What is the sales tax in Minneapolis? In Minneapolis, the sales tax for most items is 7.775%.
The 7.775% sales tax in Minneapolis is made up of state, county, city, and special taxes.
Minnesota state sales tax is 6.875%
Hennepin County sales tax is 0.15%
City of Minneapolis sales tax is 0.5%
Transit Improvement Tax is 0.25%
The Hennepin County sales tax has been in effect since January 2007 and is paying for Target Field, the Minnesota Twins baseball team's new stadium.
Even though the stadium has been built, Hennepin County is still paying for the stadium and will be collecting the tax for most of the next 30 years.
The Transit Improvement tax is collected in Hennepin, Ramsey, Anoka, Dakota and Washington County, and is used to pay for improving light rail, commuter rail, and express bus services.
Extra Taxes Collected in Minneapolis
On top of sales tax, Minneapolis also collects entertainment tax, restaurant tax, lodging tax, and tax on liquor sales.
Lodging Tax in Minneapolis is collected by hotels with over 50 rooms. Minneapolis lodging tax is 2.625%.
Liquor Tax is 2.5% for all liquor sales, on-site and off-site, from liquor stores, restaurants, bars, at sporting events, and at other venues.
Downtown Liquor Tax On-site liquor sales in bars, restaurants and at sporting events in Downtown Minneapolis are taxed an extra 3% on top of the 2.5% liquor tax.
Downtown Restaurant Tax is collected on food and non-liquor beverages sold at downtown Minneapolis restaurants, cafes, coffee shops, hot dog stands, and all places serving food.
Downtown Minneapolis restaurant tax is 3%.
Entertainment tax is charged on many forms of live entertainment across Minneapolis. Entertainment tax is collected on things like theater tickets, cover charges, carnival rides, arcade games, and jukeboxes. Entertainment tax is also collected on food, beverages and liquor served at events where there is live entertainment.
So, if a restaurant has live music, then entertainment tax will be collected on food and drink served during the live entertainment. Entertainment tax is 3%.