Minnesota State Sales Tax Overview
The Minnesota state sales tax rate is 6.88%. The average MN sales tax after local surtaxes is 7.2%. Minnesota has a lower state sales tax than 67.3% of states.
Taxable Items in Minnesota
Any food or drink that is sold in a heated state or is heated by the seller is taxable. Candy and candy products combined with certain ingredients are also subject to sales tax.
Tax-exempt Items in Minnesota
Baby clothing and digital goods are not taxable in Minnesota. Menstrual products like tampons are exempt from sales tax. Clothing (excluding specific categories) and food are also exempt from sales tax in Minnesota.
Minnesota Use Tax
Use tax may apply to online or out-of-state purchases if sales tax was not collected at the time of sale. When buying taxable goods in Minnesota, sales tax is collected at the point of purchase. Use tax applies if sales tax was not paid initially.
Iowa State Sales Tax Overview
The Iowa state sales tax rate is 6%. Counties and cities can charge up to 1% additional local sales tax, for a maximum 7% combined rate. All car sales in Iowa are subject to state and local sales tax.