Local sales and use tax

In addition to the 6.875% Minnesota sales and use tax, retail sales and taxable services in Hennepin County may be subject to local sales and use taxes such as:

  • 0.15% Hennepin County tax (ballpark)
  • 0.25% Transit Improvement tax (Anoka, Dakota, Hennepin, Ramsey and Washington counties)

The Minnesota Department of Revenue administers and collects these taxes.

Note that certain cities within Hennepin County (Minneapolis and Bloomington, for example) also have local sales taxes either administered by the Minnesota Department of Revenue or by the city itself. Contact the applicable city(s) with questions.

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What is a local use tax?

A local use tax is similar to a sales tax and is collected on purchases that are taxable but were not taxed at the local sales tax rate (for example, out-of-state purchases). In Hennepin County, in addition to a local sales tax on certain purchases made within the county, a local use tax is applicable to taxable purchases made outside Hennepin County by county residents and businesses.

When would I owe local use tax?

If within a calendar year you buy taxable goods or services outside Hennepin County for personal use that total more than $770, the purchases are subject to local use tax.

If your business buys, leases or rents taxable goods or services used in your business, they are subject to local use tax either with the purchase or by April 15 of the following year. Local use tax may also be due when your business brings items into the county or takes items out of inventory into a taxable us.

To determine if local use taxes are owed, refer to the following Minnesota Department of Revenue sales tax fact sheets:

  • #146, Use Tax for Businesses
  • #156, Use Tax for Individuals
  • #164, Local Sales and Use Taxes
  • #164S, Special Local Taxes
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