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 sales tax formula:

Where:

• \( Original\ Price \) — The pre-tax price of the item
• \( 0.06875 \) — Minnesota state sales tax rate (6.875%)

Explanation: The formula calculates the tax amount and adds it to the original price to get the total cost.

3. Importance of Sales Tax Calculation

Details: Knowing the exact tax amount helps with budgeting, financial planning, and understanding the true cost of purchases.

4. Using the Calculator

Tips: Enter the original price before tax in USD. The calculator will show both the tax amount and total after-tax price.

5. Frequently Asked Questions (FAQ)

Q1: Is this the exact tax rate everywhere in Minnesota?
A: No, this is the base state rate. Some cities/counties add local taxes (e.g., Minneapolis has a 0.5% local tax).

Q2: What items are exempt from Minnesota sales tax?
A: Most groceries, clothing, prescription drugs, and some services are exempt.

Q3: When did Minnesota's tax rate change last?
A: The rate decreased from 6.875% to 6.5% in 2019, then returned to 6.875% in 2021.

Q4: How does Minnesota's rate compare to other states?
A: Minnesota's rate is higher than average (national average is about 5-6%).

Q5: Are online purchases taxed at this rate?
A: Yes, since 2018 Minnesota requires online retailers to collect sales tax.