If you are visiting St. Paul, Minnesota, it can help your budget to know the city's sales tax. In St. Paul, the combined sales tax for most items is 7.625 percent.
The Breakdown of St. Paul's Sales Tax
The 7.63 percent sales tax in St. Paul is made up of state, city, and special taxes. Here's the breakdown:
Minnesota state sales tax is 6.875 percent.
The city of St. Paul sales tax is 0.5 percent.
The special tax, a transit improvement tax, is 0.25 percent.
The transit improvement tax is collected in Hennepin, Ramsey, Anoka, Dakota and Washington counties, and is used to pay for improving light rail, commuter rail, and express bus services.
The city of St. Paul's tax is called the STAR program, which stands for Sales Tax Revitalization. This pays for a remodeling of the city's civic center complex, plus other capital projects throughout downtown and the city's neighborhoods. Learn more about the STAR program online.
Dakota County itself, where St. Paul is located, has no additional sales tax.
On top of sales tax, St. Paul also collects an entertainment tax, restaurant tax, lodging tax and tax on liquor sales. The lodging and restaurant tax are particularly relevant to tourists.
The lodging tax in St. Paul is collected by hotels, so you will likely see this on your statement when you check out. St. Paul's lodging tax is 3 percent for hotels with less than 50 rooms, and 6 percent for hotels with 50 or more rooms. Learn more about the hotel/motel tax on the Minnesota Department of Revenue's website.
The liquor tax is a statewide 2.5 percent tax on all liquor sales, on-site and off-site, from liquor stores, restaurants, bars, at sporting events and at other venues.
Sales Tax Exemptions
While most purchases are subject to sales tax, not all are. You can apply for a Certificate of Exemption, which may exclude your purchase.
For example, items shipped to outside of St. Paul also is not subject to the St. Paul sales tax. Federal government agencies are also exempt from local and state sales tax. There are other situations that also may apply. Check the state's tax information to see if your purchase may be free of sales tax.
More Info on St. Paul Sales Tax
- Looking for more info on sales tax? Check out this online sales tax calculator to help you calculate the specific tax for different purchases in St. Paul. It can even break down the sales tax by the three different categories.
- Another helpful website to learn more about Minnesota's sales tax is on the Department of Revenue's website.
- The St. Paul website is a great website to learn more about St. Paul's specific taxes and what the money goes toward.
- Dive extra deep and expand your knowledge by reading the online Minnesota Sales and Use Tax Instruction Booklet.