Minnesota's sales tax is one statewide rate with unusually broad exemptions and a long list of taxable services. This guide sets out the rate, the main exemptions and their limits, the services that are taxed, how local taxes and use tax work, and the separate 50-cent retail delivery fee, using the Minnesota Statutes as published by the Revisor of Statutes and read on 2 November 2026.
The Department of Revenue's own pages could not be read automatically for this guide, so every rule here is taken from the statute text. We do not list local rates or filing procedures, which the Department publishes.
Minnesota Statutes section 297A.62 imposes two layers of state sales tax on retail sales made in Minnesota or delivered to a destination in the state. Subdivision 1 sets "a sales tax of 6.5 percent", and subdivision 1a adds "an additional sales tax of 0.375 percent, as required under the Minnesota Constitution". The statute says the combined rate applies until the second layer expires, and it expires on July 1, 2034. The combined state rate is therefore 6.875 percent.
Manufactured homes for residential use are taxed on 65 percent of the dealer's cost rather than on the full price. Local taxes, where they exist, come on top of the state rate (see the local tax section below).
Section 297A.67 lists the exemptions. The ones most shoppers meet are below, with the statute's own limits.
| Item | Treatment under 297A.67 | Limit stated in the statute |
|---|---|---|
| Food and food ingredients | Exempt | Candy, soft drinks, dietary supplements and prepared foods are not covered; alcoholic beverages and tobacco are not food for this purpose |
| Clothing | Exempt (human wearing apparel suitable for general use) | Not covered: clothing accessories or equipment (examples include jewelry, handbags, wallets, watches), sports or recreational equipment, protective equipment, fur clothing |
| Drugs and medical devices for human use | Exempt (the list includes prescription corrective eyeglasses) | Only the items listed in the subdivision |
Anything not exempt under the chapter is taxable at the full state rate. The statute's food definitions run to several paragraphs, so a borderline item (a granola bar versus candy, a meal-replacement drink versus a supplement) should be checked against section 297A.67 or with the Department of Revenue.
Minnesota taxes more than goods. Section 297A.61, subdivision 3, treats the following as taxable sales, among others:
| Item | What the statute says (summary) |
|---|---|
| Admissions and facilities | Admission to places of amusement, recreational areas and athletic events; health clubs, spas and athletic facilities |
| Lodging | Hotels, motels, resorts and campgrounds, except a rental of 30 days or more under an enforceable written agreement that cannot be ended without notice |
| Parking | Nonresidential parking, except parking at a meter |
| Laundry, dry cleaning, car washes, towing | Laundry and dry cleaning (not services at coin-operated facilities operated by the customer), vehicle washing and cleaning (including coin-operated), towing of motor vehicles |
| Cleaning and pest control | Building and residential cleaning and maintenance, pest control and exterminating |
| Security | Detective, security, burglar and fire alarm and armored car services |
| Lawn care and pets | Lawn care, garden and tree services, pet grooming, animal boarding (veterinary and horse boarding excluded) |
| Massage | Taxable unless provided by a licensed health care facility or professional or on a written referral from one |
| Software and digital products | Prewritten computer software and specified or other digital products |
| Utilities and telecom | Electricity, gas, water and steam; telecommunications, ancillary services and pay television |
This is a summary of a long statute, not a complete list. The clauses carry their own exceptions, so use section 297A.61 or the Department of Revenue before treating a specific service as taxable or exempt.
Local sales taxes in Minnesota do not apply everywhere. Under section 297A.99, a city or other political subdivision must first receive legislative authority and then voter approval at a general election before it can impose one. The statute says the rate "is as specified in the special law authorization and as imposed by the political subdivision", the tax applies to sales that are taxable under the chapter and occur within that subdivision, and a matching local use tax applies at the same rate.
The statute also says the full-local-rate rule does not apply in the same way to electricity, gas and other delivered heating fuels, or to motor vehicles, aircraft, watercraft and certain housing. We did not read a Department of Revenue rate table for this page, so we do not print local rates here: look up the combined rate for the exact address on the Department of Revenue's website before relying on a figure.
Section 297A.63 imposes a use tax on a person in Minnesota for "using, storing, distributing, or consuming" taxable goods or services bought for use in the state. It is charged at the rate set by section 297A.62. No use tax is due if the Minnesota sales tax was already paid on the purchase. In practice this matters for items bought from a seller that did not charge Minnesota tax, although we have not covered the filing mechanics because we could not read the Department of Revenue's instructions for individuals. Local use tax applies at the same rate as the local sales tax.
Chapter 168E imposes a separate 50-cent fee, not a sales tax, on retail deliveries. Under section 168E.03 the fee falls on the retailer for each transaction that equals or exceeds the "threshold amount", which section 168E.01 sets at $100 before sales tax and local taxes and excluding exempt items. The retailer may, but is not required to, collect it from the buyer. If the fee is collected it must be shown on the receipt as "road improvement and food delivery fee", and when separately stated it is excluded from the sales price for sales tax purposes. It is charged once per transaction however many shipments are needed. It must be refunded if the delivery is canceled, but it is not refunded if items are later returned.
Section 168E.05 exempts several kinds of delivery from the fee, including deliveries of food and food ingredients or prepared food, deliveries by food and beverage service establishments, deliveries of drugs, medical devices and baby products, and deliveries to a purchaser who is exempt from sales tax. So the fee mostly reaches non-food, non-drug goods.
We searched for a repeal and found only proposals from the 2025 session. The current Revisor text of section 168E.03, which we read on 2 November 2026, still contains the fee and lists no amendment after 2023, so we describe it as in force; check the Revisor site if this matters for a business decision.
These examples are our own arithmetic on the statutes above, rounded to the nearest cent. They are not official calculations, and they show the state rate only (6.875 percent), with no local tax.
| Cart (our illustration) | Exempt items | Taxable items | State sales tax | Delivery fee |
|---|---|---|---|---|
| Cart A: groceries $85, sneakers $120, candy $15, jewelry $40 | Groceries and sneakers, $205 | Candy and jewelry, $55 | $3.78 (6.875% of $55) | None: taxable total is under $100 |
| Cart B: sneakers $120, wallet $60, soft drinks $30, headphones $90 | Sneakers, $120 | Wallet, soft drinks and headphones, $180 | $12.38 (6.875% of $180) | $0.50 if the retailer charges it: taxable total is $100 or more |
Cart A shows how the clothing and food exemptions work, and how jewelry and candy still count. Cart B reaches the $100 threshold on its $180 of taxable items, while Cart A does not despite a $260 total, because exempt items are left out of the threshold test.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships
★ 4.8verified reviews · 3,758 reviews
Moving between states means a complex multi-state tax return. Taxhub matches you with a real CPA via video call — average cost $325. Rated 4.8★ by 3,700+ clients.
âš Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →Interested in reaching this audience? Advertise on CountryTaxCalc →