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.