1. What is Minnesota Sales Tax?

Minnesota's state sales tax rate for 2025 is 6.875%. Some local jurisdictions may add additional 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 US dollars
• \( 0.06875 \) — Minnesota's 6.875% sales tax rate

3. Importance of Sales Tax Calculation

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

4. Using the Calculator

Tips: Enter the pre-tax price in USD. The calculator will compute the tax amount and total including tax.

5. Frequently Asked Questions (FAQ)

Q1: Are all items taxed at 6.875% in Minnesota?
A: No, some items like clothing, food, and prescription drugs may be exempt or taxed at different rates.

Q2: Does this include local taxes?
A: No, this calculator only uses the state rate. Some cities/counties add local taxes (typically 0.15-2%).

Q3: When did this rate take effect?
A: Minnesota's state sales tax rate has been 6.875% since 2019 and remains unchanged for 2025.

Q4: How does Minnesota's rate compare nationally?
A: It's slightly above the national average (state rates typically range from 2.9% to 7.25%).

Q5: Are services taxed in Minnesota?
A: Most services are not taxed, though some like lodging, vehicle repairs, and telecommunications services are taxable.