State guide · MN
Minnesota sales tax and property tax
A high state rate on what is taxed and a long list of what is not, from winter coats to cough syrup, then a property tax that works through class rates and refunds.
Facts read on official Minnesota pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6.875%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Exempt
- Median property tax
- $3,501
- Effective property rate
- 1.02% · #17 of 51
Minnesota's 6.875% state rate is among the higher ones, but its base leaves out things most states tax: clothing suitable for everyday wear is exempt at any price, so a $320 winter coat costs $0 in tax, and over-the-counter drugs are exempt along with prescriptions. Groceries are exempt too, while candy, soft drinks, vitamins and prepared food are taxed. Cities and counties, many of them in the Twin Cities metro area, add general local taxes, and some add special local taxes on lodging, liquor, entertainment or restaurant food. Deliveries of $100 or more of taxable goods or clothing carry a 50-cent retail delivery fee. There is no sales tax holiday. On property, a home's market value is multiplied by a class rate to get its tax capacity: 1% on the first $500,000 for a homestead, 1.25% above, and homesteads escape the State General Tax. The median bill reported by the Census is $3,501, rank 18 of 51, on a $344,600 home, 1.02% of value. The Homestead Credit Refund, filed on Form M1PR, returns part of the tax to households under $142,490 of income.
Total to pay
$106.88
Sales tax $6.88 · 6.88% of the price
| Price before tax | $100.00 |
| State tax · 6.875% | $6.88 |
| Local tax · 0% | $0.00 |
| Total | $106.88 |
Rule applied: general state rate. Exact local rate for an address: Minnesota rate lookup. How this is calculated.
Sales tax in Minnesota
The clothing exemption is broad and simple: there is no price cap and no per-item test. A $320 parka, a suit or a pair of boots is sold without state or local tax. The exemption stops at accessories and gear: a $140 backpack or handbag is taxed, $9.63 at the state rate before any local tax, and so are jewelry, cosmetics, protective equipment and sports gear not suitable for general use. Medicine is handled just as generously, since nonprescription drugs are exempt like prescriptions, but vitamins and minerals count as dietary supplements and pay tax: $2.06 on a $30 bottle.
Local taxes come in two kinds. General local sales taxes are levied by a number of cities and counties, many of them in the Twin Cities metro area, and the Department of Revenue collects most of them alongside the state tax. Special local taxes target admissions, entertainment, food and beverages, liquor and lodging, and a few are collected by the city or county itself. The department's sales tax rate calculator returns the combined general rate for an address; enter the part above 6.875% in the calculator above. Liquor, cannabis, motor vehicles, short-term car rentals and manufactured homes have special state rates of their own.
The retail delivery fee is separate from the tax. A delivery to a Minnesota address that includes $100 or more of taxable items or clothing carries a flat $0.50, once per delivery, whatever the order's size. Purchases on which no Minnesota tax was charged owe use tax at the same state and local rates.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6.875% | yes | State general rate of 6.875%, plus any applicable local taxes, special local taxes and special taxes; the Department of Revenue administers many local sales taxes. |
| Groceries (food for home) | 0% | no | Food and food ingredients (groceries for human consumption) are exempt; candy, soft drinks, alcoholic beverages, prepared food, dietary supplements and vending machine food are taxable. |
| Clothing | 0% | no | Clothing suitable for general use is exempt with no price limit. Clothing accessories or equipment (backpacks, bags, cosmetics, jewelry, etc.), protective equipment and sports gear not suitable for general use are taxable. |
| Prescription drugs | 0% | no | |
| Retail delivery fee | see note | Flat $0.50 fee on retail deliveries in Minnesota when taxable goods and clothing in the transaction total $100 or more (Minn. Stat. ch. 168E). | |
| Liquor, cannabis, motor vehicle sales and short-term rentals, manufactured homes, solid waste services | see note | Subject to special tax rates in addition to (or instead of) the general rate; see the respective DOR guides. |
Local sales taxes
Levied by city and county local sales taxes (many in the Twin Cities metro area), plus special local taxes on admissions, entertainment, food and beverages, liquor and lodging; some special local taxes are administered by the city or county itself. Find the exact combined rate for an address with the official Minnesota lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
Minnesota has no sales tax holiday.
Worth knowing about Minnesota sales tax
- Clothing is fully exempt in Minnesota with no price cap, but accessories like backpacks, handbags and jewelry are taxable. source
- Over-the-counter drugs are exempt as well as prescription drugs; vitamins and minerals are taxable dietary supplements. source
- A 50-cent Retail Delivery Fee applies to deliveries of $100 or more of taxable items or clothing. source
- Restaurant meals, liquor, lodging and admissions can carry special local taxes on top of the 6.875% state rate and general local taxes. source
- The Department of Revenue provides a sales tax rate calculator by address because many cities and counties add their own local tax. source
Property tax in Minnesota
Minnesota does not tax a home's value directly. The county assessor sets market value, a class rate turns it into net tax capacity, and the local levies of counties, cities, towns, school districts and special districts are spread over that capacity. For taxes payable in 2026, a residential homestead in class 1a pays 1.00% on the first $500,000 of value and 1.25% above, while a rental house of one to three units pays 1.25% on all of it. A $620,000 home therefore has a tax capacity of $6,500 if the owner lives in it and $7,750 if it is rented out. Homesteads are also exempt from the State General Tax, which falls on commercial, industrial and seasonal recreational property. Blind or disabled owners get class 1b, at 0.45% on the first $50,000.
The homestead classification is not automatic: apply with the county assessor after buying. After the bill comes the refund. The regular Homestead Credit Refund requires 2025 household income under $142,490 and ownership and occupancy on January 2, 2026. The special refund ignores income and pays when net property tax rose more than 12%, and by at least $100, from 2025 to 2026. Both are claimed on Form M1PR with the Department of Revenue. A 2026 law raised 2025 homeowner refunds by nearly 15%, applied automatically to returns filed before July 15, 2026. Renters now claim the Renter's Credit on the income tax return instead.
For a rough figure, the statewide median ratio of 1.02% on a $344,600 home works out to about $3,501 a year, effective-rate rank 17 of 51. Seniors can also defer part of their tax through the state deferral program.
Property tax on a home in Minnesota
Typical bill per year
$3,501
| Per month | $292 |
| Median effective rate in Minnesota | 1.02% |
| Median bill paid | $3,501 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Minnesota |
|---|---|
| Median home value (owner-occupied) | $344,600 |
| Median real estate taxes paid | $3,501 |
| with a mortgage | $3,615 |
| without a mortgage | $3,299 |
| Effective rate (tax ÷ value) | 1.02% |
| Rank by effective rate (1 = highest) | 17 of 51 |
| Rank by median bill | 18 of 51 |
How the taxable value is set
Property tax is based on market value times a class rate ('net tax capacity'). For taxes payable in 2026, residential homesteads (class 1a) are taxed at 1.00% of the first $500,000 and 1.25% above; nonhomestead residential 1-3 units at 1.25%; commercial-industrial at 1.50% of the first $150,000 and 2.00% above. Homesteads are not subject to the State General Tax. Who levies the tax: counties, cities, towns, school districts and special taxing districts, plus a State General Tax on commercial-industrial and seasonal recreational property (not on homesteads)
Other property tax relief
- Homestead of blind or disabled persons (class 1b). Class rate of 0.45% on the first $50,000 of market value. source
- Property Tax Deferral for Senior Citizens. Program allowing qualifying seniors to defer part of their property tax. source
- Renter's Credit. Since 2024 renters claim the Renter's Credit on the income tax return instead of filing a Renter's Property Tax Refund (M1PR). source
Worth knowing about Minnesota property tax
- A 2026 law raised the 2025 Homestead Credit Refund for homeowners by nearly 15%; refunds filed before July 15, 2026 are adjusted automatically. source
- Homes pay a 1.00% class rate on the first $500,000 of value and 1.25% above, for taxes payable in 2026. source
- Homeowners whose net property tax jumps more than 12% (and at least $100) in a year can claim a special refund, whatever their income. source
- The regular Homestead Credit Refund requires 2025 household income under $142,490. source
- Since 2024 renters get the Renter's Credit on their income tax return rather than a separate property tax refund. source