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How to Calculate Sales Tax in Minnesota

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    • 1). Find out the price of the item that you want to purchase and make sure it is not a tax-exempt item like unprepared food, clothing or prescription medication.

    • 2). Calculate the appropriate sales tax rate. Minnesota has a 6.875 percent general sales tax rate, but there are lots of local taxes that you may need to take into consideration. Check to see if you have to pay a transportation improvement, entertainment, lodging or other local tax. If so, add this to the sales tax percent. For instance, if you are paying for a hotel in Minneapolis, you will pay 6.875 percent in general sales taxes, three percent in lodging taxes, .25 percent in transportation improvement taxes and .15 percent to help finance the new Twins field, bringing the total sales tax percentage to 10.275 percent.

    • 3). Multiply your subtotal by one and the sales tax percentage in order to arrive at your total. For instance, if your hotel in Minneapolis costs $500, you would multiply $500 by 1.10275 to come to a total of $551.38 on your hotel bill.

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