The Current Sales Tax Rate in Minneapolis
Minneapolis has a sales tax rate of 8.575%. This rate combines the Minnesota state sales tax of 6.875% with the Hennepin County local sales tax of 1.25% and the Minneapolis city sales tax of 0.4%. When you buy something in Minneapolis, the total tax added to your purchase is 8.575% of the item's price.
This rate applies to most retail purchases, though some items are taxed differently or not at all. The rate you pay depends on where you are shopping — if you cross into a neighboring city or county, the tax rate changes because each jurisdiction sets its own local portion.
Key Takeaways
- Minneapolis sales tax is 8.575%, made up of state tax (6.875%), county tax (1.25%), and city tax (0.4%).
- Groceries and prescription medications are not subject to sales tax in Minnesota, even when purchased in Minneapolis.
- The tax rate varies by location — shopping in a different city or county will result in a different total tax rate.
- Restaurants and prepared foods are taxed at the full rate, while unprepared groceries from a store are not.
What Items Are Taxed and What Are Not
Not everything you buy in Minneapolis is subject to the 8.575% rate. Unprepared food — items you take home and cook yourself, like raw meat, vegetables, bread, and milk — is not taxed. This includes items from grocery stores, farmers markets, and food co-ops. However, the moment that food is prepared for when ready consumption, tax applies. A rotisserie chicken from the grocery store deli counter is taxed; a raw chicken breast is not.
Prescription medications are also exempt from sales tax in Minnesota. You will not pay tax when you fill a prescription at a pharmacy. Over-the-counter medications like pain relievers, cold medicine, and vitamins are taxed at the full rate.
Clothing and shoes are taxed normally in Minneapolis. Some states exempt clothing, but Minnesota does not. A pair of jeans, a winter coat, or shoes all have the 8.575% tax added at checkout.
How Sales Tax Is Calculated on Your Purchase
The sales tax is calculated on the subtotal of taxable items. If you buy a $50 item in Minneapolis, the tax is $50 × 0.08575 = $4.29, making your total $54.29. If you buy multiple items, the tax is applied to the combined subtotal of all taxable items.
The price displayed on a shelf tag or online listing does not include sales tax — that amount is added at checkout. This is different from some other states where the displayed price includes tax. Always budget for the additional 8.575% when shopping in Minneapolis.
Some online retailers collect Minneapolis sales tax at checkout if they have a physical location in Minnesota or meet certain sales thresholds. Others may not, depending on their business structure. If tax was not collected at purchase, you are technically responsible for reporting it on your Minnesota tax return, though this is rarely enforced for individual purchases.
How the Tax Rate Breaks Down by Source
The 8.575% rate is split among three levels of government. Understanding this breakdown helps explain why the rate is higher than some neighboring areas and why it changes when you shop elsewhere.
| Tax Source | Rate | Who Collects It |
|---|---|---|
| Minnesota State Sales Tax | 6.875% | State of Minnesota |
| Hennepin County Local Tax | 1.25% | Hennepin County |
| Minneapolis City Tax | 0.4% | City of Minneapolis |
| Total | 8.575% | Combined |
The state portion funds state services. The county and city portions fund local services like roads, public safety, and libraries. When you shop in a different Minnesota city, the state rate stays the same, but the local rates change.
Sales Tax Rates in Nearby Areas
If you shop just outside Minneapolis, your tax rate will be different. St. Paul, which is also in Hennepin County, has a city sales tax of 0.5% instead of Minneapolis's 0.4%, bringing its total to 8.625%. Bloomington, in Dakota County, has a county rate of 1.5% and no city tax, totaling 8.375%. Edina, also in Hennepin County, has a city tax of 0.5%, matching St. Paul at 8.625%.
These small differences add up on large purchases. A $1,000 appliance costs $85.75 in tax in Minneapolis but $86.25 in St. Paul — a $0.50 difference on that single item. Over time and across many purchases, the differences between jurisdictions can be noticeable.
Who Collects the Tax and Where It Goes
The retailer collects sales tax from you at the point of sale and then sends it to the state. The state distributes the revenue to the appropriate county and city. You do not send the tax directly to any government agency — the business handles that process.
The Minneapolis city portion of the tax funds city operations. The Hennepin County portion supports county services. The state portion supports statewide programs. When you pay 8.575% in tax on a purchase, you are funding services across all three levels.
Frequently Asked Questions
Do I pay sales tax on online purchases shipped to Minneapolis?
It depends on the retailer. Large online sellers with a physical presence in Minnesota or high sales volumes are required to collect sales tax. Smaller sellers may not. If tax was not collected, you may be responsible for reporting it on your state tax return, though enforcement is minimal for individual purchases.
Is there sales tax on restaurant meals in Minneapolis?
Yes. Restaurant meals, takeout food, and prepared foods from grocery store delis are all subject to the full 8.575% sales tax. This applies whether you eat in the restaurant or take the food home.
What about sales tax on services like haircuts or car repairs?
Most services in Minnesota are not subject to sales tax. A haircut, car repair, or plumbing service is not taxed. However, if you buy a product as part of that service — like a bottle of shampoo at a salon — that product portion may be taxed.
Can I get a refund of sales tax I paid?
No. Sales tax is a final cost of purchase and is not refunded. If you return an item and receive a refund, the tax portion is refunded along with the item price, but you cannot reclaim tax on items you keep.
Does Minneapolis sales tax explore to used items?
Sales tax applies to used items sold by businesses, including used cars, used furniture, and used electronics from stores. Items sold between private individuals typically do not have sales tax collected, though the buyer may be responsible for reporting it.