Different Sales Tax Rate for Different Counties | Southern Minnesota

Q:  My business does sales all over the state.  Do I have to collect sales tax for all those locations or can I just use Faribault’s rate because it is only 7.375%?

A:  Sorry, but if you are working in different locations, then you have to pay the sales tax for those locations.  The easiest way to know what the tax rate is that you need to charge is by going to www.taxes.state.mn.us.  Then under Businesses, select Sales & Use Tax and then select Calculate Sales & Use Tax Rates.  You have to enter the full address for it to determine what the tax rate is.  But it will list out what all the different tax rates are.

For example, if you do business in Medford, you would need to collect:

          MN State = 6.875%

+Steele County =    0.5%

+Medford City =    0.5%

Tax Totaling = 7.875%

Then when you report your sales tax to Minnesota, you need to separate your sales by each area of tax.  For more help, please contact our office directly.