Minnesota Sales Tax Calculator 2026 — 6.88% Rate

Minnesota Sales Tax Rate: State vs Combined

The Minnesota state sales tax rate is 6.88%. However, most shoppers pay more than the state rate because counties and cities add their own local taxes on top. The average combined rate across all jurisdictions in Minnesota is 7.49%, according to Tax Foundation 2026 data. This means a $100 purchase could cost between $106.88 (state only) and more in high-tax localities.

What Is and Isn't Taxed in Minnesota

Minnesota exempts most unprepared grocery items from state sales tax, which helps reduce the cost of essential food purchases. Minnesota exempts most clothing items from state sales tax, making it a tax-friendly state for apparel purchases. Prescription drugs are also exempt from sales tax in Minnesota.

Minnesota Sales Tax Holidays

Minnesota exempts most clothing from state sales tax. During a sales tax holiday, qualifying items are sold without collecting state sales tax — and sometimes local sales tax too. Check the Minnesota Department of Revenue website for exact dates, eligible items, and price limits each year.

How to Calculate Minnesota Sales Tax

To calculate Minnesota sales tax: multiply the purchase price by the applicable rate. For the state rate only: price × 6.88% = tax. For the combined rate: use 7.49% for an average estimate, or enter the exact local rate from your receipt or the Minnesota Department of Revenue website. Example: a $200 purchase at the 7.49% combined rate = $14.98 in tax = $214.98 total.

Tips for Accurate Sales Tax Calculations

Always confirm the exact local rate for your specific city or county — the combined average (7.49%) is a statewide mean and may differ from your actual checkout rate. Large purchases like vehicles, appliances, or electronics are where the difference between state-only and combined rates matters most. Keep receipts that show the tax rate used; this helps verify correct tax was charged and supports any refund claims for exempt purchases. If you are making a business purchase, check whether your state offers a sales tax exemption certificate to avoid paying tax on resale items.

Minnesota Special Sales Tax Categories (Vehicles, Liquor, Prepared Food)

Minnesota applies different rates and special taxes to specific categories. Per the Minnesota Department of Revenue: motor vehicles are taxed at 6.875% Motor Vehicle Sales Tax (not regular sales tax); liquor stores collect 6.875% state + a 2.5% liquor gross receipts tax (9.375% effective); prepared food/restaurant meals in some cities (Minneapolis, St. Paul) add a 3% local entertainment/meals tax on top of the standard rate. Hennepin County also adds a 0.5% transit improvement tax. The state Local Sales Tax Rate Lookup tool on revenue.state.mn.us returns the exact rate for any 9-digit ZIP+4 — use it for high-value purchases. Updated 2026-07-13.

Minnesota Sales Tax Calculator: City-by-City Worked Examples

Per the MN DOR Sales Tax Rate Calculator, the rate depends on the 9-digit ZIP. Minneapolis (Hennepin County): $500 electronics × 8.025% (6.875% state + 0.15% Hennepin + 0.5% transit + 0.5% city) = $40.13 → $540.13. Saint Paul (Ramsey): $500 × 7.875% = $39.38 → $539.38. Duluth (St. Louis): $500 × 8.875% (city +1.0% + transit +0.5%) = $44.38 → $544.38. Rochester (Olmsted): $500 × 7.625% = $38.13. Restaurant meal in Minneapolis: $80 dinner × 11.025% (combined + 3% downtown meals) = $8.82 → $88.82. Clothing $200 jacket: $0 tax (state exempt; local exempt). Vehicle $25,000 with $5,000 trade-in: $20,000 × 6.875% MVST = $1,375. Liquor $30 bottle: $30 × 9.375% = $2.81. Last updated: 2026-07-13.

Minnesota Sales Tax Holidays and 2026 Legislative Changes

Unlike many states, Minnesota does not hold a general sales tax holiday — no back-to-school weekend, no severe-weather-prep weekend. The MN legislature has debated one repeatedly (most recently in the 2023 and 2024 sessions) but has not enacted one, citing revenue impact and preference for the broad clothing exemption (which effectively serves as a permanent back-to-school break). Two 2026 rate changes to note: the Minneapolis 0.5% city sales tax was extended through 2032 by council vote; and a new Anoka County 0.25% transportation sales tax took effect January 1, 2026. Any future rate change is published by the MN Department of Revenue Announcements page at least 90 days before the effective date. Check that page before any large purchase to be sure the calculator is using current rates.