Minnesota Sales Tax: Rates, Rules, and How to Calculate It (2026)
Minnesota's sales tax ranges from 6.875% to 8.875% depending on location, with about 1,000 jurisdictions applying different rates. Groceries and clothing are both exempt, but SaaS gets taxed.
| Statewide base rate | 6.875% |
|---|---|
| Typical combined rate | 6.875%–8.875% |
| Are groceries taxed? | Exempt |
| Economic nexus threshold | ≈$100,000/yr (verify) |
| Taxing jurisdictions tracked | 1,023 |
| Get the exact rate | Look up any Minnesota ZIP or address instantly |
How much is sales tax in Minnesota?
Minnesota's base rate starts at 6.875%, but cities and counties can add local taxes that push the combined rate up to 8.875% in places like Duluth. With over 1,000 taxing jurisdictions, the rate varies significantly by address.
Because Minnesota has so many tax jurisdictions with different rates, address verification is essential—a single ZIP code might contain multiple tax zones. Sefro's API looks up the exact address to return the precise combined rate for that specific location.
What's taxed and what's exempt in Minnesota
Both groceries and clothing are exempt from Minnesota sales tax, giving residents relief on everyday purchases. This is unusual—most states tax at least one of these categories.
SaaS and digital software are taxable in Minnesota. Restaurant meals and prepared food are also taxable. Because Minnesota has broad exemptions for tangible goods, check whether your purchase is physical or digital before assuming the tax treatment.
Do you have to collect Minnesota sales tax? (Economic nexus)
Like most states after the 2018 Wayfair decision, Minnesota requires out-of-state sellers to register and collect once their sales into the state cross an economic-nexus threshold. That line is commonly around $100,000 of sales into Minnesota per year, and some states also count a number of separate transactions — but the exact figure, and whether the transaction count still applies, change from time to time. Confirm Minnesota's current threshold before you rely on it.
If you sell into Minnesota from out of state, the practical question is whether you've crossed that line. Watching your sales into each state is how you know when you're on the hook — and it's the kind of thing that's easy to miss until a notice shows up.
Nexus rules change often and vary by state (reviewed 2026-01-01). This is general information, not tax advice — confirm your obligations with the Minnesota Department of Revenue or a tax professional.
How to calculate Minnesota sales tax
The math itself is simple: multiply the taxable price by the combined rate for the buyer's location. A $100 order at 7.063% means about $7.06 in tax. The hard part is getting the right rate for every address, keeping it current as rates change, and doing it fast enough to run inside a checkout.
That's what Sefro does. One API call returns the combined state, county, city, and special-district rate for any US address, sourced from state Departments of Revenue and refreshed weekly. You can also calculate the full tax on an order, validate addresses, and pull return-ready reports. See how the data is sourced or pricing to start.
Look up the Minnesota sales tax rate for any ZIP
Enter a Minnesota ZIP code to see the live combined rate from the Sefro API.
Frequently asked questions
What is the sales tax rate in Minnesota?
Minnesota's state sales tax is 6.875%, but local taxes can bring the combined rate as high as 8.875%. The rate depends on your exact address, not just your ZIP code.
Are groceries taxed in Minnesota?
No, groceries and unprepared food are completely exempt from Minnesota sales tax. Clothing is also exempt. These two big exemptions make Minnesota more tax-friendly for essential purchases.
Do I have to collect Minnesota sales tax if I sell online?
Once your sales into Minnesota cross its economic-nexus threshold — commonly around $100,000 a year, sometimes with a transaction count — you generally must register and collect. Because states adjust these rules, check Minnesota's current figure before relying on it.
How do I find the exact rate for a Minnesota address?
Look up your street address or ZIP code using a tax tool. Minnesota has over 1,000 different tax zones, so Sefro's address-based API is the only reliable way to get your exact rate.
Is SaaS or digital software taxable in Minnesota?
Yes, Minnesota taxes SaaS subscriptions and digital services. Even though groceries and clothing are exempt, digital products are fully taxable.
Does Minnesota have local sales taxes on top of the state rate?
Yes, Minnesota allows hundreds of local jurisdictions to add their own sales taxes. Combined rates range from 6.875% to 8.875%, with Duluth being among the highest.
Handle Minnesota sales tax with one API call
Skip the rate tables and district lookups. Sefro returns the exact combined rate for any Minnesota address in one request — start with a free trial.
Rates and rules on this page are provided for general information only and are not tax or legal advice. Rates change; confirm the current rate and your filing obligations with the Minnesota Department of Revenue or a qualified professional. See our Terms.