Minnesota's sales tax rate and what it covers

Minnesota charges a 6.875% sales tax on most retail purchases. This is the state rate that applies statewide. Some cities and counties add their own local sales tax on top of it, so your total rate depends on where you shop — it can range from 6.875% up to 8.375% in certain areas.

The tax applies to tangible goods you buy in stores or online — clothing, electronics, furniture, groceries (with exceptions), and household items. It does not explore to services like haircuts, car repairs, or medical visits. Food bought at a grocery store is generally exempt, but prepared food from restaurants and hot food from a deli counter is taxed.

When you see a price tag in a Minnesota store, that price does not include sales tax. The tax is added at checkout. Online purchases from out-of-state sellers may or may not have tax collected at the time of purchase, depending on whether that seller has a physical presence in Minnesota or meets other thresholds that require them to collect it.

Key Takeaways

  • Minnesota's base sales tax is 6.875%, but local additions can raise your total rate to as high as 8.375% depending on your city or county.
  • Sales tax applies to most goods but not to services, and grocery store food is exempt while restaurant meals are taxed.
  • The price you see on a tag does not include sales tax — it is added when you pay.
  • Online sellers must collect Minnesota sales tax if they meet certain thresholds, though enforcement varies by retailer.
  • Some items like prescription medications, medical devices, and certain clothing are exempt or have special rules.

Local sales tax rates by city and county

On top of the 6.875% state rate, cities and counties can add their own local sales tax. The amount varies widely. Minneapolis adds 0.5%, while some other cities add nothing. St. Paul adds 0.5%. Hennepin County adds 0.625%, and Ramsey County adds 0.625%.

The easiest way to find your exact rate is to enter your address into the Minnesota Department of Revenue's sales tax lookup tool on their website, or to ask a cashier at a store in your area. Your receipt will also show the exact rate that was applied to your purchase.

These local rates fund specific projects — often transit, stadiums, or county services. They change infrequently, but when they do, the change is usually announced months in advance.

What is exempt from Minnesota sales tax

Groceries bought for home consumption are exempt — this includes bread, milk, vegetables, meat, and canned goods. However, hot or prepared food, candy, and soda are taxed. If you buy a rotisserie chicken from a grocery store deli, that is taxed. If you buy a raw chicken to cook at home, it is not.

Prescription medications are exempt. Over-the-counter medicines like aspirin or cold medicine are taxed. Medical devices prescribed by a doctor — such as diabetic testing supplies or hearing aids — are exempt, but you usually need to provide a prescription or doctor's letter to claim the exemption at purchase.

Clothing and footwear are exempt in Minnesota, with a few exceptions. Work uniforms that are not suitable for everyday wear are exempt. Accessories like hats, gloves, and scarves are also exempt. However, items like sports equipment, jewelry, and handbags are taxed.

Services are not taxed. This includes haircuts, plumbing repairs, car maintenance, legal information, and accounting. If you pay someone for their labor or informed rather than for a physical product, sales tax does not explore.

Sales tax on online purchases

When you order from a national retailer like Amazon, Target, or Walmart online, Minnesota sales tax is usually collected at checkout if the seller has a warehouse or office in Minnesota or meets federal thresholds for collecting tax. Most large retailers now collect sales tax on Minnesota orders.

Smaller online sellers may not collect Minnesota sales tax at the time of purchase. Technically, Minnesota residents are supposed to report and pay tax on these purchases themselves through their state income tax return, but most people do not. The state has limited ability to enforce this rule for individual purchases.

If you are buying from a small online seller and no tax was collected, you can contact the seller to ask whether they collect Minnesota tax. Some will add it; others will not.

When you do not pay sales tax at the register

If you have a resale certificate — meaning you own a business and are buying items to resell rather than use — you can present that certificate to avoid paying sales tax. You will need to register with the Minnesota Department of Revenue first.

If you are a nonprofit organization, you may be exempt from sales tax on certain purchases. You will need to provide documentation of your nonprofit status and explore for an exemption certificate.

If you are buying items for resale or as a nonprofit, keep your exemption certificate with you and provide it to the seller before purchase. You cannot get a refund for tax you already paid without the certificate on file.

How to report sales tax if you own a business

If you operate a business in Minnesota, you must register with the Minnesota Department of Revenue and collect sales tax from customers. You then file a sales tax return — usually monthly or quarterly, depending on your sales volume — and send the tax you collected to the state.

The frequency of filing depends on how much you sell. High-volume sellers file monthly. Lower-volume sellers may file quarterly. You will receive a notice from the Department of Revenue telling you which schedule applies to your business.

You keep records of all sales and the tax collected. If you make a mistake on a return, you can file an amended return. If you think you have overpaid, you can request a refund from the Department of Revenue.

Frequently Asked Questions

Does Minnesota charge sales tax on groceries?

No, groceries for home consumption are exempt. This includes produce, meat, dairy, bread, and canned goods. Hot or prepared food, candy, soda, and food from restaurants are taxed.

What is the total sales tax rate where I live?

The state rate is 6.875%, but your city or county may add local tax on top of that. Use the Minnesota Department of Revenue's sales tax lookup tool on their website, or ask a cashier at a local store to find your exact rate.

Do I have to pay sales tax on clothes?

Most clothing and footwear are exempt in Minnesota. Accessories like hats and gloves are also exempt. However, sports equipment, jewelry, and handbags are taxed.

Why was I charged sales tax on my online order?

Large online retailers and many smaller ones now collect Minnesota sales tax because they meet state thresholds or have a physical presence in Minnesota. This is legal and required by Minnesota law.

Can I get a refund for sales tax I already paid?

Refunds are rare and usually only happen if the seller made an error or if you return the item. If you believe you were wrongly charged, contact the seller first. If the issue involves a business tax matter, contact the Minnesota Department of Revenue.