Minnesota Sales Tax Calculator 2026

Minnesota Sales Tax Rate Quick Facts

How to Use the Minnesota Sales Tax Calculator

Use the Minnesota sales tax calculator when you know the pre-tax purchase price and want to estimate the tax amount and final total. Enter the taxable amount, then use Minnesota's average combined rate if you only need a general statewide estimate.

For a more accurate result, replace the default rate with the exact city, county, or address-level rate. This matters in Minnesota because the 6.875% state rate is only the starting point. Local city, county, transit, housing, and special local taxes can increase the final checkout rate.

For ecommerce, delivery orders, invoices, marketplace sales, restaurant sales, lodging, liquor, cannabis, or business purchases, use the exact delivery or transaction address. Minnesota's official rate calculator can search by address, ZIP+4, or map location, and the state warns that ZIP codes can cross city or county boundaries.

How Minnesota Sales Tax Works

Minnesota has a statewide general sales tax rate of 6.875%. Sales tax applies to most retail sales of taxable goods and some taxable services unless an exemption applies.

Minnesota also allows local sales and use taxes. Counties, cities, transit areas, housing areas, and other special jurisdictions can add local taxes to the state rate. This is why Minneapolis, Saint Paul, Rochester, Duluth, Bloomington, Brooklyn Park, Plymouth, Eagan, Woodbury, Maple Grove, and Saint Cloud can have different combined rates.

Minnesota uses sourcing rules to determine which rate applies. If the customer picks up the product at the seller's location, the seller's location generally controls the rate. If the seller ships or delivers the product or service to the customer, the delivery address generally controls the rate. If neither address applies, Minnesota uses a sequence of other address-based sourcing rules.

Minnesota also has special local taxes that may apply only to certain categories, such as admissions, entertainment, liquor, lodging, restaurants, food and beverages, or other local activities. These special taxes may not always appear in a general state/local sales tax lookup, so business users should verify category-specific rules.

The state also has some of the most important consumer exemptions in the country. Clothing suitable for general use is generally exempt. Food and food ingredients are generally exempt. But prepared food, restaurant meals, candy, soft drinks, dietary supplements, taxable digital products, prewritten software, and many taxable services can still be taxed.

For consumers, the calculator gives a fast estimate. For businesses, Minnesota rate verification should use the Minnesota Department of Revenue Sales Tax Rate Calculator, Sales Tax Rate Map, local tax chart, and product-specific guidance.

Minnesota Sales Tax Formula

Use the first formula when you know the taxable price and want to estimate Minnesota sales tax.

Use the second formula when you want the final checkout total after Minnesota state and local sales tax.

Use the reverse formula when a Minnesota receipt already includes tax and you need to separate the original pre-tax price from the tax amount.

For exempt clothing or exempt grocery food, the sales tax may be $0.00. For restaurant, lodging, liquor, cannabis, or special local tax transactions, use the correct category-specific rate instead of only the general rate.

Minnesota Sales Tax Examples

Example 1: $100 Purchase in Minnesota

Using Minnesota's average combined rate of 7.45%:

Example 2: $250 Purchase in Minneapolis

Using a common Minneapolis combined general rate of 9.025%:

This example shows why Minnesota users should not use only the 6.875% state rate. Minneapolis has additional local layers that raise the final rate.

Example 3: Reverse Sales Tax from a Minnesota Receipt

Suppose your Minnesota receipt total is $107.45 and the combined rate was 7.45%.

Use this reverse calculation when the receipt shows only the final total and you need to estimate the original taxable price.

Major Minnesota City Sales Tax Rates

Before deployment, verify every city rate with the Minnesota Department of Revenue Sales Tax Rate Calculator or Sales Tax Rate Map. Minnesota local rates can change, and some special local taxes for restaurants, lodging, liquor, admissions, entertainment, or cannabis may not be included in a general retail rate.

Why Sales Tax Varies in Minnesota

Minnesota sales tax varies because the 6.875% state rate can be combined with local city, county, transit, housing, and special local taxes. Some locations only use the state rate, while other cities have several additional layers.

This is why Minneapolis, Saint Paul, Rochester, Duluth, Bloomington, Brooklyn Park, Plymouth, Eagan, Woodbury, and Maple Grove can show different combined rates. Two addresses with the same city name or ZIP code may also differ if a ZIP code crosses a city or county boundary.

Minnesota also has special local taxes that apply only to specific categories. These may include admissions, entertainment, lodging accommodations, liquor, restaurants, and food and beverage sales. A normal retail purchase and a restaurant meal in the same city may not always have the same final tax treatment.

For shoppers, the practical rule is: use the city rate for a quick estimate. For businesses, the practical rule is: use address-level lookup and check whether any special local tax applies to the specific transaction category.

What Is Taxable in Minnesota?

Online Purchases and Remote Sellers in Minnesota

Online purchases delivered into Minnesota may be subject to Minnesota state and local sales or use tax. If the seller collects Minnesota tax, the rate should usually include the 6.875% state rate plus any local tax based on where the customer receives the taxable product or service.

Remote sellers must collect and remit Minnesota sales tax if, over the prior 12-month period, they have either 200 or more retail sales shipped to Minnesota or more than $100,000 in retail sales shipped to Minnesota. One sale transaction counts as one retail sale even if the order contains multiple items.

When calculating the threshold, Minnesota says resale transactions with a completed exemption certificate should not be included. If a remote seller exceeds the threshold, it must register and begin collecting by the first day of a calendar month no later than 60 days after crossing the threshold.

Marketplace providers can collect Minnesota tax on behalf of sellers. If a marketplace provider collects and remits Minnesota sales tax for marketplace transactions, the seller generally does not collect tax on those marketplace sales. However, the seller still needs to evaluate direct website sales and other sales channels.

Plain-English example: if an ecommerce seller ships taxable products to Minnesota customers and crosses $100,000 in Minnesota retail sales or 200 Minnesota retail transactions over the prior 12 months, it should register, collect the correct state and local rate based on the customer's delivery address, file returns, and keep records of marketplace, exempt, resale, and direct sales.

Minnesota Clothing, Food, and Retail Delivery Fee Notes

Minnesota has several user-facing rules that make the page more useful than a basic rate calculator.

Clothing for general use is generally exempt from Minnesota sales tax. This is unusual compared with many states. However, the exemption does not cover everything worn or carried by a person. Clothing accessories, sports or recreational equipment, protective equipment, and fur clothing can be taxable.

Food and food ingredients are generally exempt. But prepared food is taxable. Food prepared by the seller, food sold heated, food sold with eating utensils, restaurant meals, food truck meals, bar food, and catered food are generally taxable. Candy, soft drinks, dietary supplements, alcohol, and tobacco are not treated like exempt grocery food.

Minnesota also has a Retail Delivery Fee. A 50-cent fee can apply to certain retail delivery transactions of $100 or more when the order includes taxable tangible personal property or clothing delivered to a person in Minnesota. This is not a percentage-based sales tax, but it matters for ecommerce sellers, local delivery sellers, furniture stores, apparel sellers, and marketplaces.

Minnesota Software and Digital Product Notes

Minnesota has a useful distinction between prewritten software, SaaS, and digital products.

Prewritten computer software is taxable. The tax can apply whether the software is sold, leased, or licensed. Software delivery method does not automatically make it exempt.

Online-hosted software subscriptions are generally not taxable under Minnesota guidance. Charges for maintenance or upgrades to online-hosted software are also generally not taxable, even if separately stated. This is important for SaaS businesses because Minnesota is not a simple "all SaaS taxable" state.

Digital products can be taxable. Minnesota taxes digital audio works, digital audiovisual works, digital books, digital codes that provide access to taxable digital products, e-greeting cards, and online video or computer gaming. Some digital items, such as access to digital news articles, charts, graphs, data reports, financial reports, digital photos, and digital drawings, may be nontaxable depending on the facts.

For businesses, the safest rule is not to label everything "software" or "digital goods." Classify the product as prewritten software, online-hosted software, taxable digital product, nontaxable digital content, data service, professional service, or bundled product before deciding whether Minnesota sales tax applies.

Common Minnesota Sales Tax Mistakes

• Using only the 6.875% state rate and ignoring local sales taxes.
• Assuming Minneapolis, Saint Paul, Rochester, Duluth, and Bloomington use the same rate.
• Relying only on a 5-digit ZIP code instead of an address or ZIP+4.
• Forgetting that special local taxes may apply to restaurants, liquor, lodging, admissions, or entertainment.
• Charging sales tax on exempt general-use clothing.
• Treating accessories, sports equipment, protective equipment, or fur clothing as exempt clothing without checking the rules.
• Treating grocery food and prepared food the same.
• Exempting candy, soft drinks, dietary supplements, alcohol, or tobacco as grocery food.
• Treating SaaS as taxable without checking Minnesota's online-hosted software guidance.
• Treating all digital products as exempt when many digital audio/video/book products are taxable.
• Ignoring the 50-cent Retail Delivery Fee on qualifying $100+ delivery transactions.
• Missing the $100,000 or 200-transaction remote seller threshold.

Minnesota Sales Tax for Businesses

Businesses selling taxable goods, prepared food, digital products, prewritten software, lodging, taxable services, liquor, cannabis products, or retail delivery transactions in Minnesota may need to register, collect tax, file returns, and remit state and local sales tax.

Minnesota businesses should first classify the transaction. A sale may be taxable tangible personal property, exempt clothing, exempt grocery food, taxable prepared food, taxable digital product, taxable prewritten software, nontaxable online-hosted software, taxable service, lodging transaction, liquor sale, or cannabis sale.

Next, businesses should determine the correct rate. Minnesota's rate can depend on where the customer receives the product or service. Use the seller's location for customer pickup, the delivery address for shipped or delivered sales, and the state's sourcing hierarchy when those do not apply. Address-level lookup is especially important for ecommerce and local delivery.

Remote sellers should monitor the prior-12-month $100,000 or 200-retail-sale threshold. Marketplace sellers should verify whether their marketplace provider is collecting Minnesota tax and whether direct sales create separate collection duties.

Businesses should also review the Retail Delivery Fee. If a qualifying delivery transaction is $100 or more and includes taxable tangible personal property or clothing delivered to a Minnesota customer, the 50-cent fee may apply.

Keep records of taxable sales, exempt clothing sales, grocery-food treatment, prepared-food sales, digital products, software/SaaS classification, delivery addresses, local rate lookups, marketplace sales, resale certificates, Form ST3 exemption certificates, Retail Delivery Fee transactions, local tax lines, and returns filed through Minnesota e-Services.

This calculator is useful for estimates, but businesses should verify exact obligations through the Minnesota Department of Revenue, Sales Tax Rate Calculator, Sales Tax Rate Map, Local Sales and Use Tax Guide, Sales and Use Tax Business Guide, and product-specific Minnesota Revenue guidance.

Official Minnesota Sales Tax Sources

• Minnesota Department of Revenue — Sales and Use Tax
• Minnesota Department of Revenue — Taxes and Rates
• Minnesota Department of Revenue — Sales Tax Rate Calculator
• Minnesota Department of Revenue — Sales Tax Rate Map
• Minnesota Department of Revenue — Local Sales and Use Taxes
• Minnesota Department of Revenue — Sales Tax for Remote Sellers
• Minnesota Department of Revenue — Clothing
• Minnesota Department of Revenue — Food and Food Ingredients
• Minnesota Department of Revenue — Prepared Food
• Minnesota Department of Revenue — Computer Software and Digital Products
• Minnesota Department of Revenue — Retail Delivery Fee
• Tax Foundation — State and Local Sales Tax Rates

Last reviewed: June 2026. Rates and rules can change. Verify with the Minnesota Department of Revenue before filing, remitting, or making compliance decisions.