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Cannabis Business Tax Payments

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Before making a tax payment, cannabis businesses must have a Minnesota Tax ID Number and file a tax return. Cannabis businesses may be required to pay taxes electronically unless they have an electronic payment waiver.

Questions about tax payments?
If you need help or have questions about paying taxes as a cannabis business, use our Cannabis Tax help form.

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A Minnesota Tax ID is a seven-digit number used to report and pay Minnesota business taxes.

A Sales and Use Tax account allows you to file and pay sales and use taxes, including Cannabis Tax. To add the Cannabis Tax line to your return, see Add Local Tax and Other Taxes to a Sales and Use Tax Return.

Before you make any taxable sales in Minnesota, you must register for both. For requirements and registration information, visit:

Note: Once you register, you also need to finish setting up your e-Services account. For details, go to e-Services Information.

File a Return [+]

Your cannabis business may be subject to different types of taxes, and filing requirements for each one may vary. Here is information on how to file necessary tax returns:

Cannabis Tax and Sales Tax (filed on same return)
Corporation Franchise, Partnership, and S Corporation Taxes
Individual Income Tax
Withholding Tax

Note: This is not a comprehensive list. You may be required to file other taxes not listed here.

Electronic Payment Requirement and Waiver [+]

Many businesses are required to pay taxes electronically to avoid an additional payment penalty that may be applied to the tax owed.

Cannabis businesses that are unable to secure banking services can submit Form CW1, Electronic Payment Waiver for Cannabis Businesses, to waive the payment method penalty. (Form CW1 is coming soon and will be available here.)

If you have a business banking account, you must pay electronically and are not eligible for the waiver.

Make a Payment [+]

You can make tax payments online, from your bank account, or in person.

Note: If you're required to make electronic payments and you pay non-electronically, you will receive a penalty unless you complete the electronic payment waiver.

Electronic Payments

These methods meet the electronic payment requirement.

Bank Account (through e-Services)

You may make an electronic payment directly from your bank account through our e-Services system. You must use a United States bank account. To begin, log in to e-Services.

Your payment is considered received on the Payment Date listed on your confirmation page. Most payments take 3 to 7 days to process. Contact us if your payment has not processed within 10 days. 

ACH Credit

You may request an Automated Clearing House (ACH) credit, typically through your bank's online bill paying platform. Some banks charge a fee for this service.

For details, go to Paying by ACH Credit.

Non-Electronic Payments

These methods do not meet the electronic payment requirement. You will receive a penalty unless you complete the electronic payment waiver.

Cashier’s Check or Money Order

You must include a payment voucher to pay by check or money order. Use the Payment Voucher System to print a voucher.

Cash

We only accept cash payments in person at the Minnesota Department of Revenue main office, at 600 N. Robert St., St. Paul, MN 55101. For parking, transit, and other details, go to Directions and Parking

If you are paying by cash, you must schedule an appointment with us by calling 651-282-5225 or 1-800-657-3605.

Potential Penalties [+]

If you do not file or pay your taxes on time, you may owe penalties and interest.

We will send you a notice if we do not receive your return or payment. If you have questions or believe we made an error, call us immediately. Use the number listed on the notice or refer to our Contact Us page. We will work with you to get your account current.

The following table shows the most common penalties. For details about other penalties and interest rates, go to Penalties and Interest for Businesses.

Type of Penalty	Amount of Penalty	How to Avoid This Penalty
Payment Method	5% of the non-electronic payment	Make your payments electronically or complete Form CW1, Electronic Payment Waiver for Cannabis Businesses
Late Filing	5% of any tax that is not filed by the regular due date	File your returns by the due date or extended due date (if you have a filing extension)
Late Payment	5% to 15% of any tax that is not paid by the regular due date (rate depends on how late the payment is made)	Pay your tax in full by the due date, even if you have a filing extension

Collection Information [+]

If you do not file or pay your overdue taxes by the due date on our notices, bills, or letters, we can take legal action to collect your tax debt. For full details, go to Collection Actions.

Cannabis Posting

The Cannabis Posting List contains businesses that cannot purchase cannabis products for resale. If businesses are late paying taxes, we will place them on this list. For more information, go to Cannabis Posting.

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Last Updated

April 11, 2025

Cannabis Business Tax Payments

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