Minnesota sales tax changes

Tracking state and local sales tax rate and rule changes in Minnesota


Minnesota sales tax changes effective July 1, 2019

A new 0.5 percent transit sales and use tax takes effect in Isanti County, Minnesota effective July 1, 2019. The transit sales tax applies to retail sales made into Isanti County, while the transit use tax applies to taxable items used in the County if the local sales tax wasn't collected at the point of sale.

For more information, see Fact Sheet 164, Local Sales and Use Taxes

Minnesota Sales Tax Rate Guide

Sales tax guide for Minnesota businesses

Our free, online guide covers all aspects of managing Minnesota sales tax compliance. Topics include:

  • Business registration
  • Collecting sales tax
  • Filing sales tax returns
  • State nexus obligations
  • And more!

Visit the guide

Minnesota sales tax changes archive

The following county sales and use tax rate changes are scheduled to take effect in Minnesota on April 1, 2019.

  • Redwood County will have a 0.5% Transit Sales and Use Tax
  • Waseca County will have a 0.5% Transit Sales and Use Tax

The following county sales and use tax rate changes are scheduled to take effect in Minnesota on January 1, 2019.

  • Dodge County has a 0.5% Transit Sales and Use Tax
  • Goodhue County has a 0.5% Transit Sales and Use Tax and $20 per vehicle Excise Tax
  • Sherburne County has a 0.5% Transit Sales and Use Tax

Effective September 30, 2018, Worthington will end its 0.5% Sales and Use Tax.


Numerous local sales and use tax rate changes are scheduled to take effect in Minnesota come Jan. 1, 2018.

New city sales and use taxes

  • East Grand Forks: 1%
  • Fergus Falls: 0.5%
  • Walker: 1.5%

New county sales and use taxes

The following counties are all imposing new transit sales and use taxes (to raise revenue for transit):

  • Mower County: 0.5%
  • Morrison County: 0.5%
  • Nicollet County: 0.5%
  • Polk County: 0.25%
  • Stearns County: 0.25%

New special district sales and use taxes

  • Garrison, Kathio, West Mille Lacs (GKWMLL) Sanitary District: 1%

The sales and use tax rate in Kandiyohi County, Minnesota, will increase on April 1, 2018. The county is imposing a 0.5 percent transit sales and use tax to generate revenue for transportation projects. This will be in addition to the 6.875 percent state sales tax rate, for a combined rate of 7.375 percent.

The new local transit sales and use tax does not apply to the following:

  • Lease payments that include periods before April 1, 2018 (it does apply to payments for periods that begin on or after that date)
  • Taxable purchases ordered before April 1, so long as the transfer of title or possession takes place prior to April 1 (the tax applies if transfer of title or possession takes place after April 1)
  • The purchase of taxable services, including utility services, if the billing period includes charges for services furnished before and after April 1 (the tax does apply if the billing period starts on or after April 1)
  • The purchase of admission tickets if they’re paid for prior to April 1, even if the event is held on or after April 1
  • The purchase of construction materials used to complete a lump sum or fixed price construction contract that was signed and is enforceable before April 1, so long as the contract does not provide for an allocation of future taxes, the materials are used exclusively in performing the contract, and the materials are delivered before Oct. 1, 2018

In addition to the local transit sales and use tax, Kandiyohi County is imposing a $20 vehicle excise tax. The excise tax must be collected by vehicle retailers upon the sale of a new or used motor vehicle that will be registered for road use. Additional information is available from the Minnesota Department of Revenue.


Many local sales and use tax rate changes took effect in Minnesota on Oct. 1, 2017.

City changes

The following cities imposed a new 0.5% sales and use tax:

  • Fairmont
  • Moose Lake
  • New London
  • Spicer

Proctor increased the local sales and use tax from 0.5 to 1%.

County changes

The following counties imposed a new transit sales and use tax:

  • Anoka County: 0.25%
  • Carver County: 0.5%
  • Dakota County: 0.25%
  • Hennepin County: 0.5%
  • Ramsey County: 0.5%
  • Washington County: 0.25%
  • Wright County: 0.5%

Clay County imposed a new general sales and use tax of 0.5%.

Other changes

The Minneapolis lodging tax rate dropped from 2.625% to 2.125% on Oct. 1, 2017.

Also on that date, the Transit Improvement Area Tax is discontinued and Anoka, Dakota, Hennepin, Ramsey, and Washington Counties each have their own $20 vehicle excise tax. The vehicle excise tax is collected by “any person in the business of selling new or used motor vehicles at retail.” The Minnesota Department of Revenue administers this tax for these cities.

Baxter, Brainerd, Clearwater, Hutchinson, Mankato, New Ulm, Rochester, and Worthington also impose a vehicle excise tax of $20. The cities administer the tax themselves.

Local sales tax doesn’t apply to the sale of motor vehicles in Minnesota. Additional information is available from the Minnesota Department of Revenue.


The local sales and use tax rate in Lake County, Minnesota, is set to increase by 0.5% on April 1, 2017 to raise revenue for transit. The new combined rate will be 7.375%. Additional information.


There will be several local sales tax changes in Minnesota, effective January 1, 2016.

City changes

  • Rochester: increase sales and use tax from 0.5% to 0.75%

County changes

Prepaid wireless and calling card fees

In addition, the E911 fee collected by prepaid wireless providers will increase from 78 cents to 95 cents on January 1, 2016. And the Telecommunications Access Minnesota (TAM) fee will drop from 8 cents to 7 cents. More information is available through the Minnesota Department of Revenue.


A couple of local sales tax rate changes are scheduled to take effect in Minnesota on October 1, 2015.

Lyon County will impose a new 0.5% transit sales and use tax to fund specified transit projects. All retailers who are registered for Minnesota sales tax and do business in Lyon County must collect and remit the tax.

A new 0.5% transit sales and use tax will also take effect in Scott County. In addition, the county will impose a $20 Transit vehicle excise tax to all sales of motor vehicles registered for road use. See the Minnesota Department of Revenue Sales Tax Fact Sheet 164 for additional information.


There will be a new 0.5% transit sales and use tax in Hubbard County, Minnesota, beginning July 1, 2015. Revenue generated by the tax will fund projects identified in the Hubbard County Five Year CSAH & County Road Construction Program.

Please see the Minnesota Department of Revenue rate change notice for additional details.


The Minnesota Department of Revenue has announced several local sales tax rate changes, effective April 1, 2015.

The City of Proctor will impose a 1% Food and Beverage tax, administered by the Minnesota Department of Revenue. It will apply to all sales of taxable food and beverage by a restaurant or place of refreshment in the City of Proctor. It will not apply to “off-sale alcoholic beverage sales.”

Carlton County will impose a 0.5% transit sales and use tax on all retail sales made within the county. In addition, it will impose a $20 vehicle excise tax on sales of motor vehicles registered for road use. The taxes will be administered by the Minnesota Department of Revenue.

St. Louis County will impose a 0.5% transit sales and use tax on all retail sales made within the county. In addition, it will impose a $20 vehicle excise tax on sales of motor vehicles registered for road use. The taxes will be administered by the Minnesota Department of Revenue.

Steele County will impose a 0.5% transit sales and use tax on all retail sales made within the county, except on sales of motor vehicles registered for road use. It will be administered by the Minnesota Department of Revenue.

Use tax is owed when sales tax wasn’t paid on taxable transactions at the time of sale.


Updated 11.5.2015

The Minnesota Department of Revenue (DOR) has announced sales tax rate changes, effective January 1, 2015.

Fillmore County will impose a 0.5% transit sales and use tax on all taxable retail sales except vehicle sales. Revenue generated by the new tax will fun road and bridge improvements identified in the Fillmore County Capital Improvement Plan. The combined sales and use tax rate for Fillmore County will be 7.375%.

Todd County will impose a 0.5% transit sales and use tax. It will apply to all taxable retail sales with the exception of vehicle sales. Revenue generated by the tax will fund road improvement projects identified by the Todd County Public Works 5 Year Highway Improvement Plan. The combined sales and use tax rate for Todd County will be 7.375%.

Both new transit sales and use taxes will be administered by the Minnesota Department of Revenue.

Also new in January 2015 is a new exemption threshold for nonprofits.


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