Minneapolis, Minnesota Sales Tax Rate

Enter a price to calculate Minneapolis sales tax at the 9.025% combined local rate, and see the tax amount and final total for 2026.

✓ Minneapolis Combined Rate✓ Minnesota State Tax✓ 2026 Tax Table

The price before sales tax is added.

Fixed rate for Minneapolis (Hennepin County).

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Welcome to the local rate overview. The Minneapolis, Minnesota sales tax rate is 9.025% in 2026. This combined rate includes the Minnesota base rate of 6.875% plus applicable local option taxes in the transaction jurisdiction (the local portion is 2.150%). Use the calculator above to easily determine tax totals.

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📍 ZIP Codes Commonly Associated With Minneapolis, MN

The following ZIP codes are commonly associated with Minneapolis, Minnesota. Sales tax can depend on the exact address, especially near city or county boundaries, so businesses should verify address-level rates before filing.

55401
55402
55403
55404
55405
55406
55407
55408
55409
55410
55411
55412
55413
55414
55415
55416
55417
55418
55419
55454

Minneapolis Economic & Tax Profile

Minneapolis has a 9.025% combined sales tax rate, including state, county, city, and metro transit taxes

Largest city in Minnesota and economic engine of the Upper Midwest; Fortune 500 headquarters and world-class arts scene

Key Industries

Corporate HQs, healthcare, technology, finance, education

Known For

Minneapolis Institute of Art, Skyway system, Chain of Lakes, Walker Art Center, First Avenue, Mill City Museum

Local Tax Authority

Hennepin County

Special Tax Rules for Minneapolis

  • State 6.875% + Hennepin County 0.15% + Minneapolis 0.5% + Metro Housing 0.25% + Metro Transit 0.75% + Transit Improvement 0.5% = 9.025%
  • Clothing and most groceries are exempt from Minnesota sales tax
  • Prepared food and restaurant meals fully taxable

How Minneapolis Compares to Minnesota

Minneapolis has the most diverse economy in MN with corporate HQs, finance, and tech sectors unique outside the Twin Cities

Industry-Specific Tax Guidance

Minneapolis's corporate HQ economy means significant B2B spending on technology and professional services; clothing exemption benefits the retail sector

County-Level Tax Details

Hennepin County's 0.15% rate plus Minneapolis's 0.5% city tax and metro transit district taxes bring the total to 9.025%

Minneapolis Sales Tax Rate — Economic Context & Calculation

Corporate HQs (Target, Best Buy, US Bancorp, Xcel Energy), healthcare, technology, education (University of Minnesota), and finance. Largest city in Minnesota and economic engine of the Upper Midwest.

The combined sales tax rate in Minneapolis is 9.025%, composed of the Minnesota state rate of 6.875% plus a local portion of 2.150%. On a receipt, that stacks up as: State 6.875% + Hennepin County 0.15% + Minneapolis 0.5% + Metro Housing 0.25% + Metro Transit 0.75% + Transit Improvement 0.5% = 9.025%.

The formula to calculate sales tax for any purchase:

Mathematical Formula
Sales Tax Amount = Taxable Price × Combined Tax Rate

For a $150.00 purchase in Minneapolis: tax is $13.54 ($150.00 × 0.09025), total is $163.54.

SaaS, Cloud & Digital Goods Taxability in Minneapolis

Minneapolis's Corporate HQs and healthcare economy sells exactly the products whose taxability states disagree on most: software, subscriptions, and digital services.

Minnesota treatment of digital products:

  • SaaS/Cloud Subscriptions: Generally exempt from Minnesota sales tax unless transferred via tangible media.
  • Software Downloads: Generally taxable as prewritten computer software
  • Custom Software Development: Generally non-taxable professional service
  • SaaS + Implementation Services: Bundled transactions may require allocation
  • Data Processing/Info Services: Varies by state

Compliance tip for Minneapolis sellers: a taxable $99/month subscription billed to a Minneapolis address carries $8.93 of tax at the 9.025% combined rate — calculate it from the customer's address-level location, not the ZIP code.

Remote Worker Nexus & Distributed Team Tax Compliance

Minneapolis's Corporate HQs and healthcare employers hire far beyond Hennepin — and every remote hire can move the company's tax map:

  • Employee Physical Presence: A single remote employee in a state can create nexus for the entire company
  • Home Office Equipment: Shipping equipment to remote employees may trigger use tax obligations
  • State Withholding: Remote employees trigger income tax withholding obligations in their state of residence
  • Local Tax Variations: Employees in different cities within Minnesota may have different combined rates

Action item: Maintain a real-time employee location registry and map to state nexus thresholds quarterly.

R&D Tax Credits & Equipment Exemptions for Minneapolis Innovators

Companies building in Minneapolis's Corporate HQs and healthcare sector may qualify for significant incentives:

  • R&D Tax Credits: The federal credit for qualified research activities; many states layer their own — verify Minnesota's current program
  • Manufacturing Equipment Exemptions: Equipment used in qualified R&D may be exempt
  • Data Center Exemptions: Check state-specific programs
  • Qualified Small Business Stock (QSBS): Federal exclusion for gains on qualified stock

Digital Marketplace Facilitator Rules for Minneapolis Platforms

A marketplace or platform run from Minneapolis collects for its third-party sellers under Minnesota's facilitator law:

  • Minnesota marketplace facilitator law requires platforms to collect/remit sales tax on behalf of third-party sellers
  • Threshold in Minnesota: $100,000 in gross sales, or 200 transactions (verify the transaction test — states are repealing it), measured over the trailing 12 months. 200-transaction test under repeal in some periods — verify.
  • Platform must provide sellers with collection reports
  • Sellers still responsible for nexus in other states

How Minneapolis's Rate Compares to Nearby Cities

Minneapolis shoppers and businesses routinely cross into Saint Paul, Bloomington, Brooklyn Park and beyond — and in Minnesota, the combined rate can change at those lines. Of the tracked neighbors, Saint Paul charges 9.875%, Bloomington charges 7.450%, Brooklyn Park charges 7.450% and Plymouth charges 8.525% versus Minneapolis's 9.025%.

Deliveries are taxed by the destination rules Minnesota applies, not by where the store sits — when an order ships across one of these city lines, re-check the rate for the exact address.

Economic Nexus & Compliance for Remote Sellers

Since South Dakota v. Wayfair, a seller with no premises, staff or stock anywhere near Minneapolis can still be required to register in Minnesota and charge 9.025% on what it ships here — presence stopped being the trigger and volume took over. The thresholds that decide it are in the table below; what they do not tell you is that crossing them obliges you to collect at the buyer's local rate, not a state average, which is why Minneapolis and its neighbours have to be priced separately. The registration mechanics and the trailing-twelve-month counting rules are in the economic nexus guide.

Taxing AuthorityHennepin County
State Sourcing ModelMinnesota sales tax is administered by the Minnesota Department of Revenue.
Economic Nexus Threshold$100,000 in gross sales, or 200 transactions (verify the transaction test — states are repealing it), measured over the trailing 12 months. 200-transaction test under repeal in some periods — verify.
Rate at this address6.875% state + 2.150% local = 9.025%
Local jurisdictionHennepin County · 20 ZIP codes
Filing FrequencyMonthly, Quarterly, or Annually (determined by state-assigned brackets)
Standard Due DateTypically on or before the 20th of the month following the filing period

Audit & Compliance Warning: Because combined tax rates combine state and local tax components, calculating tax based purely on ZIP codes can lead to errors. Many ZIP codes span multiple municipal boundaries with differing rates. For precise auditing, always use address-level geo-lookup.

Use Tax, Registration & Resale Rules for Minneapolis Businesses

Three obligations follow the 9.025% rate around Minneapolis: untaxed out-of-state purchases delivered here owe matching use tax — $90.25 on a $1,000 order — self-assessed to Hennepin County; sellers with physical presence or economic nexus must register before collecting; and wholesale sales need a valid resale certificate on file at transaction time. Filing mechanics, exemption certificates, and audit preparation are covered in the Minnesota sales tax guide.

Student & Campus Tax Rules

Minneapolis Institute of Art shapes part of Minneapolis's retail base. Textbook taxability and student purchasing rules vary by state — verify with the campus bookstore and Hennepin County.

Medical Equipment & Prescription Tax Exemptions

Prescription drugs are exempt from sales tax in Minnesota. Medical equipment purchased by licensed providers in Minneapolis may qualify for exemptions — verify with Hennepin County.

Other Cities in Minnesota

Need to calculate sales tax for another location in Minnesota? Choose a city below to view the exact rate breakdown.

Quick Lookup:Saint Paul sales tax calculator (or view Saint Paul sales tax rate)Bloomington sales tax calculator (or view Bloomington sales tax rate)Brooklyn Park sales tax calculator (or view Brooklyn Park sales tax rate)

For informational purposes only. Tax rates change frequently — verify with your state's Department of Revenue before filing. This tool is not a substitute for professional tax advice.

· Rate source metadata is tracked in the TaxesLedger tax data registry.

M. Imtinan Farooq — Data Engineer focused on financial data systems

Data methodology reviewed by M. Imtinan FarooqData Engineer focused on financial data systems.

Imtinan specializes in financial data systems and multi-state US sales tax modeling. With hands-on experience building data pipelines that attach source metadata, confidence labels, and verification status to tax records, he helps keep TaxesLedger rates auditable and easier to refresh. This is an educational calculator, not tax, accounting, or legal advice. LinkedIn

Data Sources: State DORs · Canada Revenue Agency · EU VAT authorities · Tax Foundation references

2026 sales tax rates by state

Select a state to see its detailed 2026 sales tax calculator and formula.

StateState RateAvg. LocalCombined
Alabama4.00%5.46%9.46%
Alaska0.00%1.82%1.82%
Arizona5.60%2.77%8.37%
Arkansas6.50%2.98%9.48%
California7.25%1.78%9.03%
Colorado2.90%4.82%7.72%
Connecticut6.35%0.00%6.35%
Delaware0.00%0.00%0.00%
Florida6.00%1.05%7.05%
Georgia4.00%3.37%7.37%
Hawaii4.00%0.50%4.50%
Idaho6.00%0.02%6.02%
Illinois6.25%2.73%8.98%
Indiana7.00%0.00%7.00%
Iowa6.00%0.94%6.94%
Kansas6.50%2.21%8.71%
Kentucky6.00%0.00%6.00%
Louisiana5.00%5.13%10.13%
Maine5.50%0.00%5.50%
Maryland6.00%0.00%6.00%
Massachusetts6.25%0.00%6.25%
Michigan6.00%0.00%6.00%
Minnesota6.88%1.27%8.14%
Mississippi7.00%0.06%7.06%
Missouri4.22%4.10%8.33%
Montana0.00%0.00%0.00%
Nebraska5.50%1.46%6.96%
Nevada6.85%1.39%8.24%
New Hampshire0.00%0.00%0.00%
New Jersey6.63%0.00%6.63%
New Mexico4.88%2.81%7.68%
New York4.00%4.54%8.54%
North Carolina4.75%2.22%6.97%
North Dakota5.00%1.85%6.85%
Ohio5.75%1.48%7.23%
Oklahoma4.50%4.56%9.06%
Oregon0.00%0.00%0.00%
Pennsylvania6.00%0.34%6.34%
Rhode Island7.00%0.00%7.00%
South Carolina6.00%1.43%7.43%
South Dakota4.20%1.91%6.11%
Tennessee7.00%2.61%9.61%
Texas6.25%1.95%8.20%
Utah4.85%2.21%7.06%
Vermont6.00%0.24%6.24%
Virginia4.30%1.47%5.77%
Washington6.50%3.07%9.57%
Washington D.C.6.00%0.00%6.00%
West Virginia6.00%0.39%6.39%
Wisconsin5.00%0.72%5.72%
Wyoming4.00%1.39%5.39%

Frequently asked questions

Quick answers to the most common questions users ask.

What is the sales tax rate in Minneapolis, Minnesota?
The combined sales tax rate in Minneapolis is 9.025%, which includes the 6.875% Minnesota state rate plus Hennepin County, city, and metro transit district taxes.
How much sales tax is charged on a $100 purchase in Minneapolis?
On a $100.00 purchase in Minneapolis, the sales tax is $9.03 ($9.03 = $100.00 × 0.09025), bringing the total to $109.03.
What taxes make up Minneapolis's 9.025% rate?
The rate breaks down as: Minnesota state 6.875% + Hennepin County 0.15% + Minneapolis 0.5% + Metro Area Housing 0.25% + Metro Transit 0.75% + Transit Improvement 0.5%.
Is clothing taxed in Minneapolis?
Clothing and most accessories are exempt from the Minnesota state sales tax and all local surtaxes. This makes Minnesota one of the few states that exempts clothing.
Are groceries taxed in Minneapolis?
Most unprepared food for home consumption is exempt from Minnesota sales tax. Prepared food, restaurant meals, and soft drinks are taxable.
Is sales tax higher in Minneapolis or Saint Paul?
Saint Paul charges the higher combined rate: Saint Paul is at 9.875% versus Minneapolis's 9.025% — a 0.850 percentage-point difference on every taxable purchase across the line.
What county is Minneapolis located in?
Minneapolis is located in Hennepin County, which may levy a local tax portion included in the combined rate of 9.025%.
Which ZIP codes are commonly associated with Minneapolis?
ZIP codes commonly associated with Minneapolis include: 55401, 55402, 55403, 55404, 55405, 55406, 55407, 55408, 55409, 55410, 55411, 55412, 55413, 55414, 55415, 55416, 55417, 55418, 55419, 55454. ZIP code boundaries can cross municipal lines, so verify the sales tax rate for the exact street address when filing.

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