Minnesota Sales Tax by City 2026: Local Rates, Metro Taxes and Special Local Taxes
Minnesota Sales Tax by City 2026: Local Rates, Metro Taxes and Special Local Taxes
If you sell taxable goods or services in Minnesota, the tax you charge depends on two things: the 6.875 percent state rate and whatever local taxes apply at the address of the sale. The Minnesota sales tax rate you need is rarely the state figure alone. Minneapolis, St. Paul and Bloomington sit well above the state base, and a number of cities add special taxes on top of their general local rate.
This guide lists the combined general rates for the largest cities for the fourth quarter of 2026, explains the metro and special local taxes that sit behind those numbers, and shows you how to confirm the rate for a specific address. It is written for owners and bookkeepers who need an exact figure, not a rough estimate.
Minnesota has 87 counties, about 853 cities and about 1,780 townships. Local sales taxes follow the place where a sale happens, so two businesses a few miles apart can charge different totals on the same product. Treat the table below as a starting point, not the final answer for your invoice.
The Minnesota sales tax rate starts at 6.875 percent
The state sales tax rate is 6.875 percent and applies across Minnesota. Local taxes are added on top of that base, so the total you collect is the state rate plus any city, county and special local taxes that apply to the sale.
The Minnesota Department of Revenue publishes the Local Sales and Use Tax Rate Guide, which gives the combined rate for each city. It is the main reference for the figures in this article. You can find it through the Revenue home page at revenue.state.mn.us.
Combined city rates for the fourth quarter of 2026
The table shows the combined general rate Revenue published for October 1, 2026 to December 31, 2026. These figures leave out special local taxes, which are covered later in this guide.
| City | Combined general rate (Q4 2026) |
|---|---|
| Minneapolis | 9.025% |
| St. Paul | 9.875% |
| Bloomington | 9.025% |
| Duluth | 8.875% |
| Rochester | 8.125% |
| St. Cloud | 7.875% |
| Moorhead | 7.875% |
| Winona | 7.625% |
The spread is more than two points. On a $100 taxable sale, the difference between St. Paul and Winona is $2.25 before any special taxes. For a business that sells across several cities, that gap shows up on every invoice, so the city-level number matters.
Why one city can have more than one rate
Some cities can sit in more than one taxing area. Revenue's guide marks those cities with an asterisk. A city's boundary does not always match a single tax district, so the rate for a city name can differ depending on the exact location. Do not apply a city-wide figure to every sale without checking the address where the sale happens.
For a business with a storefront, the address of the store usually settles the question. For a business that delivers, ships or serves customers at job sites, record the location of each sale and check the rate for that location.
Metro counties: housing and transportation taxes
Seven counties carry two additional local taxes: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington. The metro housing tax is 0.25 percent and the metro transportation tax is 0.75 percent. For a sale in one of these counties, both taxes apply on top of the state rate and the city's general rate.
The table above shows general rates only. Before you set a rate for an address in one of the seven counties, confirm with the Department of Revenue how the metro taxes combine with the city figure. The Sales Tax Rate Calculator is the most direct check for a specific address.
Special local taxes you cannot skip
Special local taxes are separate from the general rate. Revenue administers them in 24 locations, listed in Fact Sheet 164S (revised July 2026). The list includes Rochester, St. Cloud, Mankato and St. Paul. Each special tax has its own base and scope, so the fact sheet is the place to confirm whether your business falls under one.
Special taxes often apply to particular kinds of sales, such as lodging, restaurant meals or entertainment, rather than to all retail sales. A retailer in a special-tax city may owe nothing extra, while a hotel or restaurant in the same city may owe several.
Minneapolis
Minneapolis special taxes are described in Fact Sheet 164M (February 2025). They include a 3% entertainment tax, a 3% lodging tax, and downtown liquor and restaurant taxes. The fact sheet also sets a 6.5% city cap on lodging. Restaurants, bars, venues and hotels in Minneapolis should read that fact sheet in full, because the general rate in the table does not show these charges.
St. Paul
St. Paul levies a 1.5% city sales tax. Confirm with the Department of Revenue whether that city tax is already reflected in the combined rate for your address before you rely on the table. St. Paul's lodging tax depends on the size of the property: 7% for hotels with 50 or more rooms and 3% for properties with fewer rooms.
Rochester, St. Cloud and Mankato
Rochester adds a 7% lodging tax. Rochester, St. Cloud and Mankato all appear in the Fact Sheet 164S list of special local tax locations. Check that sheet for the exact tax that applies to your category of sale, since the list identifies where special taxes are administered, not every rate that applies there.
Duluth tourism taxes
Duluth collects its own tourism taxes. As of 2026, they include an additional 2.25% on food and beverage sales, a 3.0% lodging excise, and an additional 2.5% on lodging for hotels with more than 30 rooms. Hotels, restaurants and bars in Duluth should confirm the current figures with the City of Duluth, since these are local taxes and can change.
How to confirm the rate for a specific address
Revenue's Sales Tax Rate Calculator returns a rate for a street address rather than a city name. That matters because the city table is a general reference, and an address check catches the cities that can sit in more than one taxing area.
- Start at the Department of Revenue home page at revenue.state.mn.us and open the Sales Tax Rate Calculator.
- Enter the exact address where the sale takes place, not your mailing address or the office where paperwork is kept.
- Record the rate, the address and the date you checked it.
- If the business is in a special-tax location, compare the result against Fact Sheet 164S, and Fact Sheet 164M for Minneapolis.
- Confirm any city tax that is not clearly shown with the city.
- Recheck the rate each quarter. The table in this article covers only October 1 to December 31, 2026.
Registering before you make taxable sales
Minnesota has no general statewide business license. Registering with the Department of Revenue for a Minnesota Tax ID and a sales and use tax account is a tax registration, not a license, but it is required before you make taxable sales. You can start the registration through the Department of Revenue's new business registration page at mndor.state.mn.us.
Forming a business entity is a separate step. Filing an entity with the Minnesota Secretary of State is a filing, not a license. For an LLC, Articles of Organization cost $155 online or in person and $135 by mail. The Annual Renewal costs $0 and is due December 31 each year. Confirm current filing details at the Secretary of State's site at sos.mn.gov.
Licensing in Minnesota is by trade or activity, not by a single state permit. Agencies such as the Department of Labor and Industry, the Minnesota Department of Health, the Minnesota Department of Agriculture, the Alcohol and Gambling Enforcement Division and the Office of Cannabis Management, along with the professional boards, issue licenses for their own fields. Use License Minnesota at mn.gov/elicense to browse requirements by topic, agency or A to Z index.
Local licensing follows the same pattern. Minneapolis and St. Paul license businesses by category, and neither issues a general business license. Other cities may also license by category and apply local zoning rules, so check with the city where your business operates.
Common sales tax mistakes to avoid
- Using the state rate alone. The 6.875 percent state rate is the base, not the total for most cities.
- Applying a city rate outside the city. A city name does not always match one taxing area, so check the address.
- Missing special taxes. Lodging, restaurant meals and entertainment are the most common places where special local taxes apply.
- Charging tax before registering. Complete the Department of Revenue registration before your first taxable sale.
- Relying on last quarter's rate. Confirm the current quarter's figure before each filing period.
Next steps
Start by listing every location where you make taxable sales. For each location, use the Sales Tax Rate Calculator to get the address-level rate, then check the special-tax fact sheets if the business involves lodging, meals or entertainment. If you sell in more than one city, build a simple rate sheet keyed to each address and review it every quarter. If you are not yet registered, complete the Department of Revenue registration before you make your first taxable sale.
Disclaimer: This article is informational content, not legal or tax advice. Tax rates, fact sheets and local ordinances change, and the figures here reflect the fourth quarter of 2026 as published by the Minnesota Department of Revenue. Confirm your obligations with the Department of Revenue and the relevant city. For complex situations, such as multi-city sales, lodging operations or several business entities, consult a qualified CPA or attorney.