The short answer is no, there is no city tax in Minneapolis. This does not, however, imply that you are excluded from paying taxes at all. Sales tax, property tax, and income tax are just a few of the state and local taxes that apply to Minneapolis. In Minneapolis, the current sales tax rate is 7.775%, of which 6.875% goes to the state of Minnesota and 0.5% to Hennepin County. The remaining 0.4% will go toward the sales tax for transit-related improvements. How Do You Calculate Sales Tax?
There are a few steps you may take whether you are a business owner or simply want to know how much sales tax you will be paying on a purchase. First, find out how much sales tax is charged where you are. As previously established, the sales tax rate in Minneapolis is 7.775%. The total price of your purchase (including any applicable taxes or charges) must then be multiplied by the sales tax rate. For instance, the sales tax would be $7.78 (100 x 0.07775) if you were buying a $100 item.
In Minnesota, the majority of tangible products and some services are subject to sales tax. For several types of things, there exist exceptions and unique regulations. For instance, whereas prepared food, housing, and motor vehicles all have their own unique tax rates, clothing purchases are typically free from sales tax. There are additionally exclusions for some categories of organizations, including charities and governmental bodies.
Despite the absence of a municipal tax in Minneapolis, citizens and companies are still subject to state and local taxes, including the sales tax. You must know the local sales tax rate and multiply it by the entire cost of your purchase to determine your sales tax. In Minnesota, keep in mind that most tangible things and some services are subject to sales tax, with some exceptions and unique guidelines for specific product categories.