Minimum Sales Rate Tax for 2024
| 6.88% | Column content | Column content | Column content | Column content | |
| 0.5% | Column content | Column content | Column content | Column content | |
| 0.15% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 9.025% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 200 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | Depends on your filing frequency | Column content | Column content | Column content | Column content |
The statewide state sales tax rate in Minnesota is 6.0%, and since the Hennepin County sales tax rate is 0.15%, the city-specific sales tax rate is 0.5% and there are an additional 1.5% of other taxes, the minimum sales tax rate for Minneapolis is 9.025%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Minneapolis, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Minneapolis
Minneapolis imposes a 3% entertainment tax on admission fees, the use of amusement devices and games, food, drinks, and merchandise sold during live performances. This includes admission to athletic events, circuses, concert halls, and fairs.
Additionally, a 3% lodging tax applies to accommodations at hotels and motels with over 50 rooms in Minneapolis, with the combined city tax on lodging capped at 6.5% (including a 0.5% Minneapolis sales tax, 3% entertainment tax, and 3% lodging tax). Other county and metro-area taxes, as well as the state sales tax, are not included in this cap. For alcoholic beverages, a 3% liquor tax is charged at on-sale establishments such as bars, clubs, hotels, motels, and restaurants in downtown Minneapolis, but it does not apply to off-sale alcohol purchases.
Services
Generally not taxable
Goods
Products like appliances, cars, furniture, electronics, and sports equipment are typically taxable
Clothing
Mostly clothing for general use is not taxed but there are exceptions
Electronics
Taxable
SaaS
Not subject to sales tax.
Digital Products
Generally taxable with some exceptions
Software
Prewritten software is taxable
Freight/Shipping
Shipping and freight charges are generally taxable if they are part of the sale of a taxable good.
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