Minneapolis, MN Taxes 2025
Complete local tax guide and OBBBA calculator
On This Page
Minneapolis Tax Overview 2025
High state income tax. Strong economy with major corporations.
Local Income Tax
0%
City/county rate
Sales Tax
8.03%
State + local
Property Tax
1.13%
Effective rate
Median Home
$340,000
Home value
No Local Income Tax!
Minneapolis does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Minneapolis is located in Minnesota (5.35% - 9.85% state income tax)
💼 Minneapolis Local Income Tax
Minneapolis does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Minnesota) and federal income tax.
This is good news for Minneapolis residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Minneapolis
🛒 Minneapolis Sales Tax 2025
The combined sales tax rate in Minneapolis is 8.03%. This includes both the Minnesota sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Minneapolis. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Minnesota law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.02 | $54.02 |
| $100 | $8.03 | $108.03 |
| $500 | $40.15 | $540.15 |
| $1,000 | $80.30 | $1,080.30 |
🏠 Minneapolis Property Tax 2025
The average effective property tax rate in Minneapolis is 1.13%. Based on the median home value of $340,000, the typical homeowner pays approximately $3,842 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Minneapolis based on school district and other taxing authorities.
Estimated Annual Property Tax in Minneapolis
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $2,260 | $188 | ✓ Yes |
| $300,000 | $3,390 | $283 | ✓ Yes |
| $400,000 | $4,520 | $377 | ✓ Yes |
| $500,000 | $5,650 | $471 | ✓ Yes |
| $750,000 | $8,475 | $706 | ✓ Yes |
| $1,000,000 | $11,300 | $942 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Minneapolis Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Minneapolis Residents
High state income tax makes OBBBA federal deductions valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Minneapolis resident.
Available OBBBA Deductions:
Calculate Your Minneapolis Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Minneapolis resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Minneapolis?
The combined sales tax rate in Minneapolis is 8.03%. This includes both state and local sales taxes.
Does Minneapolis have a local income tax?
Minneapolis has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Minneapolis?
The average effective property tax rate in Minneapolis is 1.13%. On a home worth $340,000, you'd pay approximately $3,842 per year.
How do OBBBA deductions benefit Minneapolis residents?
High state income tax makes OBBBA federal deductions valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.