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Is clothing taxable in Minnesota?
byMay 5, 2022
In most states, clothing is considered tangible personal property and subject to sales tax. But a few US states consider clothing tax exempt, or have designated certain clothing items exempt, while making others taxable. This is the case in Minnesota, where not all clothing is taxable. We’ll cover everything an e-commerce company needs to know about sales tax on clothing purchases in Minnesota.
Minnesota Clothing Taxability Guidelines
In Minnesota, clothing is tax exempt, but clothing accessories, most protective equipment, sports and recreational clothing and equipment, and fur clothing are taxable. Here are some examples of what clothing items are considered taxable and nontaxable in Minnesota:
Taxable accessories and equipment:
- Life preservers and vests
- Safety shields and visors
- Wet suits
Tax exempt clothing:
- Boots (except ski and fishing boots)
- Caps and hats
- Jackets and coats
- Snowmobile suits
- T-shirts and jerseys
For a comprehensive list of what clothing items are taxable in Minnesota, this is a good resource from the Minnesota Department of Revenue.
How to Automate Minnesota Sales Tax Collection
Do you sell clothing online? Minnesota is just one of many US states, like New Jersey and Ohio, where clothing items are taxed differently. If you accidentally collect sales tax on a product that isn’t taxable, you create a negative customer experience. But if you don’t collect sales tax on a product that was actually taxable, you end up owing that sales tax out of pocket when it comes time to file your sales tax returns with the state, not to mention you could be on the hook for penalties.
That’s why TaxJar has your back. With the TaxJar API, you can be sure you’re collecting the right amount of sales tax. Our product tax codes ensure you collect sales tax on qualifying purchases, and exempt items that are not taxable.
For e-commerce companies selling in multiple states, having a sales tax solution is crucial, since state laws vary. For example, clothing priced under $110 is non-taxable at the state level in New York, while clothing is generally taxable in a majority of US states. With TaxJar, you’ll collect the right amount of sales tax from every customer, in every state, every time.
Ready to automate sales tax collecting, reporting and filing? To learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
The basics of US sales tax
Learn the fundamentals of sales tax.Watch the video