Minnesota Sales Tax Calculator

What Is the Sales Tax Rate in Minnesota?

Minnesota charges a 6.875% state sales tax on most purchases. On top of that, cities, counties, and special taxing districts can each layer on their own local rate. In much of the Minneapolis-St. Paul metro, those add-ons push the combined total to roughly 7.5% to 8% or more, noticeably above the base state rate.

USACalculator built this Minnesota version because the rate you actually pay depends on where you're standing at checkout, not just the state's base number. Pick your city below and the calculator applies the right combined rate automatically, saving the guesswork that comes with trying to remember which local add-ons apply where.

Using the Calculator

Minnesota is preselected in the dropdown with a representative combined rate. Enter the price of what you're buying, or swap in your own city's exact combined rate if you know it, and the total updates immediately. Planning a bigger purchase, like a vehicle? Minnesota taxes those separately through our Minnesota Car Loan Calculator, which factors in the state's motor vehicle sales tax instead. Comparing the combined rate for two different Minnesota cities side by side can reveal a meaningful difference on a large purchase before you commit to where you'll actually buy it.

How the Calculation Works

The formula is straightforward: multiply your purchase price by the combined tax rate to get the tax owed, then add that to the original price for your total. The combined rate blends the 6.875% state rate with whatever local and special district rates apply at the sale location, which is why two stores a short drive apart can post different totals on the receipt. Larger purchases magnify small rate differences into real dollar amounts, which is exactly when a quick calculation like this earns its keep.

Minnesota-Specific Sales Tax Information

State Sales Tax

The base rate is 6.875% statewide, set by the Minnesota Department of Revenue and applied to most tangible goods and many services. This base rate is the floor everywhere in the state, and no city or county can charge less than it, only add to it.

Local Sales Tax

Cities and counties across Minnesota can add their own local sales tax, and several areas within the Twin Cities metro carry extra special taxing district rates that fund transit and regional projects. Combined rates in those areas commonly land around 7.5% to 8% or slightly higher, while many smaller towns sit closer to the base state rate. A shopper crossing from one city to a neighboring one can genuinely see a different total on an otherwise identical receipt.

Combined Rate

Your exact combined rate depends on the specific address where a sale takes place. Retailers are required to charge the rate tied to that location, so it's worth checking the rate for your own city rather than assuming the statewide base applies everywhere. A quick rate lookup on the Minnesota Department of Revenue's site is the most reliable way to confirm an exact figure for a specific delivery or business address.

Tax Exemptions

Most unprepared grocery food, prescription drugs, and many over-the-counter medications are exempt from Minnesota sales tax. Clothing carries a standing year-round exemption in Minnesota, a notable difference from states that only exempt clothing during a short seasonal holiday. Certain manufacturing equipment and agricultural supplies carry business exemptions as well.

Services and Sales Tax

Minnesota taxes a range of services beyond just tangible goods, though the rules for which services qualify differ from the rules that apply to physical products. A landscaping service and a legal service, for example, can be treated differently under state guidance, so a business owner charging for services should confirm the specific category before assuming a rate applies.

Minnesota Compared to Neighboring States

Minnesota's base and typical combined rates land in a middle range next to neighboring states, some of which run higher and some lower. Border-area shoppers sometimes notice the difference on big-ticket items, though the comparison depends heavily on which specific city or county sits on each side of the state line.

How Businesses Handle Minnesota Sales Tax

A business selling taxable goods or services in Minnesota generally registers with the Minnesota Department of Revenue for a sales tax permit before making sales. From there, the business collects tax at the correct combined rate for each sale's location and remits it to the state on a filing schedule tied to sales volume. If a seller undercharges by using the wrong rate, the business generally still owes the correct amount to the state, which makes accurate rate lookups a real financial issue for sellers, not just a convenience for shoppers.

Use Tax on Out-of-State Purchases

Minnesota also applies a use tax, a companion to sales tax, on taxable items bought without paying Minnesota sales tax, often from an out-of-state seller that doesn't collect it. Consumers technically owe that use tax directly to the state on their own return, at the same rate that would have applied at a local checkout. Most everyday shoppers rarely encounter it directly, but it becomes relevant for larger purchases made while traveling or from smaller online sellers outside Minnesota's collection requirements.

How Combined Rates Vary Across Minnesota Cities

Combined sales tax rates shift noticeably depending on where a purchase happens. Minneapolis and St. Paul both carry city-level add-ons on top of the state and county rates, plus regional transit district taxes that apply across much of the metro. Smaller Greater Minnesota cities often skip those extra district layers, landing closer to the state's 6.875% base with just a county rate added. Duluth, Rochester, and other regional centers sit somewhere between the two, each with their own local rate that's worth checking directly rather than assuming a single number applies statewide.

Example Calculation

Say you're buying a $250 item in a part of the Twin Cities metro where the combined rate sits at 7.875%. The math looks like this, worked out step by step:

Buy the same item in a smaller Minnesota town with fewer local add-ons, and the total drops closer to the 6.875% base, even though the state rate itself never changes.

Why Minnesotans Use This Calculator

Shoppers use it to check a receipt against what they expected to pay. Small business owners use it to quote accurate out-the-door prices to customers across different counties and metro districts. People budgeting a big-ticket purchase, like furniture or electronics, run the numbers here first, then move on to our Minnesota Mortgage Calculator or Minnesota Paycheck Calculator to see how it fits into the rest of their monthly budget. Online sellers new to Minnesota's economic nexus rules use it to double-check that a quoted rate matches the buyer's actual delivery address.

Common Mistakes to Avoid

• Assuming the whole state pays the same combined rate. Twin Cities metro districts often charge more than smaller towns.
• Forgetting that vehicle purchases use a separate motor vehicle sales tax, not the general rate.
• Treating grocery exemptions as covering restaurant meals or prepared hot food, which usually stay taxable.
• Overlooking that clothing is exempt year-round in Minnesota, unlike states that only exempt it during a holiday window.
• Forgetting that use tax can apply to untaxed out-of-state purchases, not just items bought inside Minnesota.
• Assuming every service is taxed the same as goods, when the rules for services differ in meaningful ways.

Frequently Asked Questions

What is the Minnesota sales tax rate?

The state rate is 6.875%. Local and special district add-ons can push the combined total to roughly 7.5% to 8% or more in parts of the Twin Cities metro.

Does Minnesota tax groceries?

No, most unprepared grocery food is exempt. Prepared food and restaurant meals are generally still taxed.

Is there a sales tax holiday in Minnesota?

No broad annual holiday exists. Instead, certain categories like clothing carry a standing exemption throughout the year.

How much local sales tax can be added in Minnesota?

It varies by city, county, and special taxing district, commonly pushing combined totals to around 7.5% to 8% or higher in parts of the Twin Cities metro.

Is clothing taxed in Minnesota?

No. Most clothing is exempt from Minnesota sales tax year-round, not just during a limited seasonal window.

Does Minnesota charge sales tax on online purchases?

Yes, when the seller meets the state's economic nexus threshold, the same tax applies as it would in a physical store.

Why do sales tax rates vary by city in Minnesota?

Because cities, counties, and special taxing districts each set their own local add-on, so the combined rate shifts from one address to the next.

Are prescription drugs taxed in Minnesota?

No. Prescription and most over-the-counter drugs are exempt from Minnesota sales tax.

How is Minnesota sales tax calculated on a car purchase?

Vehicles generally use Minnesota's separate motor vehicle sales tax, calculated on the purchase price rather than the general sales tax rate.

Why does the Twin Cities metro have higher combined sales tax?

Special taxing districts fund transit and regional projects across the Minneapolis-St. Paul area, adding to the base city, county, and state rates.

How does Minnesota sales tax compare to neighboring states?

Rates sit in a middle range compared to nearby states, though the exact comparison depends on the specific cities or counties involved.

Do services get taxed in Minnesota the same way as goods?

Not always. Many services are taxable, but the rules differ from those covering tangible goods, so specific categories are worth checking.

How do businesses register to collect Minnesota sales tax?

Generally through the Minnesota Department of Revenue for a sales tax permit, then filing and remitting collected tax on a set schedule.

What happens if a Minnesota business undercharges sales tax?

The business typically still owes the correct amount to the state, regardless of what was actually collected from the customer.

Related Calculators

Pair this with the Minnesota Paycheck Calculator to see your full take-home picture, or the Minnesota Car Loan Calculator when motor vehicle tax applies instead of the general rate. Explore more free tools at USACalculator.

Sources: Minnesota Department of Revenue. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not tax advice — confirm exact rates for your address with the Department of Revenue.