Minneapolis sales tax guide
Shopping in Minneapolis means paying one of the higher combined sales tax rates in Minnesota: 9.025%, against a statewide average combined rate of 8.04%. Among the 30 major US cities we track, Minneapolis ranks 6 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Minneapolis rate is built
Rose by a full point in October 2023 for Twin Cities metro transport and housing taxes, on top of Hennepin County and city layers. Minnesota fully exempts groceries and most clothing — one of only a handful of full clothing-exemption states.
No single government sets the 9.025% figure. The state of Minnesota sets the base rate of 6.875%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 9.025% | Total |
|---|---|---|
| $25 purchase | $2.26 | $27.26 |
| $100 purchase | $9.03 | $109.03 |
| $500 purchase | $45.13 | $545.13 |
| $1,000 purchase | $90.25 | $1,090.25 |
| $10,000 purchase | $902.5 | $10,902.5 |
| $35,000 car (where vehicles are taxed at sale) | $3,158.75 | $38,158.75 |
Groceries: Groceries are generally exempt from the state sales tax; local rules can differ. Most clothing is also exempt from Minnesota sales tax. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Minneapolis vs other major US cities
Minneapolis is the Minnesota city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Minneapolis (this guide) | 9.025% | $90.25 |
| Seattle — among the highest | 10.35% | $103.5 |
| Chicago — among the highest | 10.25% | $102.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in Minneapolis
On planned purchases the rate is a line item, not a rounding error: $902.5 on $10,000, which is $98.5 more than the same purchase at the Minnesota average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Minneapolis
If your business delivers into Minneapolis, the rate your customer pays is generally the combined rate at their address. Once your Minnesota sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Minneapolis sales tax page, and the statewide picture is in the Minnesota tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Minneapolis sales tax FAQs
What is the sales tax rate in Minneapolis?
The combined sales tax rate in Minneapolis is approximately 9.025%, made up of the Minnesota state rate plus county, city and district taxes. Rose by a full point in October 2023 for Twin Cities metro transport and housing taxes, on top of Hennepin County and city layers. Minnesota fully exempts groceries and most clothing — one of only a handful of full clothing-exemption states.
How much tax do I pay on a $100 purchase in Minneapolis?
At 9.025%, a $100 taxable purchase in Minneapolis carries about $9.03 in sales tax, for a total of $109.03. On $1,000 the tax is $90.25; on $10,000 it is $902.5.
Why is the Minneapolis rate different from the rest of Minnesota?
Sales tax is stacked: the state sets a base rate and local governments add their own. Minneapolis adds local layers that bring the combined rate to 9.025%, compared with a statewide average combined rate of about 8.04% — a gap of 0.99 points.
How does Minneapolis compare with other US cities?
Minneapolis ranks 6 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Minneapolis is 2.42 points higher.
Are groceries taxed in Minneapolis?
Groceries are generally exempt from the state sales tax; local rules can differ. Most clothing is also exempt from Minnesota sales tax.
Where can I verify the exact rate for a Minneapolis address?
The 9.025% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Minnesota Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Minnesota Department of Revenue.