How Minnesota Sales Tax Works
Minnesota's state government imposes a 6.88% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 8.05% statewide.
Minnesota is one of the few states that exempts both groceries and clothing entirely from sales tax — a meaningful break for working families.
Groceries in Minnesota
Minnesota exempts unprepared groceries from sales tax.
Clothing in Minnesota
Minnesota fully exempts clothing from sales tax — one of the most generous clothing exemptions in the country.
How Minnesota Compares to Neighboring States
Sales tax on a $1,000.00 purchase in Minnesota versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. Minnesota |
|---|---|---|---|---|
| Minnesota (here) | 6.88% | 8.05% | $80.50 | — |
| Wisconsin | 5.00% | 5.70% | $57.00 | -$23.50 |
| Iowa | 6.00% | 6.94% | $69.40 | -$11.10 |
| South Dakota | 4.20% | 6.11% | $61.10 | -$19.40 |
| North Dakota | 5.00% | 7.04% | $70.40 | -$10.10 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the Minnesota sales tax rate for 2026?
Minnesota's state sales tax rate is 6.88% for 2026. When combined with the average local sales tax of 1.18%, most Minnesota residents pay a typical combined rate of 8.05%.
How much sales tax will I pay on a $100 purchase in Minnesota?
On a $100 purchase, expect approximately $6.88 in state sales tax, or about $8.05 including average local sales tax (combined 8.05%). Total cost: roughly $108.05.
Are groceries taxed in Minnesota?
Minnesota exempts unprepared groceries from sales tax.
Is clothing taxed in Minnesota?
Minnesota fully exempts clothing from sales tax — one of the most generous clothing exemptions in the country.
Is sales tax calculated before or after discounts in Minnesota?
Minnesota follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this Minnesota sales tax estimate calculated?
The calculator applies Minnesota's 6.88% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with Minnesota's Department of Revenue tool.