Minnesota Sales Tax Guide for Dietary Supplements

The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Dietary Supplements. The following post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet 102E, Soft Drinks and Other Beverages.

What’s New

Starting July 1, 2023, edible cannabinoid products are subject to the Cannabis Tax. See Cannabinoid
Products.

Dietary Supplements

Dietary supplements are taxable food products. Dietary supplements means any product intended to supplement the diet that:

  • contains one or more of the following dietary ingredients: a vitamin; a mineral; an herb or other botanical;
    an amino acid; a dietary substance for use by humans to supplement the diet by increasing
    the total dietary intake; and a concentrate, metabolite, constituent, extract, or combination of any of
    the above ingredients;
  • is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended
    for ingestion in such form, is not represented as conventional food and is not represented for use as a
    sole item of a meal or of the diet; and
  • is required to be labeled as a dietary supplement, identifiable by the supplement facts box found on
    the label and as required pursuant to Code of Federal Regulations, title 21, section 101.36.

Any item that is required by the FDA to be labeled with “Supplement Facts” is taxable.

This includes certain teas, appetite suppressants and/or stimulants, or food supplements such as vitamins and minerals, whether sold in tablet, capsule, powder, softgel, gelcap, or liquid form.

Taxable Dietary Supplements Include:

  • Amino acids
  • Antioxidants
  • Bee pollen
  • Enzymes
  • Fiber supplement
  • Garlic capsules
  • Ginseng
  • Herbal supplements
  • Immune supports
  • Lecithin
  • Metabolic supplements
  • Vitamins and minerals
  • Zinc lozenges

Meal substitutes labeled with ‘Nutrition Facts’ are not taxable. Examples include unsweetened breakfast bars or bars that contain flour.

Cannabinoid Products

Currently, edible cannabinoid products and nonintoxicating topical products are legal to sell in Minnesota.
Starting July 1, 2023, edible cannabinoid products are subject to the 10% Cannabis Tax. In addition to the Cannabis Tax, taxable cannabis products are subject to both:

  • 6.875% state general rate sales tax
  • Any applicable local sales taxes based on where the transaction takes place

Nonintoxicating topical products are not subject to the 10% Cannabis Tax, but are subject to both:

  • 6.875% state general rate sales tax
  • Any applicable local sales taxes based on where the transaction takes place

For more information, go to www.revenue.state.mn.us and type Cannabis Tax into the Search box.

Legal References

  • Minnesota Statutes 297A.61, subd. 3(d), Sale and purchase
  • Minnesota Statutes 297A.67, subd. 2, Food and food ingredients

Other Fact Sheets

  • Candy
  • Food and Food Ingredients
  • Prepared Food
  • Soft Drinks and Other Beverages

Industry Guides

  • Vending Machines and Other Coin-Operated Devices