Minnesota has a 6.875% state sales tax, plus local taxes that vary by city and county
Minnesota charges a state sales tax of 6.875% on most retail purchases. On top of that, cities and counties add their own local sales taxes, which range from 0.25% to 2.375% depending on where you shop. Your total sales tax bill is the combination of both — so if you buy something in Minneapolis, you pay 6.875% state tax plus Minneapolis's local rate.
The state tax rate has been 6.875% since 2008. Local rates change less often, but they do vary significantly across the state. A purchase that costs $100 in one Minnesota city might have a different total tax than the same purchase in another city 20 miles away.
Not everything sold in Minnesota is taxed at the same rate. Some items are taxed at a lower rate, some are not taxed at all, and some purchases are exempt depending on who is buying and why.
Key Takeaways
- Minnesota's state sales tax is 6.875%, and most cities and counties add local sales tax on top of that, bringing your total rate between 6.875% and 9.25%.
- Groceries, prescription medications, and medical devices are not subject to sales tax in Minnesota.
- Clothing and shoes under $100 per item are taxed at 4.5% instead of the full 6.875% rate.
- Prepared food, restaurant meals, and alcohol are taxed at the full state rate plus local tax.
What is taxed at the full 6.875% rate
Most retail goods and services are taxed at Minnesota's full state rate. This includes clothing and shoes over $100, electronics, furniture, household goods, and most personal care items. Restaurant meals and prepared foods are also taxed at the full rate, as are alcoholic beverages.
Services like haircuts, dry cleaning, and vehicle repairs are taxed. Rental cars are taxed. Hotel rooms are taxed. If you are buying something tangible or paying for a service that is not on the exemption list, assume it is taxed at the full rate.
Items and purchases that are not taxed
Groceries — unprepared food you buy to cook at home — are not taxed in Minnesota. This includes meat, produce, dairy, bread, cereal, and canned goods. The key word is unprepared: if the food is ready to eat or has been prepared for you, it is taxed.
Prescription medications are not taxed. Over-the-counter medications like aspirin, cold medicine, and antacids are taxed, but prescription drugs are not. Medical devices prescribed by a doctor — such as diabetic test strips, hearing aids, or orthopedic braces — are also not taxed.
Certain services are exempt. Medical services performed by licensed healthcare providers are not taxed. Veterinary services are not taxed. Childcare services are not taxed. Educational services provided by schools and colleges are not taxed.
Clothing and shoes under $100 have a lower tax rate
Minnesota has a special rule for clothing and shoes: if a single item costs less than $100, it is taxed at 4.5% instead of the full 6.875% state rate. This applies to the item's price before tax. A pair of shoes priced at $99 gets the 4.5% rate; a pair priced at $100 or more gets the full rate.
This rule applies to most clothing and footwear — shirts, pants, dresses, coats, socks, boots, and sneakers all may have access to. It does not apply to accessories like hats, gloves, scarves, belts, or jewelry, which are taxed at the full rate regardless of price.
Local sales tax rates vary by location
On top of the state tax, your city or county may charge additional sales tax. Minneapolis has a local rate of 0.5%. St. Paul has 0.5%. Hennepin County adds another 0.625%. The combination means shoppers in some parts of the Twin Cities pay 7.875% or 8.125% total.
Outside the metro area, local rates differ. Some rural counties have no local sales tax at all, so residents pay only the 6.875% state rate. Others have local rates up to 2.375%. Your receipt will show the exact rate charged, broken down by state and local portions.
If you are shopping online or by mail order, the sales tax is based on where the item is being shipped, not where you live or where the seller is located. A purchase shipped to a Minneapolis address is taxed at Minneapolis rates, even if you ordered from a seller in another state.
What happens when you buy from out-of-state sellers
If you order something online from a company outside Minnesota and have it shipped to a Minnesota address, Minnesota sales tax still applies. The seller is required to collect it — either at checkout or on the invoice. This is true whether the seller has a physical store in Minnesota or not.
Some older online sellers do not collect Minnesota tax. If that happens, you are technically responsible for paying "use tax" to Minnesota when you file your state income tax return. In practice, most people do not report individual purchases this way. The state focuses enforcement on large transactions and businesses rather than individual consumers.
Frequently Asked Questions
Is there sales tax on groceries in Minnesota?
No. Unprepared food you buy to cook at home — produce, meat, dairy, bread, cereal, frozen vegetables — is not taxed. Prepared foods like deli items, rotisserie chicken, and bakery items ready to eat are taxed at the full rate.
Do I pay sales tax on prescription drugs?
No. Prescription medications are not taxed in Minnesota. Over-the-counter medications like pain relievers and cold medicine are taxed at the full rate. Medical devices prescribed by a doctor are also not taxed.
Why do some clothing items cost more in tax than others?
Items under $100 are taxed at 4.5%; items $100 and over are taxed at 6.875%. A $99 shirt pays less tax than a $100 shirt. Accessories like hats and belts are always taxed at the full rate, regardless of price.
What is the total sales tax rate where I live?
Add Minnesota's state rate of 6.875% to your local rate. Your city or county rate appears on your receipt. Rates range from 6.875% (state only, in some areas) to 9.25% (state plus local). Check your last receipt or contact your city assessor's office for your exact local rate.
Do I owe Minnesota tax on items I buy online from other states?
Yes. The seller should collect Minnesota sales tax at checkout based on your shipping address. If they do not, you may owe use tax when you file your state return, though enforcement on individual purchases is rare.