Minnesota Sales
Tax Rate

Minnesota has a 6.875 percent statewide general sales tax in 2026. Local sales and use taxes can raise the combined rate based on where the customer receives the taxable product or service. Minnesota also exempts many grocery items, general-use clothing plus qualifying drugs from the general sales tax.

Minnesota's State Sales Tax Rate Is 6.875 Percent

The 6.875 percent rate is the statewide general sales and use tax rate. A seller must add any local sales taxes that apply to the transaction location before calculating the final tax.

Local Minnesota Sales Tax Depends on the Customer Location

Minnesota uses destination-based sourcing for many transactions. The general local rate is based on where the customer receives the taxable product or service, which is often the delivery address or business location.

Local rates can change during the year. Minnesota Revenue publishes rate guides, a rate map plus an address-based calculator. The state advises businesses to use those tools instead of relying on a statewide average or a city rate copied from an older invoice.

How to Calculate Minnesota Sales Tax

Identify the taxable sales price, confirm the 6.875 percent state rate, add every applicable local rate for the sourcing location, then multiply the taxable price by the combined rate. Special local taxes may require an additional calculation.

The examples show the state portion only and are rounded to the nearest cent. The actual customer charge can be higher when local sales tax applies.

Groceries Are Generally Exempt From Minnesota Sales Tax

Food and food ingredients are generally exempt in Minnesota when they meet the state's definition. Common grocery items such as bread, flour, poultry, frozen meals plus many fruits and vegetables fall within the exemption.

Prepared food, candy, soft drinks, alcoholic beverages plus dietary supplements do not receive the general grocery exemption. Food prepared by the seller or sold with eating utensils supplied by the seller can become taxable even when the underlying ingredients would have been exempt at a grocery store.

General-Use Clothing Is Exempt in Minnesota

Minnesota exempts clothing suitable for general use. Examples include ordinary shirts, pants, shoes, coats, uniforms, socks plus many other wearable items.

The exemption does not cover every wearable product. Fur clothing, clothing accessories or equipment, sports or recreational equipment plus protective equipment can be taxable. Product classification should be checked before treating every apparel-related sale as exempt.

Minnesota Taxes Tangible Property and Selected Services

Sales and rentals of tangible personal property are generally taxable unless an exemption applies. Minnesota also taxes selected services rather than imposing a broad tax on every service.

• Building cleaning and maintenance services
• Detective and security services
• Landscape maintenance services
• Certain telecommunications and pay television services
• Prepared food and catering
• Lodging and related taxable accommodation services

A service business should confirm whether its exact activity is listed as taxable. A service can be nontaxable even when a separate product sold with the service is taxable.

Minnesota Use Tax Applies to Untaxed Taxable Purchases

Use tax applies when a buyer uses, stores or consumes a taxable item in Minnesota without paying the correct sales tax. Businesses can also owe local use tax when an item is used in an area with a local tax.

Use tax commonly arises when property is bought from an out-of-state seller that did not collect Minnesota tax, when taxable inventory is taken for business use or when a purchase is made in a lower-tax jurisdiction and later used in a higher-tax Minnesota location.

Remote Sellers Can Have Minnesota Economic Nexus

An out-of-state seller must register and collect Minnesota sales tax when it exceeds either of the state's small seller thresholds during the prior 12-month period. The thresholds are 200 or more retail sales shipped to Minnesota or more than $100,000 in Minnesota retail sales.

Sales for resale are not counted toward the small seller exception when the purchaser supplies a valid resale exemption certificate. Physical presence, employees, representatives or marketplace activity can also create Minnesota sales tax obligations.

Minnesota Sales Tax Filing Frequency Depends on Liability

Minnesota assigns annual, quarterly or monthly filing based on average monthly sales and use tax liability. Filing dates differ by frequency.

Sales Tax Is Separate From Minnesota Income Tax and Payroll

Minnesota sales tax applies to customer transactions. Minnesota income tax applies to taxable income, while payroll withholding applies to employee wages. A business can have obligations in all three systems without the taxes being interchangeable.

For state income tax rules, see the Minnesota income tax guide. If the task is employee take-home pay, the Minnesota paycheck calculator handles payroll rather than customer sales tax.

For lawful payroll documentation after wages are finalized, the online paystub generator can organize genuine earnings and deduction records.