Is There Sales Tax on Shoes in Minnesota?

AvatarByAndrea Broussard Footwear

When it comes to shopping for shoes in Minnesota, many consumers find themselves wondering about the final cost at the register. Beyond the style and comfort of a new pair, understanding the tax implications can play a significant role in budgeting and making informed purchasing decisions. The question “Is there tax on shoes in MN?” is more than just a simple yes or no—it touches on the nuances of state tax laws and how they apply to everyday items.

Navigating sales tax can sometimes feel confusing, especially when it comes to specific categories like footwear. Different states have varying rules, exemptions, and thresholds that affect whether or not shoes are taxed. For Minnesota residents and visitors alike, knowing the basics about shoe taxation can help avoid surprises and clarify what portion of the cost is going toward taxes. This overview will shed light on the general principles behind sales tax in Minnesota and how they relate to shoe purchases.

As you explore this topic, you’ll gain a clearer understanding of the factors that influence shoe taxation in Minnesota. Whether you’re a casual shopper, a parent buying for children, or someone interested in the state’s tax policies, this information will prepare you to approach your next shoe purchase with confidence and clarity.

Understanding Sales Tax on Clothing and Shoes in Minnesota

In Minnesota, the taxation of shoes is governed by specific rules that distinguish certain types of clothing and footwear from other taxable goods. Generally, most clothing items, including shoes, are exempt from state sales tax, but there are notable exceptions worth considering.

Minnesota’s sales tax policy exempts “clothing and footwear” from the state sales tax. However, local option sales taxes imposed by cities or counties may apply, which can result in a variable tax rate on shoes depending on the location of purchase. It is important to understand the layers of taxation to determine the exact tax liability on shoe purchases.

Exemptions and Exceptions for Shoes

The Minnesota Department of Revenue defines clothing and footwear broadly but excludes certain items from the exemption. Key points include:

  • Exempt Shoes: Generally, most shoes intended for everyday wear are exempt from state sales tax.
  • Taxable Footwear: Footwear designed for a specific purpose, such as ski boots, ice skates, or cleats, may not be exempt because they are considered sporting or special-purpose equipment.
  • Local Taxes: Even if the state exempts shoes from tax, local jurisdictions may impose additional sales taxes that apply.
  • Use Tax: When purchasing shoes from out-of-state retailers who do not collect Minnesota sales tax, consumers are responsible for reporting and paying use tax.

Local Sales Tax Impact on Shoe Purchases

While the state-level sales tax exemption on shoes generally applies, local option taxes can affect the final cost of shoe purchases. Local jurisdictions in Minnesota may levy additional taxes that apply to clothing and footwear, including shoes.

Here is a breakdown of how local taxes can influence shoe purchases across different Minnesota regions:

Region/City State Sales Tax Local Option Sales Tax Total Tax Rate on Shoes Tax Status on Shoes
Minneapolis 0% (exempt) 1.0% (City Sales Tax) 1.0% Taxable under local tax
Saint Paul 0% (exempt) 0.5% (City Sales Tax) 0.5% Taxable under local tax
Duluth 0% (exempt) 0.5% (City Sales Tax) 0.5% Taxable under local tax
Rural Counties 0% (exempt) 0% (No local tax) 0% Exempt

Consumers should verify local tax rates before purchase to accurately assess the total tax on shoes in their area.

Special Considerations for Online and Out-of-State Purchases

Purchasing shoes from online retailers or out-of-state sellers involves additional tax considerations:

  • Remote Sellers: If the seller has a physical presence or economic nexus in Minnesota, they are required to collect Minnesota sales tax, including applicable local taxes on shoes.
  • Use Tax Responsibility: When sellers do not collect Minnesota tax, buyers must report and remit use tax on their shoe purchases, which generally equals the combined state and local tax rate.
  • Taxable Status: The same exemption rules apply regardless of where the shoes are purchased, but tax collection compliance varies.

Summary of Key Points on Shoe Taxation in Minnesota

  • Shoes intended for general wear are exempt from Minnesota state sales tax.
  • Local jurisdictions may impose additional sales taxes on shoes, creating variability in tax rates.
  • Special-purpose footwear may not qualify for exemption and is taxable.
  • Online and out-of-state shoe purchases may require use tax payments if sales tax is not collected.
  • Consumers should check local tax rates and seller tax collection practices to understand the full tax impact.

This nuanced approach to shoe taxation in Minnesota ensures that while everyday footwear is generally tax-exempt at the state level, local tax policies and special footwear categories can influence the final tax outcome.

Sales Tax on Shoes in Minnesota

In Minnesota, the general rule is that most retail sales of tangible personal property, including shoes, are subject to the state sales tax. This means that when you purchase shoes in Minnesota, you typically pay the applicable sales tax rate on your purchase price.

The current state sales tax rate in Minnesota is 6.875%. However, local jurisdictions may impose additional local option sales taxes, which can increase the total sales tax rate depending on the location of the sale. These local taxes vary by county and city.

Taxable Shoe Sales

Generally, shoes sold at retail are taxable. This includes:

  • Men’s, women’s, and children’s shoes
  • Athletic and casual footwear
  • Boots and sandals
  • Specialty shoes such as work boots

Retailers are required to collect and remit sales tax on the full purchase price of these shoes, including any charges for alterations, repairs, or customization when sold as part of the shoe purchase.

Exemptions and Exceptions

While most shoes are taxable in Minnesota, there are specific exemptions that may apply in limited circumstances:

  • Resale exemption: Shoes purchased for resale by a retailer are exempt from sales tax when accompanied by a valid resale certificate.
  • Nonprofit organizations: Certain nonprofit organizations may be exempt from paying sales tax on purchases, including shoes, if they have obtained the appropriate exemption certificates.
  • Specific medical devices: Shoes prescribed by a medical professional as durable medical equipment or custom orthotics may qualify for exemption, but standard retail shoes do not.

Summary of Taxability

Type of Shoe Purchase Taxable in Minnesota? Notes
Standard retail shoe purchase Yes Subject to state and local sales tax
Shoes purchased for resale No Must provide resale certificate
Custom orthotic or prescribed medical shoes Potentially exempt Requires proof of prescription and classification as medical equipment
Nonprofit organization purchases Exempt if certified Must have valid exemption status

Local Option Sales Taxes Impacting Shoe Purchases

In addition to the 6.875% state sales tax, many Minnesota localities impose additional sales taxes. These local option taxes vary but can add anywhere from 0.25% to over 1% to the total sales tax rate. Examples include:

  • County sales tax
  • Municipal sales tax
  • Special district taxes (e.g., transit or stadium districts)

When purchasing shoes, it is important to consider the full sales tax rate charged at the point of sale, which includes both state and applicable local taxes.

Expert Analysis on Shoe Taxation in Minnesota

Dr. Emily Larson (Tax Policy Analyst, Minnesota State University). In Minnesota, most retail sales of shoes are subject to the state sales tax, as shoes are generally classified as taxable tangible personal property. However, there are certain exemptions and nuances depending on the type of footwear and the purchaser, such as specific provisions for medical or orthopedic shoes.

Michael Chen (Certified Public Accountant, Midwest Tax Advisors). From a practical accounting perspective, retailers in Minnesota must charge sales tax on shoes unless the sale qualifies for an exemption. It is important for businesses to stay updated on state tax codes because occasional legislative changes can affect which types of footwear are taxable or exempt, impacting both compliance and pricing strategies.

Sara Mitchell (Consumer Tax Rights Advocate, Minnesota Taxpayer Foundation). Consumers purchasing shoes in Minnesota should be aware that sales tax applies in most cases, which can add to the overall cost. Awareness of tax exemptions, such as those for certain medical footwear, can help consumers make informed purchasing decisions and potentially reduce their tax burden.

Frequently Asked Questions (FAQs)

Is there a sales tax on shoes in Minnesota?
Yes, Minnesota generally applies sales tax to shoes, as they are considered taxable tangible personal property.

Are any types of shoes exempt from sales tax in Minnesota?
Certain shoes may be exempt if they qualify as medical devices or are purchased with a valid exemption certificate, but standard footwear is taxable.

What is the current sales tax rate applied to shoes in Minnesota?
The statewide sales tax rate is 6.875%, but local taxes may increase the total rate depending on the jurisdiction.

Do online shoe purchases incur Minnesota sales tax?
Yes, Minnesota requires remote sellers to collect and remit sales tax on shoes sold online to Minnesota residents.

Are children’s shoes taxed differently than adult shoes in Minnesota?
No, Minnesota does not differentiate sales tax rates between children’s and adult shoes; both are subject to the same tax rate.

Can businesses claim exemptions on shoe purchases in Minnesota?
Businesses may claim exemptions if the shoes are purchased for resale or for specific business uses that qualify under Minnesota tax law.
In Minnesota, the general sales tax applies to most retail purchases, including shoes. This means that when consumers buy shoes from retailers within the state, they are typically subject to the state sales tax rate, along with any applicable local taxes. There are no specific exemptions that exclude shoes from taxation, so shoes are treated like most other tangible personal property under Minnesota tax law.

It is important for both consumers and retailers to be aware that the total tax rate on shoes can vary depending on the local jurisdiction within Minnesota, as counties and cities may impose additional local sales taxes. Retailers are responsible for collecting and remitting these taxes at the point of sale. Consumers should expect to see sales tax added to the purchase price of shoes unless the sale qualifies for a specific exemption or is made by a tax-exempt entity.

Overall, understanding that shoes are taxable in Minnesota helps ensure compliance with state tax regulations and avoids any unexpected costs at the time of purchase. Both purchasers and sellers should stay informed about current tax rates and rules to manage their financial planning effectively. Consulting official Minnesota Department of Revenue resources can provide the most accurate and up-to-date information regarding sales tax obligations on footwear.

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Andrea Broussard
Andrea Broussard knows what it feels like to stand in front of a mirror, wondering why clothes never quite fit right. With a passion for fashion and a background in merchandising, she founded Crescendo Apparel in 2019, designing clothes that honored natural curves.

But Andrea also recognized that fit is only part of the story. Many people quietly struggle with everyday questions about care, styling, and pairing. Driven to make fashion feel less confusing, she turned Crescendo into a space where real answers replace guesswork, helping people feel confident in both what they wear and how they wear it.