Skip to content
Tax Highlighter

Tax Rate Change for MinnesotaCare Taxes in 2023

January 5, 2023

The new tax rate will drop from 1.8% in 2022 to be 1.6% in 2023 for the Provider, Hospital, Surgical Center, Wholesale Drug Distributor, and Legend Drug Use Taxes.
The new rate will apply to:
  • Taxable gross revenues subject to Provider, Hospital, Surgical Center, or Wholesale Drug Distributor Tax that you receive starting January 1, 2023
  • The price you paid for legend drugs subject to Legend Drug Use Tax that you deliver or receive in Minnesota starting January 1, 2023
Why is the tax rate changing?
Revenue from MinnesotaCare taxes is deposited into Minnesota’s Health Care Access Fund. If certain conditions are met during the fund’s annual review, the tax rate must be reduced for the following year. For more information, refer to Minnesota Statutes 295.52, subdivision 8 or reach out to our team for more information.


Meet the Expert

Matt Ringwelski, CPA

Matt helps his clients incorporate best practices like cash flow management, budgeting, and tax planning into their daily operations.

Contact via email
Connect on LinkedIn

Looking for more?

Find more insights & resources

Discover More

2023 Standard Mileage Rate Update

The IRS has issued the 2023 optional cents-per-mile rates used...

FSA & 401(k) Contributions for 2023

The IRS has announced contribution updates for both 401(k) plans...

Scroll To Top