Credit card processing and merchant services in Minneapolis, MN
Minneapolis adds special taxes on downtown restaurant meals, on-sale liquor and entertainment on top of a 9.025% general rate. Your POS needs each one, and your surcharge needs Minnesota's notices.
A downtown Minneapolis restaurant with a bar and live music needs more tax settings than most businesses. Start with the general rate: 9.025% on most taxable sales in the city, which is Minnesota's 6.875% plus city, Hennepin County and metro-area taxes, according to the Department of Revenue's rate guide for the fourth quarter of 2026.
Inside the downtown taxing area, restaurants, caterers and places of refreshment add a 3% downtown restaurant tax on food and beverages, and on-sale liquor carries a 3% downtown liquor tax. Anywhere in the city, admission to entertainment carries the 3% Minneapolis entertainment tax, and so can food and drinks sold in public places during live entertainment. A POS with one tax rate will get most of those sales wrong.
Card rules come from Minnesota's statute. You can surcharge credit cards up to 5%, with an oral notice and a posted sign in person, a notice at online checkout and an oral notice by phone, but Visa's 3% and Mastercard's 4% caps are the limits that bind. Under the state's price transparency law, a surcharge customers can avoid by paying cash can stay out of your advertised prices, while a mandatory fee can't.
Food service is a big business here. The Census Bureau counted 430,324 people in Minneapolis in its July 2025 estimate, and the city's accommodation and food services businesses took in $2.1 billion in 2022, according to the Economic Census.
Clearo prices restaurant and venue accounts on interchange-plus, month to month, with one rep who knows your account. Send a statement for a free statement review to see where your rate lands, and see our Minnesota page for statewide rules.
Rules that matter in Minneapolis
Downtown restaurant and liquor taxes
In the downtown Minneapolis taxing area, a 3% restaurant tax applies to food and beverages sold by restaurants, caterers and places of refreshment, and a 3% liquor tax applies to alcoholic beverages sold at on-sale liquor establishments. Both are in addition to the general sales tax. The Department of Revenue's fact sheet describes the boundary of the downtown taxing area.
Source: Minnesota Department of Revenue, Fact Sheet 164M, Minneapolis special local taxes (PDF)
Minneapolis entertainment tax
The 3% entertainment tax applies citywide to admission fees to athletic events and other places where entertainment is provided. When food and drinks are sold in public places during live entertainment, they can be subject to the entertainment tax too, even without an admission charge.
Source: Minnesota Department of Revenue, Fact Sheet 164M, Minneapolis special local taxes (PDF)
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Common questions
What is the sales tax rate in Minneapolis?
9.025% on most taxable sales, according to the Minnesota Department of Revenue's rate guide effective October 1, 2026. Special local taxes come on top: 3% on food and beverages at downtown restaurants, 3% on downtown on-sale liquor, 3% on entertainment citywide and 3% on lodging.
Do Minneapolis restaurants outside downtown pay the 3% restaurant tax?
No. The 3% downtown restaurant tax and 3% downtown liquor tax apply inside the downtown Minneapolis taxing area, which the Department of Revenue's fact sheet describes. The 3% entertainment tax is different: it applies citywide wherever entertainment is provided.
Can a Minneapolis venue surcharge credit cards?
Yes, within Minnesota's statute and the card network caps. Tell customers orally and with a posted sign in person, post a notice at online checkout, and say it on phone orders. The state allows up to 5%, but Visa's 3% and Mastercard's 4% caps are lower, and debit cards can't be surcharged.
Do Minneapolis ticket sellers have to show fees upfront?
Yes. The FTC's fee rule, in effect since May 12, 2025, covers live-event tickets and requires the total price, including mandatory fees, to be shown upfront. Minnesota's price transparency law also requires advertised prices to include mandatory fees. Admissions in the city also carry the 3% entertainment tax.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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