Minnesota’s statewide sales tax rate is 6.875%, but that’s not the only tax that can apply at checkout. The Twin Cities metropolitan area, individual counties, and special taxing districts all add their own rates on top. The combined rate for certain addresses can reach 9.875%. Below, we’ll explain how the Minnesota sales tax rate works, what local rates apply across the state’s largest cities and counties, and how to calculate the sales tax on any transaction.

Highlights

• Minnesota’s base sales tax rate is 6.875%, although combined rates can reach as high as 9.875% depending on location.

• Out-of-state businesses that exceed $100,000 in annual retail sales in Minnesota are required to collect and remit sales tax.

• Minnesota exempts most clothing and groceries from sales tax, but it taxes certain digital goods and services that many other states don’t.

What is the Minnesota sales tax rate?

Minnesota’s statewide sales tax rate is 6.875%, but counties, cities, and special districts can add their own local taxes on top of the state rate. In Minneapolis, for example, those additions raise the combined rate to 9.025%. Because local taxes vary by location, the exact rate you collect depends on where the product is delivered or where the sale takes place.

How does Minnesota’s sales tax rate work?

The Minnesota Department of Revenue administers sales tax. Businesses that sell taxable goods or services in the state, whether they’re physically located there or meet economic nexus requirements, must collect and remit sales tax on qualifying transactions. The Department of Revenue assigns filing frequency based on expected tax liability. It’s usually monthly for higher-volume sellers, quarterly for midrange sellers, or annually for lower-volume sellers.

Economic nexus

Minnesota uses a dollar-based economic nexus threshold for remote sellers. Out-of-state businesses must collect sales tax once they exceed $100,000 in retail sales in Minnesota, measured in the current or prior calendar year. There’s no transaction count threshold. This applies to ecommerce sellers, software-as-a-service (SaaS) companies, and other remote businesses that sell into Minnesota.

What’s taxable in Minnesota?

Here’s how Minnesota taxes several categories of goods and services:

• Taxable goods: Most tangible personal property is taxable. Clothing is generally exempt, although accessories, fur clothing, and athletic or protective equipment are all taxable. The state taxes certain digital products, including downloaded software and some streaming services. Rules can vary by product type.

• Taxable services: Minnesota taxes some services that other states don’t, including certain telecommunications, admissions and entertainment, and repair services.

• Exempt products: Minnesota exempts several major categories from state sales tax, including most groceries (food for home consumption), prescription drugs, and certain farm equipment.

When taxable and nontaxable items are bundled, taxability can depend on whether items are separately stated on the invoice.

What are the local sales tax rates in Minnesota?

On top of the 6.875% state rate, Minnesota allows counties, cities, and special districts to impose their own taxes. Local rates typically range from 0.500%–3.000%. Some local taxes are approved by voters and designated for specific uses such as sports facilities, transit infrastructure, and downtown development. These local taxes are included in the combined rate you collect on qualifying transactions.

The table below shows a possible combined rate for a transaction in Minneapolis.

Minnesota sales tax range in 2026

What are Minnesota’s sales tax rates by city?

The table below shows the minimum combined sales tax rate for some of Minnesota’s largest cities. Actual rates might be higher, depending on additional district taxes.

Rates reflect the state, county, city, and applicable special district taxes. Always verify them with the Minnesota Department of Revenue’s rate lookup before you file, as local taxes can change throughout the year.

What are Minnesota’s sales tax rates by county?

County taxes matter when you’re selling in unincorporated areas or establishing a baseline before city taxes apply. Here are the minimum combined rates of several counties in the state.

Hennepin and Ramsey counties add taxes on top of the state base. The rates of St. Louis (Duluth) and Olmsted (Rochester) reach 7.375% before any city taxes apply.

How do you calculate Minnesota’s sales tax rate?

The process for calculating Minnesota’s sales tax is straightforward:

• Start with the taxable sale amount.

• Find the combined rate for the delivery address.

• Multiply the taxable sales amount by the combined rate.

Businesses can find it challenging to choose the correct rate, handle exemptions, and track local changes. Use Stripe’s sales tax calculator to check rates for specific Minnesota addresses before you set anything up. The Department of Revenue also publishes rate tables and has an address-level lookup tool that helps find the correct combined rate for any location in the state.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.