Minneapolis Sales Tax Guide 2025 (Minnesota)
Navigating sales tax compliance in Minneapolis, Minnesota, can be challenging for businesses of all sizes. Understanding the local regulations, Minnesota sales tax rates, use tax obligations, and filing requirements is critical to staying compliant with the law 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 Minneapolis for 2025.
Minneapolis Sales Tax Rate (Minnesota)
In 1986, Minneapolis enacted a 0.5% local sales tax to fund city projects. As of 2025, the total sales tax rate in Minneapolis, MN, is 8.025%, combining the state rate of 6.875%, Hennepin County's 0.15%, and the city's 1%.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 6.875% |
| County Tax | 0.15% |
| City Tax | 1.0% |
| Special Tax | 1.50% |
| Combined Tax | 8.025% |
(Note: Sales tax rates are subject to change. Check the Minnesota Department of Revenue’s website for the latest updates.)
Minneapolis Sales Tax Calculator (Minnesota)
Step 1: Determine the Sales Tax Rate
The total sales tax rate in Minneapolis, MN, is 8.025% or 0.08025 in decimal form.
Step 2: Identify the Taxable Amount
Most tangible goods are considered taxable items, including clothing, furniture, electronics, and restaurant meals. However, some services and grocery items are tax-exempt. Let’s say you own a bike shop in downtown Minneapolis, and you sell a mountain bike for $900.
Step 3: Calculate the Sales Tax
Use the formula:
Sales Tax = Sale Price × Sales Tax Rate
900 × 0.08025 = 72.23
So, the sales tax is $72.23.
Step 4: Calculate the Total Amount the Customer Pays
Total Price = Sale Price + Sales Tax
900 + 72.23 = 972.23
Your customer owes $972.23 at checkout.
Key Takeaways for Your Business
- Minneapolis' sales tax rate is 8.025%.
- Multiply the sale price by 0.08025 to calculate the sales tax.
- Collect and remit the sales and use tax to the Minnesota Department of Revenue.
FAQ on Sales Tax in Minneapolis MN
What is the Sales Tax in Minneapolis?
The total sales tax in Minneapolis, MN, is 8.025%, including state, county, and city taxes.
How Much is Sales Tax in Minneapolis?
Sales tax in Minneapolis is 8.025%, which applies to most retail sales, services, and restaurant purchases.
Does Minneapolis Have Sales Tax?
Yes, Minneapolis has a sales tax of 8.025%, which includes the state (6.875%), Hennepin County (0.15%), and city tax (1%).
What is the Sales Tax Rate in Minneapolis MN?
The sales tax rate in Minneapolis, MN, is 8.025%, applicable to taxable goods and services.
Minneapolis Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Minneapolis?
Sales tax collection in Minneapolis is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Minneapolis.
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 Minneapolis?
In Minneapolis, 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 Minneapolis
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 Minneapolis 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 Minneapolis?
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 |
|---|---|
| Silver Lake | 7.38% |
| South Haven | 7.62% |
| Spring Park | 8.53% |
| Stewart | 7.38% |
| Victoria | 8.38% |
| Waconia | 8.53% |
| Watertown | 8.53% |
| Watkins | 7.12% |
| Waverly | 8.38% |
| Wayzata | 8.53% |
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@2025 KintsugiAI, Inc. All rights reserved.
