Credit card processing and merchant services in Rochester, MN
Rochester's general sales tax rate is 8.125% in Minnesota's October 2026 rate guide, 1.75 points below St. Paul's, so a Rochester store can't borrow a Twin Cities store's tax settings.
A Rochester register should be set to 8.125% for general taxable sales. That's the rate in the Minnesota Department of Revenue's local rate guide effective October 1, 2026: the 6.875% state rate plus 1.25 points of local tax. The same guide has Minneapolis at 9.025% and St. Paul at 9.875%, so of the three cities, Rochester's rate is the lowest.
If you also have a Twin Cities store, don't clone its settings. A register carrying St. Paul's 9.875% into Rochester charges 1.75 points too much on every taxable sale, which comes to $525 a month on $30,000 of sales, all of it tax your customers didn't owe. The department's sales tax rate calculator gives the general rate for any Minnesota address, so check every new location in it before opening day. Our St. Paul page covers that city.
Part of Rochester's local rate is a half-percent city sales tax that voters renewed on November 7, 2023. The city's local sales tax projects page describes the plan it pays for: about $205 million for street repair, flood control, housing, workforce development, and recreation and sports. The guide's general rate leaves out special local taxes, such as lodging, food and beverage or admissions taxes, so a hotel, restaurant or venue should check those separately.
Minnesota has its own surcharge statute. Minn. Stat. 325G.051 allows up to 5% on credit cards, with notice given out loud and on a posted sign in person, at checkout online, and out loud on the phone. Visa's 3% and Mastercard's 4% caps are lower, so those are the limits that actually apply. Our Minnesota page has the statute and the price transparency rules.
The Census Bureau's July 1, 2025 estimate counts 124,292 people in Rochester, roughly three of every four Olmsted County residents. We work with Rochester businesses remotely on interchange-plus pricing, where each card costs its interchange and network fees plus one disclosed markup, and set up online payments for web orders. A free statement review puts your current effective rate on paper.
Rules that matter in Rochester, MN
Rochester's half-percent city sales tax
Rochester voters renewed the city's half-percent local sales tax on November 7, 2023. That tax is part of the general rate you collect, which the Department of Revenue's rate guide puts at 8.125% from October 1, 2026. According to the city's local sales tax projects page, the renewal funds a plan of about $205 million covering street repair, flood control, housing, workforce development, and recreation and sports. Special local taxes, such as lodging or food and beverage taxes, aren't included in that general rate.
Sources: City of Rochester, Local sales tax projects; Minnesota Department of Revenue, Local sales and use tax rate guide effective October 1, 2026 (PDF)
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Common questions
What is the sales tax rate in Rochester, Minnesota?
8.125% on general taxable sales, according to the Minnesota Department of Revenue's local rate guide effective October 1, 2026. That's the 6.875% state rate plus 1.25 points of local tax. Special local taxes, such as lodging or food and beverage taxes, aren't part of that figure, so check them separately if they apply to your business.
Can our Rochester store use the same tax settings as our Twin Cities stores?
No. In the October 2026 rate guide, Rochester's general rate is 8.125%, Minneapolis' is 9.025% and St. Paul's is 9.875%. A Rochester register set to St. Paul's rate would overcharge every taxable sale by 1.75 points. Set up each location from its own address using the Department of Revenue's sales tax rate calculator.
Did Rochester voters keep the local sales tax?
Yes. On November 7, 2023, voters renewed the city's half-percent local sales tax, and the city's project page ties it to a plan of about $205 million for street repair, flood control, housing, workforce development, and recreation and sports. The general rate in the Department of Revenue's guide effective October 1, 2026 is 8.125%, so that's the figure to program today.
If my Rochester business is card-only, can a surcharge stay out of my advertised prices?
Probably not. Minnesota's price transparency law requires advertised prices to include mandatory fees. The Attorney General's guidance treats a credit card surcharge as optional, and fine to leave out of the advertised price, when customers can reasonably avoid it by paying cash. If you don't take cash, that reasoning doesn't fit, so plan on including the surcharge in the prices you advertise.
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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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