How does sales tax work in Minnesota?

To figure the sales tax rate, combine the state general tax rate (6.875 percent) and all applicable local tax rates (local taxes, special local taxes, and special taxes). Apply the total rate to the taxable sales price.

What is subject to sales tax in Minnesota?

Goods that are subject to sales tax in Minnesota include physical property, like furniture, home appliances, and motor vehicles. Prescription and nonprescription medicine, groceries, gasoline, and clothing are all tax-exempt. Some services in Minnesota are subject to sales tax.

How do I pay sales tax in MN?

You have three options for filing and paying your Minnesota sales tax:

  1. File online – File online at the Minnesota Department of Revenue. You can remit your payment through their online system. …
  2. File by phone – Call 1-800- 570-3329 to file by touch-tone phone. …
  3. AutoFile – Let TaxJar file your sales tax for you.

How do I avoid sales tax in MN?

You do not need to charge Minnesota sales tax when you:

  1. Ship or deliver products to customers outside of Minnesota.
  2. Sell items that are exempt by law.
  3. Provide nontaxable services.
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Do I need to collect sales tax Minnesota?

If all your combined retail sales into Minnesota meet or exceed the Small Seller Exception, you must collect and remit Minnesota sales tax. You are responsible for collecting and remitting sales tax on taxable sales made through your website and other sources.

What food is taxed in MN?

Starting July 1, 2017, the only taxable food sold through vending machines is prepared food, soft drinks, candy, and dietary supplements. Previously, all food sold through vending machines was taxable.

Is there tax on haircuts in MN?

When a package sale includes taxable and nontaxable items or services for one price, the package is taxable. When the taxable items or services are 10 percent or less of the package price, the package is not taxable.

Barber Shop, Salon, and Spa Services.

Service or Product Barber shop and salon services
Taxable or Not Taxable Not taxable

How much is sales tax in MN?

To figure the sales tax rate, combine the state general tax rate (6.875 percent) and all applicable local tax rates (local taxes, special local taxes, and special taxes).

Is Mall of America tax free?

There’s No Tax on Clothing or Shoes at Mall of America

So it’s an added bonus that there is no tax on clothing or shoes at Mall of America or anywhere else in the North Star State. There is no tax on clothing or shoes at Mall of America.

What is exempt from MN sales tax?

While the Minnesota sales tax of 6.875% applies to most transactions, there are certain items that may be exempt from taxation.

Other tax-exempt items in Minnesota.

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Category Exemption Status
Clothing
General Clothing EXEMPT *
Food and Meals
Grocery Food EXEMPT

Why is there no tax on clothes in Minnesota?

Many states first implemented sales taxes during the Great Depression, which was taking a toll on public budgets. But Minnesota held out largely because the Farmer-Labor governor at the time, Floyd B. Olson, objected to the tax as an unfair burden on the poor.

Are groceries taxed in MN?

Taxable food includes prepared food as defined in Minnesota Statutes, section 297A. … 61, subdivision 3, paragraph (d), are exempt from tax. Alcoholic beverages and tobacco are not food and food ingredients and are therefore subject to tax unless another exemption applies.

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