2024 Sales Tax by State – Minnesota

Minnesota Sales Tax Fact Sheet For General Tangible Items

Last Tax Rate Changed on: July 1, 2024

Minnesota Sales and Use Tax Rate Lookup by Address:

Use USgeocoder Sales and Use Tax Online Lookup Tool to search state-wide, county, local and special district Sales and Use tax rates and tax reporting details for any physical address and PO Box in Minnesota.

To learn more about the latest changes, bookmark 2024 Minnesota Sales and Use Tax Rate Changes post.

Minnesota Sales tax components:
Statewide tax
Local district tax: County tax and Municipality (incorporated city) tax

Minnesota Statewide Sales Tax Rate:
6.875%

Highest Total Local District Sales Tax Rate in Minnesota:
3.00%

Highest Total Sales Tax Rate with Local District Sales Tax in Minnesota:
9.875%

Incorporated city with the Highest Sales Tax Rate in Minnesota:
St. Paul City in Ramsey county (9.875%)

Number of Counties in  Minnesota:
87

Number of Municipalities (Incorporated cities, Town & Villages) in Minnesota:
Approx. 854

Can I Use Zip Codes to Determine Correct Sales Tax Rates in Minnesota?
Not recommended

Zip codes cross city boundaries. Different cities might have different local district rates. In addition, city taxes only apply to areas within the respective incorporated city. If an address is in an un-incorporated area, city taxes do not apply. You should look for an address-based solution such as USgeocoder that can identify if the address is within an incorporated city to determine its sales tax rates in Minnesota.

Learn more about how postal zip codes, mailing cities and incorporated cities work. 

Can I Use County and City to Determine Correct Sales Tax Rates in Minnesota?
Not recommended

Municipality determines city tax rate. Municipality is incorporated city. Cities that people normally refer to are mailing cities, assigned by US Postal Office. Municipality and mailing city could be the same. However if you are not sure the municipality of an address, it’s better not to use the city to determine the sales tax.   In order to correctly calculate the sales tax rate, you should consider an address-based solution such as USgeocoder to identify its municipality, and use such information to determine its sales tax rates.

Are Sales Tax Rates and Use Tax Rates the Same in Minnesota?
Yes

Does Minnesota Have Tax Codes for Tax Return Reporting Purpose?
No

Sales and Use Tax Rate Update Schedule in Minnesota:
Update Frequency: As needed
Last Tax Rate Changed on: Aprial 1, 2024

Does Minnesota Have an Origin-Based or Destination-Based Sales Tax Collection?
Destination

Origin-based: sales tax is charged based on where the seller is located.
Destination-based: sales tax is charged based on where the buy is located

Is Minnesota a Full Member of Streamlined State?
Yes

A streamlined Full Member State is a state that has been found to be in compliance with the Streamlined Sales and Use Tax Agreement (SSUTA) and its laws, rules, regulations, and policies and bring them into compliance are in effect. See details on Streamlined Sales Tax Governing Board’s website.

Does Minnesota s Have Sales Tax Holidays?
No

Wayfair Sales Tax Implementation in Minnesota:
Sales Thresholds: $100,000, OR
Transaction Threshold: 200

Wayfair sales tax implementation applies to out-of-state sales, remote sales, Internet sales and online sales. See details on https://www.revenue.state.mn.us/sales-tax-faqs-remote-sellers.

Does Minnesota Charge Sales Tax on Digital Goods?
Generally Yes

See details on: https://www.revenue.state.mn.us/sites/default/files/2023-01/FS177.pdf

Does Minnesota Charge Sales Tax on Services?
Generally services are not taxable unless specifically included by law. Examples of taxable services include lodging, laundry and cleaning services, pet grooming, lawn care, digital downloads, and telecommunications.

See details on: https://www.house.mn.gov/hrd/pubs/ss/ssmnsltx.pdf.

Does Minnesota Charge Sales Tax on Shipping?
Generally yes

See details on https://www.revenue.state.mn.us/sites/default/files/2023-01/FS155.pdf.

Minnesota State Sales and Use Tax Authority:
Minnesota Dept of Revenue

Website: https://www.revenue.state.mn.us/sales-and-use-tax

Looking for an Online Solution that provides real-time sales tax rates for your application? 

Try USgeocoder API. It provides all the information you get from USgeocoder Live Demo.  You can use it to lookup sales and use tax rate information one address at a time. However if you have a large number of addresses and would like to save time, USgeocoder can do it for you through batch processing service.

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SALES TAX BY STATE

STATES WITH STATE AND LOCAL SALES TAX:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

STATES WITH NO SALES TAX:
Delaware, Montana, New Hampshire, Oregon

STATES WITH ONLY STATE-WIDE SALES TAX AND NO LOCAL SALES TAX:
Connecticut (6.35%), District of Columbia (6.00%), Indiana (7.00%), Kentucky (6.00%), Maine (5.5%), Maryland (6.00%), Massachusetts (6.25%), Michigan (6.00%), New Jersey (6.625%), Rhode Island (7.00%)

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DISCLAIMERS:

SALES AND USE TAX INFORMATION ON THIS BLOG REFERS TO THE GENERAL SALES OF TANGIBLE PERSONAL PROPERTY. IN MANY STATES, THERE ARE DIFFERENT RATES FOR RENTAL, LEASING, AND TANGIBLE ITEMS SUCH AS VEHICLE, EQUIPMENT, FOOD, OR CLOTHING. SOME STATES HAVE DIFFERENT SALES TAX RATES THAN USE TAX RATES. EACH STATE HAS ITS OWN RULES ON EXEMPTIONS. PLEASE REFER TO THE SALES AND USE TAX LAW OF INDIVIDUAL STATES FOR DETAILS.

USGEOCODER LLC IS NOT ASSOCIATED WITH ANY GOVERNMENT AGENCIES IN ANY MANNER. ALL INFORMATION PROVIDED ON THIS WEBSITE IS PREPARED FOR GENERAL INFORMATIONAL PURPOSES ONLY. YOU SHOULD CONSULT YOUR OWN TAX, LEGAL AND ACCOUNTING ADVISORS TO ADDRESS YOUR SPECIFIC QUESTIONS AND BEFORE ENGAGING IN ANY TRANSACTION RELATED TO SALES AND USE TAX.