Delivery Fee (last updated May 14, 2026) (accessed October 10, 2026)
The retailer may, but is not required to, collect the fee from the purchaser; if it does, the fee must be charged in addition to any other delivery fee and shown as a separate item on the receipt or invoice labeled road improvement and food delivery fee.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.03 (accessed October 10, 2026)
Section 168E.05 excludes a retailer that made retail sales totaling less than 1,000,000 dollars in the previous calendar year from the fee and from the chapter's requirements.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.05 (accessed October 10, 2026)
Pickup at the retailer's place of business, including curbside pickup, is not a retail delivery under section 168E.01, so a local pickup order does not carry the fee.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 168E.01 (accessed October 10, 2026)
Section 297A.67, subdivision 8 says clothing is exempt from the sales tax and defines clothing as all human wearing apparel suitable for general use.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 297A.67, subdivision 8 (accessed October 10, 2026)
The same subdivision says clothing does not include clothing accessories or equipment, sports or recreational equipment, protective equipment or fur clothing, so a store selling those items cannot treat them as exempt apparel.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 297A.67, subdivision 8 (accessed October 10, 2026)
Section 297A.62 imposes a 6.5 percent sales tax and an additional 0.375 percent that the statute says expires July 1, 2034, and the statute applies the two together as the combined rate, which is 6.875 percent.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 297A.62 (accessed October 10, 2026)
Section 297A.66 treats a retailer outside Minnesota as regularly or systematically soliciting sales in the state if it solicits through any listed channel, which includes a website accessible from Minnesota, and in the prior 12 months made or facilitated 200 or more retail sales to Minnesota destinations or retail sales totaling more than 100,000 dollars.
Minnesota Office of the Revisor of Statutes: Minnesota Statutes section 297A.66, subdivision 1 (accessed October 10, 2026)
The Minnesota State Fair's site lists the 2027 fair as Aug. 26 to Labor Day, Sept. 6, and its trademark line reads "Twelve Days of Fun Ending Labor Day".
Minnesota State Fair (accessed October 10, 2026)
Mall of America says it opened on Aug. 11, 1992, with 330 stores, and says 32 million people visit the mall each year.
Mall of America: About (accessed October 10, 2026)
Minnesota has 79,627 square miles of land area.
U.S. Census Bureau: State Area Measurements (2010) (accessed October 10, 2026)

Cities in Minnesota

MinneapolisMinneapolis stacks county, transit, city and metro taxes to 9.025 percent this quarter. See how they reach a delivery and how to run a single code offer.

Not tax advice. Confirm current rules with the state revenue department before you rely on a date or an exemption.

Run the Minnesota plan in Freebies Engine by Log Studio Lab.