Minnesota's statewide sales tax is 6.875 percent

Minnesota charges 6.875 percent sales tax on most retail purchases. This rate applies statewide, but many cities and counties add their own local sales tax on top of it. Your actual tax rate depends on where you buy the item, not where you live. A purchase in Minneapolis will have a different total rate than the same purchase in St. Paul or a rural area.

The state rate has been 6.875 percent since 2008. It does not change by season or by product category — the rate itself is fixed. What changes is what the tax applies to and what local additions are layered on top.

Key Takeaways

  • Minnesota's state sales tax is 6.875 percent, but your total rate is higher because cities and counties add local taxes ranging from 0.25 to 2.375 percent.
  • 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.
  • You can find your exact local rate by entering your address on the Minnesota Department of Revenue website or asking at checkout.

How local taxes raise your actual rate

Cities and counties in Minnesota layer additional sales tax on top of the state rate. These local rates range from 0.25 percent to 2.375 percent depending on the jurisdiction. A city might add 0.5 percent, and the county might add another 0.5 percent, bringing your total to 7.875 percent — even though the state rate itself is 6.875 percent.

The local rate is set by each municipality and can vary block by block in some cases. Two stores on opposite sides of a city border may charge different total tax rates. This is why the price you pay at checkout depends on the store's location, not yours.

The Minnesota Department of Revenue publishes a complete list of local rates by city and county on its website. You can also call your city or county assessor's office to confirm the rate for a specific address.

What is exempt from sales tax

Groceries are not taxed in Minnesota. This includes bread, milk, vegetables, meat, frozen food, and other items you buy at a grocery store to eat at home. Restaurant meals and prepared foods are taxed, but raw groceries are not.

Prescription medications and medical devices are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs are not. Medical equipment prescribed by a doctor — such as wheelchairs, hearing aids, or diabetic supplies — is exempt.

Clothing and shoes under $100 per item are exempt from Minnesota sales tax. A $75 pair of shoes is not taxed. A $120 pair of shoes is taxed on the full amount. This rule applies to each individual item, not to your total purchase.

Items that are always taxed

Electronics, furniture, appliances, and most household goods are taxed at your local rate. Gasoline, car parts, and vehicle services are taxed. Haircuts and salon services are taxed. Gym memberships and entertainment tickets are taxed.

Digital products — software, apps, e-books, and streaming subscriptions — are taxed in Minnesota. A digital read costs the same as a physical copy in terms of tax treatment.

Finding your exact local rate

The Minnesota Department of Revenue maintains a sales tax rate lookup tool on its website. You enter your street address, and the tool returns your exact combined state and local rate. This is the most reliable way to know what you will pay before you shop.

You can also ask the cashier at any store. They know the rate for that location and can tell you what tax will be added to your purchase. If you are buying something expensive and want to know the tax in advance, this is a quick way to find out.

Tax on online and mail orders

Minnesota requires online retailers to charge sales tax on orders shipped to Minnesota addresses, even if the retailer is based outside the state. This applies to most major retailers. Some small sellers may not collect tax, but you are technically responsible for reporting and paying the tax yourself on your state income tax return — though few people do.

Mail order and catalog purchases follow the same rule. If the item is shipped to Minnesota, tax applies based on the delivery address, not the seller's location.

Frequently Asked Questions

Why is my total tax rate higher than 6.875 percent?

Your city or county adds local sales tax on top of the state rate. These local additions range from 0.25 to 2.375 percent depending on where you are. The state rate alone is 6.875 percent, but your actual rate is state plus local combined.

Are groceries taxed in Minnesota?

No. Groceries — food you buy to prepare and eat at home — are not taxed. This includes produce, meat, dairy, bread, and frozen food. Restaurant meals and prepared foods are taxed, but raw groceries are not.

Is clothing taxed?

Clothing and shoes under $100 per item are not taxed. Items $100 or more are taxed on the full price. The $100 threshold applies to each individual item, not to your total purchase.

Do I pay tax on prescription medications?

No. Prescription drugs are exempt from Minnesota sales tax. Over-the-counter medications like aspirin or cough syrup are taxed, but prescriptions are not.

How do I find out what tax rate applies to my address?

Use the Minnesota Department of Revenue's sales tax rate lookup tool on its website — enter your address and it shows your combined state and local rate. You can also call your city or county assessor's office or ask at any store in your area.