Free Minnesota Sales Tax Calculator

Minnesota Sales Tax Calculator

By ZIP Code
By Tax Region

State Tax Rate: 0% => $0.00

County Tax Rate: 0% => $0.00

City Tax Rate: 0% => $0.00

Special Tax Rate: 0% => $0.00


Total Tax Rate: 0%

Total Tax Amount: $0.00

Total (Amount + Tax): $0.00

For the complete list of over 32,000 ZIP code sales tax rates, download the Official Minnesota Excel Lookup Tool. 

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How to Use the Minnesota Sales Tax Calculator

This calculator is designed to be simple and intuitive. Just follow these steps to calculate the sales tax for your purchase in Minnesota:

  1. Choose Your Location:

    • Select either the “By ZIP Code” tab or the “By Tax Region” tab, depending on how you want to find your location.
    • ZIP Code Tab: If you choose the ZIP Code tab, start typing your ZIP code into the field, and select it from the dropdown menu when it appears.
    • Tax Region Tab: If you select the Tax Region tab, choose your city or tax region from the dropdown menu.
  2. Enter Purchase Amount:

    • In the “Taxable Amount (USD)” field, enter the total cost of the items you’re purchasing.
  3. Special Tax Rates (Optional):

    • Some areas in Minnesota have special sales tax rates in addition to the standard state, county, and city rates. If you’re in one of these areas and want to include these rates in your calculation, check the box that says “Include Special Rate (if applicable).”
  4. Calculate:

    • Once you’ve entered all the necessary information, click the “Calculate Tax” button.
  5. View Results:

    • The calculator will display a detailed breakdown of the sales tax rates and amounts, including:
      • State tax rate and amount
      • County tax rate and amount
      • City tax rate and amount
      • Special tax rate and amount (if applicable)
      • Total tax rate and amount
      • Total cost of your purchase, including sales tax

Understanding Minneapolis Special Local Taxes

When calculating sales tax in Minneapolis, it’s important to be aware of the city’s unique local taxes that can be added to the state general sales tax rate. These taxes fund various initiatives and services within the city. Here’s a breakdown of the key taxes you might encounter:

Minneapolis Entertainment Tax

This 3% tax applies citywide to various entertainment activities and services, including:

  • Admission Fees: This includes tickets to events like concerts, plays, sporting events (with some exceptions), fairs, and festivals. It applies regardless of where you purchase the tickets. Delivery charges are included, but convenience fees are not.
  • Amusement Devices and Games: Charges for using amusement devices like bowling alleys, carnival rides, and arcade games are subject to this tax.
  • Food and Drinks During Live Performances: Any food, drinks, or merchandise sold in public places during live performances, including intermissions, are taxed. This applies to venues like bars, coffeehouses, restaurants, and hotels that offer live entertainment.
  • Short-Term Lodging: Hotel stays and other short-term lodging accommodations within Minneapolis city limits are subject to the entertainment tax. However, rentals exceeding 30 days with a written agreement are exempt.

Important Notes:

  • The entertainment tax does not apply to events outside Minneapolis city limits, even if the tickets were purchased in Minneapolis.
  • Sporting events for regular season school games (grades 1-12) are exempt from the entertainment tax.
  • Non-profit arts organizations may be exempt from the entertainment tax for artistic performances.

Metro Area Taxes

As of October 1, 2023, two new metro area sales and use taxes apply to purchases made in the seven-county Twin Cities area, including Minneapolis:

  • Metro Area Sales and Use Tax for Housing (0.25%): This tax supports housing projects and state rent assistance.
  • Metro Area Transportation Sales and Use Tax (0.75%): This funds transportation projects in the metro area.

Other Applicable Taxes

In addition to the entertainment tax and metro area taxes, the following taxes may also apply to your purchases in Minneapolis:

  • State General Sales Tax (6.875%)
  • Hennepin County Sales Tax (0.15%)
  • Hennepin County Transit Sales Tax (0.5%)
  • Minneapolis Sales Tax (0.5%)
  • Minneapolis Lodging, Restaurant, and Liquor Taxes (may apply depending on the specific location and nature of the purchase)

Minneapolis Tax Combinations

To give you a clearer picture, here are examples of how these taxes might combine:

  • General Merchandise: 6.875% (state) + 0.15% (county) + 0.5% (county transit) + 0.5% (city) + 0.25% (housing) + 0.75% (transportation) = 8.025% total sales tax rate
  • Entertainment Event with Food and Drinks: All of the above + 3% (entertainment) = 11.025% total sales tax rate
  • Short-term Lodging: All of the above + 3% (entertainment) + potentially lodging tax (if applicable)

Where to Find More Information:

  • Minnesota Department of Revenue: They administer these special local taxes and provide detailed fact sheets. You can find their contact information and publication number on the fact sheet you provided.
A stack of perfect USD

Who Needs to Register for Sales Tax in Minnesota?

Requirement Description
Who Needs to Register? You must register and collect sales tax in Minnesota if you have a taxable presence or nexus in the state, even if you are an out-of-state retailer or marketplace provider.
Physical Presence You maintain a physical location in Minnesota, such as an office, warehouse, distribution center, sales, or sample room.
Remote Sales You sell products to Minnesota customers via the internet, mail order, or telephone and do not meet the Small Seller Exemption.
Sales Volume Threshold You have either:
- 200 or more retail sales shipped to Minnesota over 12 consecutive months
- More than $100,000 in retail sales shipped to Minnesota over 12 consecutive months
Employee or Representative in Minnesota You have an employee, agent, representative, or independent contractor working on behalf of your business in Minnesota.
Marketplace Facilitators You facilitate the sale of taxable goods or services on behalf of a business to Minnesota customers.
Direct Deliveries You deliver items into Minnesota using your own vehicles.
Taxable Services You provide taxable services within the state.
Property Ownership You own, lease, or maintain real or tangible personal property in Minnesota.
Inventory in Fulfillment Centers Your inventory is stored in a fulfillment center within Minnesota.
Affiliate Nexus You are affiliated with a Minnesota retailer who promotes or provides other services related to your business.
Commission-Based Agreements You have an agreement with a Minnesota resident for a commission or referral-based sales through website links or other methods.
Business Activity Requirement You conduct business activity in Minnesota for at least four days during a 12-month period. See Revenue Notice #19-03.
Small Seller Exception
Thresholds for Small Seller Exception Remote sellers must collect and remit sales tax if they exceed:
- 200 or more retail sales shipped to Minnesota over 12 months
- More than $100,000 in retail sales shipped to Minnesota
Definition of a Retail Sale A retail sale is a single transaction, even if multiple items are purchased together.
Exempt Sales Exclude sales where the purchaser buys for resale. A completed Form ST3, Certificate of Exemption, must be provided.
What if I Do Not Make Taxable Sales?
Nontaxable Sales If you sell only nontaxable items, you do not need to register for a sales tax account.
Use Tax Requirement If you make purchases subject to tax, you may need to register for use tax. See Use Tax for Businesses.

Data Retrieved From: https://www.revenue.state.mn.us/

A blue stack of USD

Understanding Minnesota Use Tax for Businesses

Sales tax isn’t always charged on taxable goods and services in Minnesota. If you’re a business owner, you might need to pay use tax instead. This section explains what use tax is, when you owe it, and how to calculate and pay it.

What is Use Tax?

Use tax is a complementary tax to sales tax. It applies to purchases of taxable items or services when sales tax wasn’t collected. This ensures that all taxable transactions are taxed fairly, regardless of where the purchase occurred.

When Do You Owe Use Tax?

Here are common scenarios where businesses owe use tax:

  • Online Purchases: If you buy taxable items online from a seller who doesn’t charge Minnesota sales tax, you owe use tax. This includes common business purchases like computer equipment, office supplies, and furniture.
  • Items Taken from Inventory: If you take a taxable item from your business inventory for your own use, you owe use tax on its cost.
  • Donations and Gifts: If you receive donated or gifted taxable items and didn’t pay sales tax on them originally, you owe use tax, even if the item is donated to a tax-exempt organization.
  • Construction Materials: Contractors often owe use tax on materials used in Minnesota construction projects if sales tax wasn’t paid initially.
  • Fuel: Fuel used for non-highway purposes is subject to use tax if sales tax and petroleum tax weren’t paid or were refunded.
  • Bundled Sales: If you buy a bundle of products or services where the price isn’t itemized and at least one item is taxable, you may owe use tax on the taxable portion.

Exemptions and Credits

  • Capital Equipment: You can claim an exemption for capital equipment at the time of purchase using Form ST3, Certificate of Exemption.
  • Occasional Sales: If you buy used equipment from another business that qualifies for the occasional sale exemption, you don’t owe use tax.
  • Tax Paid to Another State: If you paid sales tax to another state on a purchase and bring it to Minnesota, you might get a credit. You’ll owe the difference if Minnesota’s rate is higher.

How to Calculate and Pay Use Tax

  • Determine Taxable Amount: The use tax rate is the same as the sales tax rate where you’ll use the item or service. This includes state and applicable local rates.
  • Keep Records: Maintain a system to track purchases subject to use tax. This could be a dedicated account or a file with invoices.
  • Report and Pay: Report use tax on your Minnesota Sales and Use Tax return.

Tips for Managing Use Tax

  • Review Vendors: Identify vendors who don’t charge Minnesota sales tax and be prepared to accrue use tax on those purchases.
  • Review Invoices: Carefully examine invoices for taxable items or services where sales tax wasn’t charged.
  • Seek Guidance: Refer to the Minnesota Department of Revenue’s fact sheets and guides for detailed information on use tax and related topics.

Important Notes

  • This information is for general guidance only. Tax laws can be complex and change periodically.
  • Always consult the official resources from the Minnesota Department of Revenue for the most up-to-date and accurate information. You can find their contact information and publication number on the fact sheet you provided.

Special Local Sales Taxes in Minnesota

In addition to the state general sales tax and regular local sales taxes, certain cities and areas in Minnesota have implemented special local sales taxes. These taxes fund specific projects and services within those localities. Here’s a breakdown of some key locations and their special taxes:

Detroit Lakes

1% Food and Beverage Tax: Applies to sales of food and beverages by restaurants or places of refreshment within the city. This includes on-sale liquor and fermented malt beverages, regardless of whether consumed on or off the premises. Off-sale liquor is exempt.

Giants Ridge Recreation Area (City of Biwabik)

  • 2% Admissions and Recreation Tax: Applies to admissions to entertainment and recreational facilities, as well as rental of recreation equipment within the area. Season tickets and passes are exempt.
  • 1% Food and Beverage Tax: Similar to Detroit Lakes, this tax applies to food and beverage sales by restaurants and places of refreshment, including on-sale liquor and fermented malt beverages. Off-sale liquor is exempt.
  • 2% Lodging Tax: Applies to lodging accommodations within the recreation area.

Mankato

  • 0.5% Food and Beverage Tax: Applies to food and beverage sales by restaurants or places of refreshment within the city. Off-sale liquor is exempt.
  • 0.5% Entertainment Tax: Applies to admissions to entertainment events within Mankato. Certain events, like amusement parks, fairs, and sporting events, are exempt.
  • 3% Lodging Tax: Applies to lodging accommodations within the city.

Marshall

  • 1.5% Food and Beverage Tax: Applies to food and beverage sales by restaurants or places of refreshment, including on-sale liquor and fermented malt beverages. Off-sale liquor is exempt.

North Mankato

  • 0.5% Food and Beverage Tax: Applies to food and beverage sales by restaurants or places of refreshment, including on-sale liquor and fermented malt beverages. Off-sale liquor is exempt.

Proctor

  • 1% Food and Beverage Tax: Applies to food and beverage sales by restaurants or places of refreshment, including on-sale liquor and fermented malt beverages. Off-sale liquor is exempt.

St. Cloud

  • 1% Liquor Tax: Applies to retail sales of alcoholic beverages at licensed liquor establishments in St. Cloud.
  • 1% Food Tax: Applies to food and beverages sold by restaurants and places of refreshment.

Lodging Taxes

Several cities and counties have lodging taxes, including:

  • Giants Ridge Recreation Area (city of Biwabik)
  • Grand Rapids
  • Plymouth
  • Rochester
  • St. Paul
  • Two Harbors
  • Woodbury
  • Lake County
  • Lake of the Woods County
  • Mankato
  • Ortonville

These taxes typically range from 2% to 3% and apply to hotels, motels, and similar establishments.

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Location Lodging Tax Additional Taxes
Giants Ridge Recreation Area (Biwabik) 2.0% 6.875% state general rate sales tax
0.5% St. Louis County Transit Tax
Grand Rapids 3.0% 6.875% state general rate sales tax
0.5% Grand Rapids Sales and Use Tax
1.0% Itasca County Sales and Use Tax
Lake County 4.0% 0.5% Lake County Transit Sales and Use Tax
6.875% state general rate sales tax
Lake of the Woods County 3.0% 6.875% state general rate sales tax
Lodging establishments in Baudette city limits are not subject to lodging tax (effective June 30, 2022)
Mankato 3.0% 6.875% state general rate sales tax
0.5% Mankato Sales and Use Tax
0.5% County Transit Tax (Blue Earth or Nicollet)
Ortonville 3.0% 6.875% state general rate sales tax
Plymouth 3.0% 6.875% state general rate sales tax
0.15% Hennepin County Sales and Use Tax
0.5% Hennepin County Transit Sales and Use Tax
0.25% Metro Area Sales Tax for Housing
0.75% Metro Area Transportation Sales Tax
Rochester 7.0% 6.875% state general rate sales tax
0.75% Rochester Sales and Use Tax
0.50% Olmsted County Transit Sales and Use Tax
St. Paul 7.0% (50+ rooms)
3.0% (<50 rooms)
6.875% state general rate sales tax
1.5% St. Paul Sales and Use Tax
0.5% Ramsey County Transit Sales and Use Tax
0.25% Metro Area Sales Tax for Housing
0.75% Metro Area Transportation Sales Tax
Two Harbors 1.0% 4.0% Lake County Lodging Tax
6.875% state general rate sales tax
1.0% Two Harbors Sales and Use Tax
0.5% Lake County Transit Sales and Use Tax
Woodbury 3.0% 6.875% state general rate sales tax
0.5% Washington County Transit Sales Tax
0.25% Metro Area Sales Tax for Housing
0.75% Metro Area Transportation Sales Tax

Data Retrieved From: https://www.revenue.state.mn.us/

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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