Running a service business in Minnesota

IntelliDrive OS is point-of-sale, quoting, inventory and customer software for service businesses such as locksmiths, plumbers, HVAC companies and electricians. This page collects the tax and licensing facts for Minnesota that those businesses ask about, each linked to the official source we read, and shows how IntelliDrive OS fits them.

Last checked October 4, 2026

What is the sales tax in Minnesota?

State rate: 6.875%

The state sales tax rate in Minnesota is 6.875%.

The Department of Revenue says sellers combine the 6.875% state general rate with all applicable local tax rates (local taxes, special local taxes and special taxes) and apply the total to the taxable sales price. Its quarterly rate guides list local rates, and its Sales Tax Rate Calculator gives the combined rate for an address.

Repair, installation and labor

Minnesota's Fact Sheet 152 says repair labor is not taxable if the labor is separately stated from parts or materials on the invoice, while charges to install a taxable item are taxable even if separately stated. Labor to permanently attach an item to real property is construction labor and is not taxable.

Who licenses locksmiths and the trades in Minnesota?

From each agency's own page. Check with your city or county for any local license as well.

Locksmiths

We could not confirm a state-level locksmith license for Minnesota from an official source. Check with your city or county.

Plumbing: Minnesota Department of Labor and Industry — Construction Codes and Licensing

The Department of Labor and Industry licenses plumbers and plumbing contractors, and businesses that contract to provide plumbing services must have a plumbing contractor license.

Electrical: Minnesota Department of Labor and Industry — Construction Codes and Licensing

The Department of Labor and Industry licenses electricians and electrical and technology system contractors. Electrical work in Minnesota must be done by someone licensed by the Department or registered with it as a registered unlicensed electrician; individual licenses include journeyworker and master electrician.

More facts for Minnesota service businesses

Minnesota has no state license for mechanical contractors, but businesses must file a $25,000 mechanical contractor bond with the Department of Labor and Industry to contract for gas, heating, ventilation, cooling, air conditioning, fuel burning or refrigeration work.

The Department's contractor guide says that when invoicing improvements to real property, contractors pass along the sales or use tax paid on materials as part of the materials cost, do not itemize sales tax separately and do not charge sales tax on construction contracts. Contractors must pay sales and use tax on the materials, supplies and equipment used to complete the contract.

Minnesota Revenue publishes its local sales and use tax rate guides quarter by quarter; the current guides cover October 1 through December 31, 2026.

How does IntelliDrive OS fit Minnesota’s tax and paperwork?

What the software does today, nothing more. It does not file your returns or give tax advice.

One tax rate per shop

Add your rates under Settings → Tax Rates, then choose each shop’s default rate under Settings → Outlets, so every shop charges its own local rate.

All features

Records kept digitally

Invoices, receipts, signatures and photos are kept digitally for your records, and you can send a receipt to the customer by email or text.

Payment-link evidence

Payment links through your own account

Text or email a payment link through your own QuickBooks Payments, Square or Stripe account. On a payment-link sale the record keeps the customer’s signature, the terms they accepted, IP address and device, photos, and location when their browser shares it.

Payment processing

Stock by shop and van

Each shop, and each van you set up as its own location, keeps its own stock, with reorder points, counts and exact transfers between locations.

Inventory

Your team, hours and commission

Time clock, timesheets, pay rates and per-technician commission reporting, with role permissions and staff limited to their own shop.

Workforce

QuickBooks Online, when you choose

Push sales and payments from IntelliDrive OS to QuickBooks Online. It is a one-way push that you start yourself.

QuickBooks integration

Scheduling and dispatch (add-on)

Scheduling, dispatch, live GPS and ETA texts come with the GetTimePad add-on at $199/month. It is not part of the $79 plan.

Scheduling

Our city pages in Minnesota

Minnesota questions, answered

What is the sales tax rate in Minnesota?

Minnesota’s state sales tax rate is 6.875%. The Department of Revenue says sellers combine the 6.875% state general rate with all applicable local tax rates (local taxes, special local taxes and special taxes) and apply the total to the taxable sales price. Its quarterly rate guides list local rates, and its Sales Tax Rate Calculator gives the combined rate for an address. Source: Minnesota Department of Revenue.

What does Minnesota’s tax guidance say about repair and labor charges?

Minnesota's Fact Sheet 152 says repair labor is not taxable if the labor is separately stated from parts or materials on the invoice, while charges to install a taxable item are taxable even if separately stated. Labor to permanently attach an item to real property is construction labor and is not taxable. Source: Minnesota Department of Revenue.

Who licenses plumbers and electricians in Minnesota?

Plumbing: the Minnesota Department of Labor and Industry — Construction Codes and Licensing. Electrical: the Minnesota Department of Labor and Industry — Construction Codes and Licensing. Source: Minnesota Department of Labor and Industry.

Can I set the Minnesota sales tax rate in IntelliDrive OS?

Yes. Add the rate under Settings → Tax Rates and choose it as the shop’s default under Settings → Outlets. IntelliDrive OS uses one tax rate per shop, so a business with shops in different tax areas sets a rate for each shop.

How much does IntelliDrive OS cost in Minnesota?

$79/month per business, billed monthly, the same everywhere in the US. New accounts have unlimited users. The first 30 days are free; a card is required at signup and the first charge is on day 31.

These facts summarize the official pages linked next to each one. Rates and rules change, so check the source before you rely on a fact. This is not legal or tax advice.

Last checked October 4, 2026.

Facts for other states

Run your Minnesota service business on IntelliDrive OS

$79/month per business, billed monthly, with unlimited users.

The first 30 days are free. A card is required at signup and the first charge is on day 31; cancel in Settings → Billing before then and you pay nothing.