Withholding tax applies to almost all payments made to employees for services they provide for your business. You will need a Minnesota Tax ID Number and an active withholding tax account.It is due April 15 for all taxable purchases made within the previous calendar year. You must register to collect sales tax if you make taxable retail sales in Minnesota. This tax is in addition to the 6.875 percent state sales tax,. Laws, cases, and web sources on property tax law, with links to forms for applying for property tax exemptions, deferrals, abatements, and land classification. The Minnesota Department of Revenue currently administers several local sales and use taxes. You must withhold Minnesota income tax from any compensation you provide them, including cash, goods, or services in exchange for working. Overview of Minnesota Taxes. Minnesota has a progressive income tax with rates that are among the highest in the nation.