# Is There Sales Tax on Clothing in Minnesota? A Guide for Businesses

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Published: 2025-01-22

Minnesota exempts most everyday clothing from sales tax, but accessories, protective gear, sporting equipment, and rental formalwear are taxable.

Minnesota generally exempts most clothing from sales tax, giving retailers and consumers a different result from many other states. Some accessories, protective equipment, sporting equipment, costume masks sold separately, rental clothing, and craft fabric are taxable.

This article is an educational overview. Confirm current Minnesota treatment with the Minnesota Department of Revenue.

## Is There Sales Tax on Clothing in Minnesota?

Most everyday apparel is exempt. Minnesota Statute 297A.67 exempts clothing suitable for general use, such as shirts, pants, coats, and general-purpose boots, whether it is bought in a store or online. The exemption does not automatically cover every item sold by a clothing retailer.

### Items That May Be Taxable

- Jewelry, watches, handbags, and belt buckles sold separately from a belt.
- Helmets, face shields, safety glasses, and knee pads.
- Cleats, ice skates, shoulder pads, and sporting equipment.
- Costume masks sold separately from a costume; costumes themselves are generally exempt clothing.
- Fabric and supplies for arts and crafts projects (fabric, thread, and yarn used to make clothing are exempt).
- Formalwear and other rental clothing.
- Fur clothing, when the fur is worth more than three times the next most valuable component.

### Are shoes and boots taxed in Minnesota?

Most footwear is exempt, including sneakers, sandals, dress shoes, and general-purpose boots. Steel-toe shoes and boots are exempt too: the Minnesota Department of Revenue treats them as general-use clothing, because a protective quality alone does not make an item taxable protective equipment. Footwear made for a specific sport, such as ski boots, cleated shoes, and skates, is taxable.

## Related Questions

Clothing, prescription medications, and certain groceries are generally exempt, while Minnesota still has a retail sales tax on many other goods and services. Clothing sold at the Mall of America follows the same state exemption rules.

## Economic Nexus and Use Tax

Remote sellers should monitor Minnesota nexus requirements even when most clothing sales are exempt. A remote seller must collect Minnesota sales tax once it makes 200 or more retail sales, or more than $100,000 in retail sales, shipped to Minnesota over 12 consecutive months. Once registered, you collect tax on the taxable items you sell, such as accessories and sporting equipment.

Use tax can apply to taxable items purchased without tax elsewhere and used in Minnesota.

## How Clothing Tax Affects Retailers

Retailers must classify products correctly, set prices and cash-flow expectations, retain taxable and exempt sales records, manage multi-state obligations, and prepare for audits. Incorrect tax application can create customer dissatisfaction and penalties.

## Compliance Tips

1. Understand which products qualify as clothing.
2. Maintain detailed taxable and exempt sales records.
3. Monitor economic nexus.
4. Review use-tax obligations.
5. Train employees on classifications and certificates.
6. Follow Minnesota Department of Revenue updates.
7. Use automation to apply configured treatment consistently.

## Stay Compliant with Kintsugi

Kintsugi can help retailers categorize products, apply current configured rates, distinguish taxable accessories and equipment, and organize sales-tax workflows.

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**Related resource:** For current rates, nexus thresholds, filing deadlines, and FAQs, see Kintsugi's [Minnesota Sales Tax Guide](/sales-tax-guides/usa/minnesota).