Sales Tax in Graceville, Minnesota in 2025

We'll walk you through how the sales tax rate is determined for Graceville and address some common questions you may have. We'll also cover how to collect, audit, and remit sales tax in Graceville.

Plus, we’ll share the best solution that will ensure you are always compliant across the entire sales tax lifecycle.

Disclaimer: Our sales tax data is updated on a quarterly basis. 

Graceville Sales Tax Rate 2025

Many cities in Minnesota levy a local sales tax on top of the state sales tax. Many counties in Minnesota levy an additional sales tax on top of that.

But lucky Graceville residents don't have to pay either.

Since Graceville doesn't levy any local or special sales tax and Big Stone County doesn't levy any county sales tax, the only sales tax you need to pay in Graceville is the state tax, which is 6.88% in Minnesota.

This rate applies to the following zip codes in Graceville:

56240

How Does the Graceville Sales Tax Compare to the Rest of Minnesota?

Graceville is among the cities with the lowest sales tax rate (6.88%) in Minnesota. It is 3.00% lower than Minnesota’s highest rate, which sits at 9.88% and can be found in cities like St. Paul.

To give you a better idea, here’s a comparison of Graceville sales tax rates with a few other cities in Minnesota:

City	Sales Tax Rates
Graceville	6.88%
Graceville	6.88%
Felton	7.38%
Kelliher	8.00%
Cloquet	8.88%
Maple Grove	9.03%

You can also compare the sales tax rate of Graceville against the Minnesota cities closest in population size:

• Minnetonka Beach's sales tax rate is 8.53%
• Amboy's sales tax rate is 7.38%

What Creates Sales Tax Nexus in Graceville?

Graceville has the same sales tax nexus rules as Minnesota. It doesn’t have any special rules specifically for Graceville.

Read More: Check out this detailed guide on Sales Tax in Minnesota.

You have a sales tax nexus in Graceville if you meet any of the following factors:

• Physical presence: Businesses that sell or lease property in Minnesota, such as offices, healthcare facilities, distribution centers, etc.
• Representatives: Companies with employees, representatives, salespersons, and independent contractors in Minnesota.
• Delivery: Businesses that deliver tangible personal property into Minnesota in their own vehicles.
• Economic nexus: Companies with more than 200 retail sales shipped to Minnesota or that make more than $100,000 in retail sales shipped to Minnesota.

Note: If you’re a remote seller and don’t meet these thresholds, you’ll be eligible for the Small Seller Exception.  

Learn more about sales tax nexus and when you’re required to collect sales tax.

What Products Are Exempt from Graceville Sales Tax?

Graceville doesn't have any special exemptions and follows the same sales tax rules as Minnesota.

The items exempt from sales tax in Graceville are:

• Clothing, like formal wear, sandals, karate uniforms, and more.
• Food, like baking powder, cereals, dairy products, and more.
• Medicines, acne medications, antihistamines, burn drugs, and more.
• Secure firearm storage units.
• Barbershop services, like hair cutting, spa, hair removal, and more.

Who Needs a Sales Permit in Graceville?

You’ll need to sales tax permit in Graceville if you meet these two requirements:

• You have a sales tax nexus in Minnesota
• You sell taxable products or services in Minnesota

You can create an account and register online via the Business Tax Registration website. 

How to Collect Sales Tax in Graceville

Graceville uses destination-based sales tax sourcing for all businesses located outside and inside the state. This means that if you sell to a customer in Graceville, you must apply the sales tax rate based on the buyer’s shipping address.

Learn more about origin-based and destination-based sales tax sourcing here.

How to File and Pay Sales Tax in Graceville

You can file Graceville sales tax returns using the following methods:

• File and pay online: File online at MN e-services as Minnesota requires online filing. 
• Or, let Zamp handle your Minnesota sales tax filing and remittance so you never have to look at a sales tax return again!