Minnesota Sales Tax Calculator

Minnesota’s state rate and local taxes

Minnesota's general sales and use tax rate is 6.875%, and some cities and counties add local sales and use taxes, bringing the average combined rate to 8.14% and the highest to 9.875%. Minneapolis's combined rate is 9.025%.

Not every area has a local tax, so the Minnesota Department of Revenue offers a Sales Tax Rate Map and a Sales Tax Rate Calculator to look up the exact combined rate for an address. Enter a full street address rather than a city name for the most precise result.

Clothing and groceries are exempt in Minnesota

Minnesota is one of the few states that exempts most clothing from sales tax year-round, and grocery food is exempt too. That makes the effective tax on a family’s spending lower than the headline rate suggests.

Food and food ingredients, such as bread, fruit, vegetables, meat, dairy, nuts, cereal and most unsweetened beverages, are exempt. These are taxable:

The candy rule is broader than people expect: baking chips, gum, marshmallows, breath mints and sweetened dried fruit all count as candy. Candy means sweeteners combined with chocolate, fruit, nuts or other ingredients in the form of bars, drops or pieces, but anything containing flour or needing refrigeration is not candy, so a candy bar is taxable while a cookie is exempt food.

• Prepared food, including food the seller prepares or sells with utensils
• Candy
• Soft drinks, including soda and fruit drinks with 50% or less fruit juice
• Alcoholic beverages
• Dietary supplements and herbal products
• Food sold through vending machines

Worked example: back-to-school shopping in Minneapolis

A family spends $320 on kids’ clothing and shoes, $180 on groceries, $650 on a laptop and $40 on candy and soft drinks in Minneapolis. Clothing and groceries are exempt, so only $690 is taxable. At 9.025%, the tax is $62.27, an effective rate of 5.23% on the $1,190 total.

To reverse the calculation on a taxable receipt, divide by 1 plus the rate. A $108.14 receipt at the 8.14% average combined rate is $100.00 of goods and $8.14 of tax.

Vehicles: motor vehicle sales tax

Vehicles are taxed under Minnesota’s motor vehicle sales tax rather than the general sales tax. Since July 1, 2023, the rate has been 6.875% of the taxable sales price, matching the general rate; before that date it was 6.5%. On a $28,000 vehicle, the tax is $1,925.00.

Use tax and the $770 personal exemption

Minnesota use tax applies when you buy, lease or rent taxable items or services without paying Minnesota sales tax, such as goods bought in another state or from an internet seller that does not collect. The rate matches the sales tax, plus any local use tax where you live.

Individuals get a limited exemption: you can buy up to $770 of taxable items in a calendar year for personal use without owing use tax. Once your untaxed purchases go over $770, all of them are taxable, not just the excess. A resident with $900 of untaxed online purchases owes $61.88 at the state rate.

Minnesota does not hold a sales tax holiday; the year-round clothing exemption covers what a holiday elsewhere usually would.

Minnesota compared with its neighbors

Minnesota's 6.875% state rate is higher than Wisconsin's 5% and higher than South Dakota's 4.2%. But Minnesota's year-round clothing exemption changes the math for families: a $300 clothing purchase is tax-free in Minnesota but would carry about $17.16 at Wisconsin's average combined rate.

Cross-border shopping counts toward the $770 use tax exemption. Taxable goods bought in Wisconsin or the Dakotas and brought home are subject to Minnesota use tax once your untaxed personal purchases pass $770 for the year.

Common Minnesota mistakes

Minnesota’s exemptions are generous but have sharp edges:

• Treating the $770 exemption as a deductible. Once you go over, every untaxed purchase is taxable.
• Calling sweetened drinks food. Fruit drinks with 50% juice or less are taxable soft drinks.
• Using the old 6.5% vehicle rate. Vehicles have been taxed at 6.875% since July 1, 2023.
• Using only the state rate in a city with a local tax. Check the rate map for the full combined rate.

Groceries versus restaurant food in Minneapolis

The food exemption depends on how food is sold, not what it is. A $14 rotisserie chicken from the hot case is prepared food, taxed at 9.025% in Minneapolis: $1.26. The same $14 spent on a raw chicken and vegetables is exempt. A $60 restaurant dinner carries $5.42.

To reverse a Minneapolis receipt for taxable goods, divide by 1.09025. A $65.42 total is $60.00 of goods and $5.42 of tax.