Clothing exemption
Minnesota is one of five states (with PA, NJ, VT, MA partial) that exempts most clothing from sales tax. Exempt: shirts, pants, dresses, shoes, socks. Taxable: clothing accessories (jewelry, handbags), protective/athletic equipment, and clothing intended for use in a trade.
Local rates & transit add-ons
Minnesota allows local option taxes (city/county sales taxes) plus regional transit taxes. Hennepin County transit = 0.5%, Ramsey County = 0.5%, plus city sales tax (Minneapolis 0.5%, St. Paul 0.5%). Minneapolis adds a 3% lodging and 3% downtown liquor tax on top.
Prepared food vs grocery
'Prepared food' (taxable) = sold with utensils, heated by seller, or two+ ingredients mixed by seller. 'Grocery food' (exempt) = raw ingredients in their original packaging. A rotisserie chicken is prepared (taxable); a raw chicken is grocery (exempt).
FAQ
Is clothing taxed in Minnesota?
No — most clothing is exempt from MN state sales tax. Exceptions: accessories, protective equipment, athletic gear (other than basic shoes), and fur clothing >$1,000.
What's Minnesota's economic nexus?
$100,000 in MN sales OR 200 separate transactions in the prior 12 months. Marketplace facilitators handle their portion.
Does MN tax services?
Selectively. Taxable services include lodging, telecommunications, parking, lawn care, building cleaning, and most personal services. Professional services (legal, accounting) are exempt.
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Last reviewed
June 2026. We re-check every figure on the platform on a rolling quarterly cycle.
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