Minnesota Sales Tax: A Guide for Invoicing

MN state sales tax is 6.88%; most services are exempt. Add it automatically to every invoice.

State rate
6.88%
Services taxable
Generally no
Top metros
4
Sample local rate
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Minnesota state sales tax rate

The base state sales tax rate in Minnesota is 6.88%. State 6.875%; combined 7-8.875% in metros.

Average local tax adds approximately 1.16%, bringing the typical combined rate to about 8.04%.

Do services need sales tax in Minnesota?

Generally no — Minnesota taxes the sale of tangible personal property, not most services. Some specific services (typically utilities, accommodations, and certain repairs) are taxable. Verify your service category with the Minnesota Department of Revenue.

Common exemptions

  • Most professional services
  • Custom software development
  • Personal services
State rate
6.88%
Services
Generally exempt
Avg local add
1.16%

Top MN metros