Groceries Tax in Minnesota: What You Need to Know

Like the majority of US states, Minnesota levies a sales tax on the majority of products and services. However, the state takes a slightly different tack when it comes to groceries. In Minnesota, groceries are typically excluded from sales tax, so buying food from a grocery shop won’t cost you any extra money in taxes.

The majority of food items, including meat, poultry, dairy, fruits, vegetables, and baked goods, are exempt from the rule. There are a few exceptions, though. For instance, prepared items like hot dinners and sandwiches that are sold by grocery stores are subject to sales tax. Candy, soft drinks, and other non-essential food items are charged in a similar way.

In which state is the sales tax the highest?

Minnesota doesn’t actually have the highest sales tax rates in the country. California has the highest state-level sales tax rate, at 7.25%, according to the Tax Foundation. Following this are Tennessee, Indiana, Mississippi, Rhode Island, and all have rates of 7%.

Minnesota’s state sales tax rate, by contrast, is 6.875%. Local authorities may, however, levy additional sales taxes, which may differ by area. For instance, Minneapolis’ current sales tax rate is 8.025%.

What is the Woodbury, Minnesota sales tax? The Woodbury, Minnesota sales tax is 7.125% as of 2021. This includes a local tax rate of 0.25% as well as the state sales tax rate of 6.875%. Depending on where you are in Woodbury, the local tax rate could change. What Duluth, Minnesota’s sales tax rate is?

In Duluth, Minnesota, the current sales tax rate is 8.375%. This comprises a local tax rate of 0.5%, a state sales tax of 6.875%, and a 1% transit tax. The Duluth region’s public transportation is financed by the transit levy. Did Minnesota’s sales tax increase?

The Minnesota state sales tax rate has not changed recently as of 2021. Before making any purchases, it’s a good idea to confirm the applicable rates in your area because local governments occasionally change their sales tax rates.

In Minnesota, there are a few exceptions to the usual rule that groceries are exempt from sales tax. While Woodbury and Duluth have their own municipal sales tax rates, California now has the highest state-level sales tax rate in the US. Before making any purchases, it’s a good idea to confirm the local sales tax rates at the time.