The Minnesota (MN) state sales tax rate is currently 6.875%, ranking 6th-highest in the U.S. Depending on local municipalities, the total tax rate can be as high as 8.875%. The average local rate is 0.55%. The average combined tax rate is 7.295%, ranking 18th in the US.

Local taxes apply to both intra-state and inter-state transactions.

Use tax is the counterpart of sales tax, with the same exemptions and rate - 6.875% plus any local tax that applies. Use tax is due if a consumer buys a taxable item for use in Minnesota and the seller does not collect sales tax on the purchase. Each calendar year, individuals can buy up to $770 worth of taxable items for personal use without paying use tax.

In Minnesota, food and food ingredients are exempt from sales tax. All drugs for human use, including prescribed drugs and over-the-counter drugs are exempt from sales tax.

Minnesota participates in the Streamlined Sales Tax Project (SSTP).