1. What is Minnesota Sales Tax?

Minnesota has a state sales tax rate of 6.875% as of 2023. Some cities and counties may add local taxes, but this calculator uses the base state rate.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Price \) — The pre-tax amount in USD
• \( 0.06875 \) — Minnesota's 6.875% sales tax rate

Explanation: The calculation converts the percentage to decimal form (6.875% = 0.06875) and multiplies by the price.

3. Importance of Sales Tax Calculation

Details: Accurate sales tax calculation helps with budgeting, financial planning, and ensuring proper tax collection for businesses.

4. Using the Calculator

Tips: Enter the pre-tax price in USD. The calculator will show both the tax amount and the total (price + tax).

5. Frequently Asked Questions (FAQ)

Q1: Does this include local taxes?
A: No, this calculates only the base Minnesota state tax of 6.875%. Some areas have additional local taxes.

Q2: What items are taxable in Minnesota?
A: Most goods are taxable, with exceptions for clothing, prescription drugs, and some food items.

Q3: How often does Minnesota change its sales tax rate?
A: The rate changes infrequently. The current 6.875% rate has been in effect since 2019.

Q4: Are services taxable in Minnesota?
A: Some services are taxable, including telecommunications, lodging, and some entertainment services.

Q5: How does Minnesota sales tax compare to other states?
A: Minnesota's rate is slightly higher than the national average but lower than some neighboring states.