Does Minnesota (MN) have sales tax on clothing?
Minnesota is one of the few states in the U.S. that does not impose sales tax on most clothing. This exemption applies to apparel purchased for general, everyday use, making Minnesota a consumer-friendly destination for clothing retailers and shoppers alike.
Clothing That Is Not Taxed in Minnesota
The following types of clothing are exempt from sales tax under Minnesota law:
- Everyday apparel such as shirts, pants, dresses, and shoes
- Outerwear like jackets, coats, and gloves
- Children's and infant clothing
- Undergarments and sleepwear
- Uniforms for general work purposes (unless required safety gear)
These exceptions work whether you buy stuff at the store or online (if the seller collects Minnesota sales tax).
Clothing That Is Taxable in Minnesota
Most clothes are tax-free, but there are some exceptions. You'll pay sales tax on:
- Sports gear like ski boots, cleats, and wetsuits
- Costume and formal wear rentals
- Protective or safety gear (e.g., steel-toe boots, high-visibility vests)
- Fashion accessories (e.g., purses, jewelry, hair clips)
Retailers must carefully distinguish between exempt and taxable items to remain compliant.
Business Implications
If you’re a retailer in Minnesota:
- You must understand and apply tax exemptions correctly
- Maintain records to distinguish between exempt and taxable sales
- Report exempt clothing sales on your sales tax return
If you sell online to Minnesota residents, sales tax collection may be required based on economic nexus rules, but clothing exemptions still apply.
Final Thought
Minnesota’s clothing tax exemption provides a competitive advantage for retailers and a cost-saving benefit for consumers. However, understanding the distinction between taxable and non-taxable apparel is crucial. For businesses seeking compliance assistance, One IBC USA offers professional support for sales tax management across all sectors in Minnesota.
