Rates last verified: September 4th, 2026
Sources: Minnesota Department of Revenue; Minnesota Department of Public Safety; Minnesota Statutes. Full citations at the bottom of this page.
Minnesota's telecom regime has two layers. The first is the general sales tax: 6.875% at the state level, plus local rates that apply based on where the customer receives the service, on telecommunications services, ancillary services, and pay television. The second is a stack of per-line monthly fees, $0.96 combined as of April 1, 2026, that funds 911, the 988 Suicide and Crisis Lifeline, services for people who are deaf or hard-of-hearing, and phone assistance for low-income households. The fees are not subject to the sales tax when separately stated, and each one has its own statute, rate setter, and prepaid rule.
Quick Facts
| Item | Minnesota Treatment |
|---|---|
| State sales tax | 6.875% on telecommunications and ancillary services (Department of Revenue, Taxes and Rates guide; Fact Sheet 119) |
| Local sales taxes | Added on top of the state rate based on the customer's location; the Department of Revenue publishes a rate calculator |
| 911 fee | $0.80 per month for each customer access line, in effect since October 1, 2021; the statute sets a 95-cent ceiling and no floor, and the commissioner of public safety sets it (Minn. Stat. 403.11) |
| 988 fee | $0.12 per month for each consumer access line of wireline, wireless, or IP-enabled voice service (Minn. Stat. 145.561) |
| Telecommunications Access Minnesota (TAM) fee | $0.04 per month per access line; the statute caps it at 20 cents and the Public Utilities Commission sets it (Minn. Stat. 237.52) |
| Telephone Assistance Plan (TAP) surcharge | $0.00 as of April 1, 2026; the statute caps it at 10 cents per access line and the Public Utilities Commission sets it (Minn. Stat. 237.70) |
| Prepaid wireless | Fees collected at retail instead: $0.80 E911, $0.04 TAM, and $0.12 988 per transaction, $0.96 total; sales tax applies on top |
| VoIP | Taxable as a telecommunications service (Fact Sheet 119) |
| Internet access | Not taxable when separately stated; federal law bars the tax (Fact Sheet 119) |
How Minnesota Taxes Telecom Services
Minnesota defines telecommunications services as the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. The state sales tax of 6.875% applies, plus local rates, and the services are taxable whoever sells them, a telephone company or anyone else. The base covers local and long-distance service, including international and 800 and 900 service, mobile telecommunications, postpaid and prepaid calling, private communication services, and Voice over Internet Protocol (VoIP), which Fact Sheet 119 names as taxable in so many words.
Ancillary services are taxable too: conference bridging, detailed telecommunications billing, directory services, vertical services such as caller ID and call waiting, and voice mail. The taxable sales price also sweeps in most invoice line items, including connection and disconnection charges, Federal Communications Commission fees, franchise fees, universal service fees, and surcharges. The exceptions the fact sheet carves out are separately stated 911, Telephone Assistance Plan (TAP), and Telecommunications Access Minnesota (TAM) charges, and federal excise tax imposed directly on the consumer.
Some things stay out of the base. Internet access charges are not taxable when separately stated, and providers who bundle internet access with taxable service may deduct the access portion if their books reasonably identify it, because federal law bars Minnesota from taxing internet access. Data processing and information services fall outside the definition when the buyer's primary purpose is the processed data. Purchases for resale, including telecom a provider buys as a component of a service it sells at retail, are exempt with Form ST3, the state's exemption certificate. Machinery and equipment a provider uses directly to deliver services sold at retail are also exempt.
Sourcing decides which local rates stack on the 6.875%. Mobile telecommunications, ancillary services, and anything not billed call by call are taxed at the customer's place of primary use, meaning the residential or primary business street address. Call-by-call charges follow origination and termination rules, and private communication services are prorated across jurisdictions by the number of customer channel termination points in each.
911 And Other Per-Line Fees
Minnesota stacks four monthly fees on each line, and the Department of Public Safety's Emergency Communication Networks division collects them from providers. The 911 fee is $0.80 per month for each customer access line, unchanged since October 1, 2021. Minnesota Statutes 403.11 sets a ceiling of 95 cents and no floor, and lets the commissioner of public safety set the amount within that limit. The fee reaches wireless, wireline, and packet-based services capable of originating a 911 call.
Three companion fees follow. The 988 fee, $0.12 per month, funds the 988 Suicide and Crisis Lifeline and applies to each consumer access line of wireline, wireless, or IP-enabled voice service. The Telecommunications Access Minnesota fee, $0.04 per month with a 20-cent statutory cap, funds telecommunications relay services for people who are deaf, deafblind, or hard-of-hearing, and the Public Utilities Commission sets it. The Telephone Assistance Plan surcharge, capped at 10 cents and also set by the commission, funds phone credits for low-income households eligible for the federal Lifeline discount; the Department of Public Safety's fee schedule lists it at $0.00 as of April 1, 2026. The combined stack is $0.96 per line, per month, remitted by the 25th of the month after collection.
Prepaid wireless pays at the register instead. Sellers collect $0.80 E911, $0.04 TAM, and $0.12 988 fees, $0.96 total, on each retail transaction, remit them to the Department of Revenue on their sales tax returns, and keep 3% as compensation. A small amount of airtime bundled with a device, up to 10 minutes or $5, is exempt from the fees. Sales tax still applies to the prepaid service itself.
Taxability By Service Type
- Local, long-distance, international, and 800 and 900 telephone service: taxable at 6.875% plus local rates.
- Mobile telecommunications, including cellular, paging, and roaming charges: taxable, sourced to the customer's place of primary use.
- Voice over Internet Protocol: taxable as a telecommunications service.
- Ancillary services, including conference bridging, detailed billing, directory services, vertical services, and voice mail: taxable.
- Prepaid calling and prepaid wireless: taxable, with the E911, TAM, and 988 fees collected per retail transaction.
- Private communication services: taxable, prorated across jurisdictions by customer channel termination points.
- Internet access: not taxable when separately stated; federal law bars the tax.
- Data processing and information services: not taxable when the buyer's primary purpose is the processed data.
- Separately stated 911, TAP, and TAM charges: not subject to sales tax.
- Sales for resale, including telecom bought as a component of a retail service: exempt with Form ST3.
How CereTax Handles Minnesota
Minnesota's difficulty is the stacking. Every invoice needs the right local rates for the customer's place of primary use or call path, a base that pulls in ancillary services and pass-through fees while leaving out separately stated internet access and per-line fees, and a $0.96 fee stack whose pieces change on different schedules under four different statutes. CereTax assigns each charge to the right jurisdiction at the rooftop level, applies Minnesota's base rules by service type, and keeps an audit trail behind every calculation. If you serve customers in Minnesota, book a demo and bring a real invoice.
For the full evaluation checklist, see what a telecom tax engine should do.
Sources
- Minnesota Department of Revenue, Sales Tax Fact Sheet 119, Telecommunications, Pay Television, and Related Services (revised January 2024). Accessed August 28, 2026.
- Minnesota Department of Revenue, Sales and Use Tax Business Guide, Taxes and Rates. Accessed August 28, 2026.
- Minnesota Department of Revenue, Prepaid Wireless E911, TAM, and 988 Fees. Accessed August 28, 2026.
- Minnesota Department of Public Safety, Emergency Communication Networks, Service Provider and Telephone Fees. Accessed August 28, 2026.
- Minnesota Statutes § 403.11, 911 fee. Accessed August 28, 2026.
- Minnesota Statutes § 237.52, Telecommunications Access Minnesota fund. Accessed August 28, 2026.
- Minnesota Statutes § 237.70, Telephone Assistance Plan. Accessed August 28, 2026.
- Minnesota Statutes § 145.561, 988 fee. Accessed August 28, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the telecom tax by state hub.
Note: Always confirm current rates and filing obligations directly with the state’s DOR, PUC, or 911 authority before applying charges or remitting payments.
