Menu

House Research Navigation

Print Twitter RSS Email

Legislature > House of Representatives > House Research > Data & Tools > MN Gov't in Brief

Sales Tax

The sales tax is an ad valorem tax imposed on the retail (final) sales of most goods and some services.

General sales and use tax rates for fiscal year 2016

  • General sales: 6.875%
  • Motor vehicle sales: 6.5%
  • Liquor, wine, and beer sales: 6.875% (A 2.5% gross receipts tax is also imposed on these sales)
  • Motor vehicle rental: 21.075%

Major exemptions

  • Clothing
  • Most food products
  • Prescription drugs and some other medicines
  • Most business and personal services
  • Gasoline (subject to the motor vehicle fuels tax)
  • Farm and logging machinery repair parts
  • Capital equipment for manufacturing industries
  • Industrial special tooling

Sales Tax Revenues

Sales tax revenues were $6,652 million in fiscal year 2017.

Graph showing sales tax revenues for ten years

Income, Sales, and Property Taxes

Graph showing income, sales, and property taxes

Jump to top

January 2017

House Research Department  ♦  600 State Office Building, Saint Paul, MN  55155  ♦  House.Research@house.mn  ♦  651-296-6753