Minnesota Form M3 — Partnership Return 2025-2026

Get the blank Form M3 (PDF)  ·  Checked line by line against the official Minnesota form, last verified October 14, 2026  ·  How we verify

What is Form M3?

Minnesota taxes the entire share of partnership income to the partner, whether or not it is distributed. The partnership itself pays only the minimum fee and any entity-level taxes: PTE tax, composite income tax for nonresident partners who elect it, or withholding for nonresident individual partners.

S corporations use Form M8. A single-member LLC files the return that matches its federal classification.

Who Must File Form M3?

File Form M3 if you are required to file federal Form 1065 and have Minnesota gross income. The partners include their shares on their own returns; the minimum fee is paid by the entity.

The PTE election is available to partnerships, LLCs and S corporations with one or more qualifying owners. Single-member LLCs that are not taxed as S corporations cannot file Schedule PTE. The election must be made by the due date or extended due date of the entity’s return, and the entity provides Schedule KPI to all partners.

Nonresident partners can participate in composite income tax (reported on line 3, with Schedule KPI) or have Minnesota income tax withheld (line 4, with Forms AWC where applicable). Nonresident individual partners whose entity-level tax fulfills their filing requirement may not need to file Form M1, unless they owe net investment income tax (Schedule NIIT) or have installment-sale gains.

Special situations: a final return, an LLC, installment sales of pass-through assets or interests, and tax position disclosure (Form TPD) are marked at the top of the return.

How to File Form M3

• Complete federal Form 1065 and Schedules K and K-1, and include a complete copy with the Minnesota return.
• Complete M3A (apportionment and minimum fee), then Form M3, then Schedule KPI for each partner.
• If electing PTE tax, complete Schedule PTE and Schedule PTE-RP, check the PTE box and enter the tax on line 2.
• Make estimated or extension payments electronically, by credit card or by check with a voucher created on the Department’s website.
• E-file or mail the return to the address below. Amend with Form M3X.

When Is Form M3 Due?

The Minnesota return and payment are due on the same date as the federal return and payment; if that date falls on a weekend or holiday, an electronic payment or postmark on the next business day is timely. All partnerships receive an automatic six-month extension to file if the tax payable for the year is paid by the regular due date, and the state date follows a longer federal extension. Four kinds of payments exist: extension, estimated tax, tax return and amended return payments.

Where to Mail Form M3

If you do not use the mailing label, mail your forms, with a complete copy of your federal Form 1065, Schedules K and K-1 and other federal schedules, to: Minnesota Partnership Tax, Mail Station 1760, 600 N. Robert St., St. Paul MN 55146-1760.

How to Complete Form M3 Line by Line

Top of the Return — Identification and Special Boxes

Enter the partnership’s name, federal ID number and Minnesota tax ID. Boxes at the top mark the pass-through entity tax election, more than 80% of income from farming, tax position disclosure (include Form TPD), a final return, LLC, and an installment sale of pass-through assets or interests.

Lines 1–5 — Minimum Fee and Entity-Level Taxes

Lines 6–12 — Credits Limited to the Minimum Fee

Lines 13–24 — Tax Due, Penalty, Interest and Refund

M3A — Apportionment and Minimum Fee

Every partnership completes M3A to determine its Minnesota-source income and minimum fee. It lists property (inventory, buildings and machinery, land and capitalized rents), payroll and sales inside Minnesota and everywhere, and computes the factors. The minimum fee on line 9 is carried to line 1 of Form M3.

Common Mistakes to Avoid

• Forgetting the federal attachments. Include a complete copy of federal Form 1065 and Schedules K and K-1.
• Missing Schedule PTE when electing. The election requires Schedule PTE and the PTE box.
• Not paying the extension tax. The extension covers filing only.
• Skipping estimated payments when the entity-level taxes will reach $500.
• Using M3 for an S corporation. It files Form M8.
• Not providing Schedule KPI to all partners after electing PTE tax.

Frequently Asked Questions

Who files Form M3? Entities required to file federal Form 1065 that have Minnesota gross income.

What is the minimum fee? A fee that applies when Minnesota property, payroll and sales total at least $1,250,000, determined on M3A.

Is there an extension? Yes, an automatic six-month extension to file if the tax payable is paid by the regular due date.

How does the PTE election work? Check the PTE box, complete Schedule PTE and enter the tax on line 2, by the due date or extended due date.

What is the PTE tax rate? The 2025 Schedule PTE multiplies the computed amount by 9.85%.

Where do I mail Form M3? Minnesota Partnership Tax, Mail Station 1760, 600 N. Robert St., St. Paul MN 55146-1760.

Final Review Before Filing

• Federal Form 1065 and K-1s are complete and a complete copy is attached.
• M3A is complete and the minimum fee is on line 1.
• Schedule PTE and the PTE box are completed if electing.
• Composite tax and withholding for nonresident partners are on lines 3 and 4.
• Schedule KPI is prepared for each partner.
• Extension and estimated payments are made by the regular due date.

General information from the official form and its instructions, not advice for your circumstances. See the full disclaimer.