Minnesota has a 6.875% state sales tax, plus local taxes that vary by city and county

Minnesota's state sales tax rate is 6.875%. On top of that, most cities and counties add their own local sales tax, which ranges from 0.5% to 2.5% depending on where you shop. Your total sales tax bill depends on your location—a purchase in Minneapolis will have a different tax rate than the same purchase in a small town 50 miles away.

The state tax applies to most goods you buy in stores, online, and by mail order. Local taxes are added at checkout based on the address where the item is delivered or picked up, not where you live. If you order something online to be shipped to your home in Duluth, you pay Duluth's combined rate. If you pick it up at a store in St. Paul, you pay St. Paul's rate instead.

Key Takeaways

  • Minnesota's state sales tax is 6.875%, and most cities and counties add 0.5% to 2.5% on top of that, making your total rate between 7.375% and 9.375%.
  • Groceries, prescription medications, and medical devices are exempt from sales tax in Minnesota.
  • Clothing and shoes under $100 per item are exempt; items $100 or more are taxed on the full price.
  • You pay sales tax based on where the item is delivered or picked up, not where you live.
  • Services like haircuts, repairs, and labor are generally not taxed, but the materials used in those services may be.

What's exempt from Minnesota sales tax

Minnesota exempts several categories of purchases from sales tax. Groceries—food you cook at home, including meat, produce, dairy, and bread—are not taxed. Restaurant meals and prepared foods are taxed. Candy, soda, and other beverages are also taxed, even if you buy them at a grocery store.

Prescription medications and medical devices like hearing aids, wheelchairs, and diabetic supplies are exempt. Over-the-counter medications like pain relievers and cold medicine are taxed. If you are unsure whether a specific item qualifies, ask the pharmacist or check your receipt—exempt items should show zero tax.

Clothing and shoes under $100 per item are exempt from sales tax. A pair of shoes priced at $89 is tax-free. A winter coat priced at $150 is taxed on the full $150. Accessories like belts, hats, and gloves are taxed regardless of price. Clothing for animals is also taxed.

How local sales tax rates work in your area

Minnesota allows cities and counties to set their own local sales tax rates within state limits. The state collects the 6.875%, and local governments collect their portion separately. You cannot avoid local tax by shopping in a neighboring city—the tax is based on delivery or pickup location, not the store's location.

Some counties have no local sales tax at all, while others have rates as high as 2.5%. The Twin Cities area (Hennepin, Ramsey, and Dakota counties) typically has rates between 8.375% and 8.625%. Greater Minnesota varies widely. To find your exact rate, search "[your city] Minnesota sales tax" or ask a cashier at checkout.

Services and labor are usually not taxed

Most services are not subject to sales tax in Minnesota. A haircut, car repair, plumbing work, or house cleaning is not taxed. However, if the service includes materials—like paint for a wall or parts for a car—the materials themselves may be taxed depending on how the bill is written.

Some services have exceptions. Telecommunications services (phone and internet) are taxed. Lodging at hotels and short-term rentals is taxed. If you are paying for a service and want to know whether tax applies, ask the business before you pay.

Sales tax on online and mail orders

Online retailers must collect Minnesota sales tax on orders shipped to Minnesota addresses. This applies whether you buy from a Minnesota company or an out-of-state company. The tax rate is based on the delivery address, not the seller's location. If you order from a national retailer and have it shipped to your home in Rochester, you pay Rochester's combined sales tax rate.

Some older online retailers may not collect Minnesota tax automatically, but you are still legally responsible for paying it. This is uncommon with large retailers, which have systems in place to collect tax by state. If you notice tax was not charged on an order that should have been taxed, contact the retailer to ask why.

Sales tax on vehicles and special items

Cars, trucks, and motorcycles are subject to sales tax in Minnesota. The tax is calculated on the purchase price and is usually collected by the dealer or private seller at the time of sale. When you register the vehicle with the Minnesota Department of Public Safety, you will need to show proof that sales tax was paid.

Boats, snowmobiles, and all-terrain vehicles are also taxed. Fuel for vehicles is taxed separately at the pump—Minnesota's gas tax is separate from sales tax. Electricity and natural gas used in homes are not subject to sales tax, though they may have other utility taxes.

How to understand your receipt

Your receipt shows the subtotal (before tax), the sales tax amount, and the total. The tax line should list the combined state and local rate. If you bought an exempt item like groceries, that line should show $0.00 tax. If you bought a mix of taxed and exempt items, the tax is calculated only on the taxed portion.

If you believe you were charged tax on an exempt item, keep your receipt and contact the store. Mistakes happen, and most retailers will refund the tax if you can show the item should have been exempt. For large purchases or if you have questions about whether something should be taxed, ask the cashier before you pay.

Frequently Asked Questions

Do I pay sales tax on clothes if I buy them online?

Yes, if the item is shipped to a Minnesota address. The tax rate is based on your delivery address. Clothing under $100 per item is exempt from Minnesota sales tax, so a $75 shirt shipped to Minnesota should not be taxed. If tax was charged, contact the retailer to report the error.

Is there sales tax on groceries at all stores?

Groceries are exempt at any store—supermarkets, farmers markets, and online grocery services. However, prepared foods, hot foods, and restaurant meals are taxed. If you buy a rotisserie chicken from a grocery store deli, it is taxed. If you buy raw chicken to cook at home, it is not.

What if I buy something in Minnesota and take it to another state?

You pay Minnesota sales tax at the point of purchase, based on the store's location or your delivery address. Once you leave Minnesota, that tax is done. You may owe tax in the other state depending on that state's rules, but Minnesota tax does not follow you.

Do I have to pay sales tax on used items?

Sales tax applies to used goods sold by businesses, including used cars, used furniture, and used electronics from a store. Private sales between individuals are generally not taxed. If you sell a used item to a friend, no sales tax is involved. If you sell it to a used goods store or pawn shop, tax may explore depending on the transaction.

Is there sales tax on haircuts and salon services?

No. Haircuts, hair coloring, and salon services are not taxed in Minnesota. However, if you buy hair products at the salon to take home, those products are taxed. Ask your stylist to separate the service charge from the product charge on your receipt if you want to see the breakdown.