The sales tax rate in Apple Valley, MN is 8.125 percent as of 2026, charged on most retail purchases made in the city or delivered to an address there.1Minnesota Department of Revenue. Local Sales and Use Tax Rate Guide 2026 Q2 Apple Valley does not impose a city sales tax of its own, so the full rate comes from state, county, and regional layers stacked together.
How the 8.125 Percent Breaks Down
Four separate taxes make up the rate you see at the register.
- State sales tax — 6.875 percent. Every Minnesota retailer collects this. It combines a 6.5 percent base rate with a 0.375 percent constitutional surcharge for environmental and outdoor heritage funding. The surcharge is set to expire on July 1, 2034.2Minnesota Office of the Revisor of Statutes. Minnesota Code 297A.62 – Sales Tax Imposed; Rates
- Dakota County transit tax — 0.25 percent. A quarter-cent county tax that funds transportation projects, authorized under Minnesota Statute 297A.993.3Dakota County. Sales and Use Tax
- Metropolitan region tax — 0.25 percent. A regional tax funding housing investments in the seven-county Twin Cities metro, effective October 1, 2023.
- Regional transportation tax — 0.75 percent. A metro-area tax funding transit and active transportation projects, also effective October 1, 2023.4Metropolitan Council. Regional Transportation Sales and Use Tax
Added together, 6.875 + 0.25 + 0.25 + 0.75 equals 8.125 percent.1Minnesota Department of Revenue. Local Sales and Use Tax Rate Guide 2026 Q2 Since the city adds nothing on top, the rate is uniform across Apple Valley with no special district pockets to track.
What You Pay the Full Rate On
Most tangible goods sold in Apple Valley are taxable at 8.125 percent. Electronics, furniture, household appliances, sporting goods, and general retail merchandise all qualify. If you can hold it and it isn’t specifically exempt, assume it’s taxable.
Digital products are treated the same way. Downloaded movies, streaming music, e-books, and video games have been part of Minnesota’s sales tax base since July 2013.5Minnesota House of Representatives. The Minnesota Sales Tax Base A digital purchase delivered to an Apple Valley address carries the same rate as the physical version at the store.
Repair work has a wrinkle worth knowing. Repair labor is not taxable when the labor charge is listed separately from parts on the invoice. If a mechanic bills $200 for labor and $80 for parts, only the $80 in parts is taxed. If the shop lumps everything into one line, the entire charge may be taxable.6Minnesota Department of Revenue. Labor – Installation, Fabrication, Construction, and Repair Ask for an itemized invoice.
What’s Exempt
Minnesota exempts several categories of everyday purchases, and those exemptions apply the same way in Apple Valley.
- Clothing. All human wearing apparel “suitable for general use” is exempt, with no price cap. A $15 t-shirt and a $500 winter coat are both tax-free.7Minnesota Office of the Revisor of Statutes. Minnesota Code 297A.67 – General Exemptions
- Groceries. Food and food ingredients sold for home consumption, including cereal, produce, dairy, meat, eggs, cooking oils, and spices, are exempt.
- Prescription drugs and qualifying medical devices. Prescriptions, diagnostic instruments, implants, and prosthetics are not taxed.7Minnesota Office of the Revisor of Statutes. Minnesota Code 297A.67 – General Exemptions
Where the Grocery Line Gets Blurry
Raw ingredients and shelf-stable groceries are exempt, but once food qualifies as “prepared food” under Minnesota law it becomes taxable at the full rate. Restaurant meals, deli counter items, and food sold heated or ready-to-eat all fall on the taxable side.8Minnesota Office of the Revisor of Statutes. Minnesota Administrative Rules 8130.4700 – Prepared Food, Candy, and Soft Drinks
Three other grocery-aisle items get taxed even though they share shelf space with exempt food: candy, soft drinks, and dietary supplements. Minnesota defines each narrowly. Candy means sugar-based confections such as bars, drops, and pieces combining sweeteners with chocolate, fruit, or nuts. Soft drinks are sweetened nonalcoholic beverages. Dietary supplements are products labeled with a “Supplement Facts” panel. If the label reads “Nutrition Facts,” it’s food; if it reads “Supplement Facts,” it’s taxable.7Minnesota Office of the Revisor of Statutes. Minnesota Code 297A.67 – General Exemptions
Online Orders, Deliveries, and Out-of-Town Purchases
Minnesota uses destination-based sourcing, meaning the rate is set by where the buyer receives the product. If a taxable item is delivered to your Apple Valley home, the 8.125 percent rate applies no matter where the seller ships from.9Minnesota Office of the Revisor of Statutes. Minnesota Code 297A.668 – Sourcing of Sale
Pick an item up at a store in another city and you pay that city’s rate instead. A store in Minneapolis, which adds its own city sales tax on top of the metro and county layers, will charge a higher combined rate than you’d pay in Apple Valley. For in-person purchases, the rate follows the transaction location, not your home address.
Use Tax on Purchases That Weren’t Taxed
If you buy a taxable item online or out of state and the seller doesn’t charge Minnesota sales tax, you owe use tax on that purchase. The use tax rate matches the sales tax rate: 6.875 percent state plus any applicable local taxes, which comes to the same 8.125 percent for an Apple Valley address.10Minnesota Department of Revenue. Use Tax for Individuals
Common situations include buying from a small online seller that hasn’t registered in Minnesota, bringing goods home from a trip to another state, or ordering from an international seller. The same exemptions apply, so you don’t owe use tax on exempt clothing or groceries.
Individuals report and pay use tax by filing with the Minnesota Department of Revenue by April 15 of the following year, online or on paper using Form UT1.10Minnesota Department of Revenue. Use Tax for Individuals Most large online retailers and marketplace platforms now collect Minnesota sales tax automatically, so this obligation comes up less often than it used to, but it hasn’t gone away.