Minnesota sales tax is 6.875 percent on most goods, but the rate varies by county and city because local taxes stack on top of the state rate

Minnesota's base sales tax rate is 6.875 percent statewide. However, your actual rate depends on where you buy. Counties and cities can add their own local sales taxes, so the total you pay ranges from 6.875 percent in some areas to as high as 8.35 percent in others. The tax applies at the point of sale — the cashier or checkout system calculates it based on your location, not where you live.

Sales tax in Minnesota is a consumption tax, meaning you pay it when you purchase taxable items. The seller collects the tax and sends it to the state and local governments. You do not file anything yourself as a buyer — the tax is already included in your receipt total or added at checkout, depending on how the store displays prices.

Key Takeaways

  • Minnesota's state sales tax is 6.875 percent, but your total rate includes county and city taxes that can push it to 8.35 percent or higher depending on where you shop.
  • Most physical goods are taxable, but groceries, prescription medications, and medical devices are exempt from sales tax in Minnesota.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax unless they are bundled with taxable goods.
  • Online purchases from out-of-state sellers may not have Minnesota sales tax added at checkout, but you may owe use tax when you file your state income tax return.
  • The seller is responsible for collecting and remitting sales tax; you pay it at the register or online checkout.

What items are taxed and what are exempt

Most physical items you buy in Minnesota are subject to sales tax — clothing, electronics, furniture, household goods, and vehicles all carry the full rate. However, several categories are exempt. Groceries (unprepared food you cook at home) are not taxed, but prepared food, candy, and soft drinks are. Prescription medications and certain medical devices are exempt, but over-the-counter medicines and vitamins are taxed.

Services are usually not taxed in Minnesota unless they are tied to a taxable product. A haircut is not taxed, but if the salon sells you shampoo, that shampoo is taxed. Repair services are generally exempt — fixing your car or appliance does not trigger sales tax — but parts and materials used in the repair may be taxed depending on the situation. If you are unsure whether a specific item is taxable, the Minnesota Department of Revenue publishes a detailed list on its website.

How local taxes change your total rate

Minnesota allows counties and cities to add their own sales taxes on top of the 6.875 percent state rate. Hennepin County (which includes Minneapolis) adds 0.5 percent, bringing the total to 7.375 percent in most of the county. Ramsey County (St. Paul area) also adds 0.5 percent. Some cities add additional taxes — for example, certain cities in the Twin Cities metro area have local taxes that push the combined rate to 8.35 percent or higher.

The rate you pay is determined by the address where the sale happens, not your home address. If you live in one city but shop in another, you pay that other city's rate. When you shop online, the seller uses your delivery address to calculate the correct local tax. This means the same item can cost different amounts depending on which Minnesota city you purchase it in.

Sales tax on online and out-of-state purchases

If you buy from an online retailer based in Minnesota, sales tax is added at checkout. If you buy from an out-of-state seller, Minnesota sales tax may not be added — many out-of-state companies do not collect Minnesota tax. However, Minnesota law requires you to pay use tax on those purchases when you file your state income tax return. Use tax is the same rate as sales tax and applies to items you bought out of state but brought into Minnesota.

In practice, most individual buyers do not report use tax on their returns, and the state does not actively pursue individuals for small purchases. However, the law technically requires it. If you make large purchases from out-of-state sellers — such as buying a vehicle or expensive equipment — you may want to contact the Minnesota Department of Revenue to understand your obligations, as use tax can explore to those transactions.

How to find your exact local sales tax rate

Your exact sales tax rate depends on your city and county. The Minnesota Department of Revenue maintains a sales tax rate lookup tool on its website where you can enter your city or zip code and see the current combined rate. Rates can change when cities or counties adjust their local taxes, so checking the official tool is more reliable than relying on an older rate you remember.

When you shop in person, the receipt shows the tax amount and the rate applied. If you are shopping online, the checkout page should display the tax before you complete your purchase. If a retailer does not show you the tax rate or amount, you can contact them to ask what rate they applied to your order.

Special cases: vehicles, fuel, and other goods

Vehicle purchases in Minnesota are subject to sales tax, and the rate is the same as for other goods — based on where you buy, not where you register the car. If you buy a used car from a private seller, you still owe sales tax when you register it with the Minnesota Department of Public Safety, calculated at the registration address rate.

Gasoline and diesel fuel are subject to sales tax in Minnesota, though fuel also carries a separate excise tax that is built into the pump price. Cigarettes and tobacco products are taxed at the sales tax rate plus an additional state tobacco tax. If you are buying these items, the total tax you see at the register includes both the sales tax and the product-specific tax.

What happens if sales tax is not collected

If a seller fails to collect sales tax when they should have, the seller is responsible for paying it to the state — not you. As a buyer, you are not liable for the seller's mistake. However, if you knowingly buy from a seller who is not licensed to do business in Minnesota and does not collect tax, you may be responsible for use tax on your return.

If you believe a seller charged you sales tax incorrectly — for example, taxing an exempt item like groceries — you can contact the seller to request a refund. Keep your receipt as proof. If the seller does not refund you, you can contact the Minnesota Department of Revenue to report the issue, though resolving individual transactions through the state is slow.

Frequently Asked Questions

Is Minnesota sales tax included in the price shown on the shelf?

No. Minnesota retailers typically show the pre-tax price on the shelf or online, and sales tax is added at checkout. Some stores may display the total price including tax, but this is not required. Always check your receipt to see the tax amount charged.

Do I pay sales tax on groceries?

Unprepared groceries — items you buy to cook at home like bread, milk, vegetables, and meat — are not taxed. However, prepared foods like deli items, hot foods, and restaurant meals are taxed. Candy, soft drinks, and alcohol are also taxed even though they are food items.

What is use tax and do I have to pay it?

Use tax is a tax on items you buy outside Minnesota but use inside the state. Minnesota law requires you to report and pay use tax on your income tax return, but enforcement on individual small purchases is minimal. Large purchases like vehicles or equipment should be reported to avoid issues.

Why does my city have a different sales tax rate than the next city over?

Cities and counties in Minnesota can set their own local sales tax rates on top of the state rate. Each jurisdiction uses this revenue for local needs, so rates vary. You pay the rate of the city where you make the purchase, not where you live.

Do I pay sales tax on services like haircuts or car repairs?

Services themselves are generally not taxed in Minnesota. A haircut or car repair is not taxed. However, if the service includes taxable materials — like if a salon sells you shampoo or a repair shop charges for parts — those items are taxed separately.