Austin Sales Tax Guide 2025 (Minnesota)
Navigating sales tax and use tax compliance in Austin, Minnesota, can be challenging for businesses of all sizes. Understanding the local regulations, charges related to Minnesota sales tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Austin for 2025.
Austin Sales Tax Rate (Minnesota)
In 2006, Austin, Minnesota, implemented a 0.5% local sales tax to fund community projects. As of 2025, the total sales tax rate in Austin is 7.88%, combining the state rate of 6.88% and the local rate of 1%.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 6.88% |
| County Tax | 0.00% |
| City Tax | 0.50% |
| Special Tax | 0.50% |
| Combined Tax | 7.88% |
(Note: Sales tax rates are subject to change. Check the Minnesota Department of Revenue’s website for the latest updates.)
Austin Sales Tax Calculator (Minnesota)
Step 1: Determine the Sales Tax Rate
Austin’s total sales tax rate = 7.875% (0.07875 as a decimal)
This means for every dollar of taxable sales, you must collect $0.07875 in sales tax.
Step 2: Identify the Taxable Amount
Sales tax applies to most retail goods, such as clothing, electronics, and furniture. Some services may also be taxable. Let’s say you own a hardware store and sell a power drill for $250.
Step 3: Calculate the Sales Tax
Use the formula:
Sales Tax = Sale Price × Sales Tax Rate
250 × 0.07875 = 19.69
So, the sales tax is $19.69.
Step 4: Calculate the Total Amount the Customer Pays
Total Price = Sale Price + Sales Tax
250 + 19.69 = 269.69
Your customer pays $269.69 at checkout.
Key Takeaways for Your Business
- Austin’s total sales tax is 7.875% (state + local tax).
- Multiply the sale price by 0.07875 to find the sales tax.
- Collect and remit the correct amount to the Minnesota Department of Revenue.
FAQ on Sales Tax in Austin MN
What is the Sales Tax Rate in Austin MN?
The sales tax rate in Austin, MN is 7.875%, which includes the state tax of 6.875% and a local tax of 1%.
Austin Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Austin?
Sales tax collection in Austin is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Austin.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Minnesota.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Austin?
In Austin, Minnesota, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like General Clothing, Grocery Food, Machinery, Raw Materials, Utilities & Fuel, Medical Devices, Medicines, Newspapers, General Occasional Sales, Motor Vehicles Occasional Sales, General Optional Maintenance Contracts, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Austin
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.revenue.state.mn.us/sales-and-use-tax.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.revenue.state.mn.us/sales-and-use-tax by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Austin often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Austin?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
Ready to automate your sales tax?
Find Sales Tax Information for Other Cities in Minnesota
Looking for sales tax rates and compliance details for other cities in Minnesota? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Rochester | 8.12% |
| Adams | 7.38% |
| Altura | 7.38% |
| Blooming Prairie | 7.38% |
Ready to automate your sales tax?
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2261 Market St, Suite 5931 San Francisco, CA 94114
@2025 KintsugiAI, Inc. All rights reserved.
