Minnesota sales tax affects every purchase you make in the Land of 10,000 Lakes. The state charges a base rate of 6.875% on most goods and services. However, local taxes can push your total bill even higher. The average combined rate across the state is 8.14%. That ranks Minnesota among the higher-tax states in the country. Understanding what you pay — and what you don’t — can save you real money. This guide breaks down everything Minnesota shoppers need to know in 2026.
Minnesota Sales Tax Rate: The Basics
The Minnesota sales tax rate starts at 6.875% at the state level. Cities and counties then add their own local taxes on top. As a result, the combined rate you actually pay depends on where you shop. The national average combined rate sits around 7.00%. Minnesota’s average combined rate of 8.14% runs well above that mark.
| Component | Rate |
|---|---|
| Minnesota State Sales Tax | 6.875% |
| Average Local Tax | 1.26% |
| Average Combined Rate | 8.14% |
| National Average Combined Rate | ~7.00% |
In addition, the seven-county Twin Cities metro area charges a 1.00% regional tax. That extra tax funds transit and affordable housing. It applies in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties. If you shop in the metro, you’re already paying more than the state rate alone.
What Minnesota Does and Does Not Tax
Minnesota sales tax does not apply to everything. The state offers some of the most shopper-friendly exemptions in the country. Specifically, groceries, clothing, and medicine are all tax-free. These permanent exemptions save Minnesota families hundreds of dollars each year.
| Category | Taxed? | Details |
|---|---|---|
| Groceries (unprepared food) | Exempt | Most food for home cooking is tax-free |
| Clothing & shoes | Exempt | General-use clothing and footwear are exempt |
| Prescription drugs | Exempt | All prescription medications are tax-free |
| Over-the-counter drugs | Exempt | OTC medicine with a Drug Facts panel is exempt |
| Baby products | Exempt | Car seats, cribs, strollers, and diapers |
| Prepared food / restaurants | Taxable | Hot food, food sold with utensils, and restaurant meals |
| Candy & soda | Taxable | Candy, gum, and sweetened drinks are taxed |
| Electronics | Taxable | Phones, TVs, computers, and accessories |
| Furniture & appliances | Taxable | Full combined rate applies |
| Vitamins & supplements | Taxable | Classified as dietary supplements, not drugs |
| Fur clothing | Taxable | Not covered by the clothing exemption |
For example, you can buy a winter coat and a bag of groceries completely tax-free. However, pick up a candy bar and a soda at checkout, and you’ll pay Minnesota sales tax on those items. The distinction between groceries and prepared food matters too. A rotisserie chicken from the hot case is taxable. A raw chicken from the meat aisle is not.
Minnesota Sales Tax by City and County
Local rates vary significantly across the state. The biggest factor is whether you shop in the Twin Cities metro area. Hennepin County adds both a 0.15% ballpark tax and a 0.50% transportation tax. Cities like Minneapolis and St. Paul layer on their own rates too. Meanwhile, many rural areas charge only the base state rate of 6.875%.
| City | Combined Rate | Notes |
|---|---|---|
| St. Paul | 9.875% | Highest major city rate in the state |
| Minneapolis | 9.025% | Includes metro, county, and city taxes |
| Bloomington | 9.025% | Home of Mall of America |
| Duluth | 8.875% | Rates vary by ZIP within city limits |
| Brooklyn Park | 8.375% | Hennepin County metro suburb |
| Plymouth | 8.375% | Hennepin County metro suburb |
| Rochester | 8.125% | Olmsted County, home of Mayo Clinic |
| Mankato | 7.875% | Southern Minnesota regional hub |
St. Paul charges the highest combined Minnesota sales tax rate among major cities at 9.875%. That means a $500 laptop costs you $549.38 in St. Paul. The same laptop in a rural town with no local tax costs $534.38. That’s a $15 difference on a single purchase. For big-ticket items, where you buy matters.
Minnesota Sales Tax Holidays
Minnesota does not offer any sales tax holidays in 2026. The state has never enacted a temporary tax-free shopping weekend. However, the permanent exemptions on clothing and groceries make up for it. In many other states, shoppers wait for a once-a-year holiday just to buy clothes tax-free. Minnesota shoppers enjoy that benefit every single day.
Nearby states with sales tax holidays include Iowa and Wisconsin. Iowa typically holds a back-to-school holiday in August. However, driving across state lines to save a few dollars rarely makes sense. You’re better off taking advantage of Minnesota’s year-round exemptions and timing your purchases around seasonal sales. Check our month-by-month buying calendar for the best times to shop.
Online Shopping and Minnesota Sales Tax
Minnesota uses destination-based sourcing for online purchases. That means you pay the combined rate for your delivery address. If you live in Minneapolis, you’ll pay 9.025% on Amazon orders. If you live in a rural area with no local tax, you’ll pay just 6.875%.
All major online retailers collect Minnesota sales tax automatically. Amazon, Walmart, Target, eBay, and Etsy all handle tax collection as marketplace facilitators. You don’t need to do anything extra. The correct rate appears at checkout based on your shipping address. In addition, any remote seller with over $100,000 in Minnesota sales or 200+ transactions must collect tax.
Specifically, there is no way to legally avoid Minnesota sales tax on online purchases shipped to a Minnesota address. Even small sellers on marketplace platforms have tax collected on their behalf. For tips on getting the best online deals before tax is added, browse our complete guide to saving money shopping online.
Smart Shopping Tips for Minnesota
1. Prioritize tax-exempt categories. Minnesota’s clothing exemption is powerful. Stock up on shoes, outerwear, and everyday clothing without paying a cent in sales tax. Pair this with seasonal sales and coupon stacking strategies for maximum savings.
🔥 Get Free Deal Alerts
Free · No spam · Unsubscribe anytime
2. Shop outside the metro for big purchases. If you’re buying furniture, appliances, or electronics, the difference between 9.875% in St. Paul and 6.875% in a rural area adds up fast. On a $2,000 appliance, that’s a $60 savings. It’s worth the drive for major purchases.
3. Know the grocery line. Unprepared food is tax-free. Prepared food is not. Skip the hot bar and deli counter when you’re trying to stretch your budget. Cook at home with tax-free groceries and save the Minnesota sales tax on every meal.
4. Use cashback apps on taxable items. Since you can’t avoid the tax on electronics and household goods, offset it with cashback. Our cashback app reviews cover the best options for Minnesota shoppers.
5. Check your vehicle tax before buying. Cars are taxed at the state rate of 6.875%. However, vehicles over 10 years old and under $3,000 qualify for a flat $10 tax instead. If you’re buying a used car, this exception can save you hundreds. Trade-in value also reduces the taxable amount on your new purchase.
For more ways to keep costs down, explore our full library of shopping guides built for everyday consumers.
Frequently Asked Questions
What is the sales tax rate in Minnesota?
The Minnesota sales tax rate is 6.875% at the state level. Local taxes bring the average combined rate to 8.14%. Your actual rate depends on where you shop. It ranges from 6.875% in areas with no local tax to 9.875% in St. Paul.
Are groceries taxed in Minnesota?
No. Most groceries and unprepared food items are exempt from Minnesota sales tax. However, candy, soda, and prepared food are taxable. If the item is sold hot or comes with utensils, expect to pay tax on it.
Does Minnesota have a sales tax holiday?
No. Minnesota does not have a sales tax holiday and has never offered one. However, the state’s permanent exemptions on clothing, groceries, and medicine provide year-round savings that many other states only offer for a weekend each year.
Start Saving on Every Purchase
Now that you know your state’s sales tax rates, use that knowledge to time your purchases and stack savings. Combine tax-free shopping periods with cashback apps and coupon codes to keep more money in your pocket.
Official Sources
- Tax Foundation — state and local sales tax data
- IRS.gov — federal tax information
- FTC Consumer Information — shopping rights and protections
Rates current as of May 2026. Sales tax rates change periodically. Always verify current rates with your state’s revenue department.