Minnesota Sales Tax Guide for Selling Candy & Sweets

ByAaron Hall Updated Business Law

Minnesota Sales Tax Guide for Selling Candy & Sweets

The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Selling Candy & Sweets. The following post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet #102B, Candy.

Candy is taxable. Candy is the preparation of sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces regardless of size.

Candy does not include any preparation containing flour and must require no refrigeration.

What’s New

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

Vending Machine Sales

The only taxable food sold through vending machines is prepared food, soft drinks, candy, and dietary supplements. For more information, see the Vending Machines and Other Coin-Operated Devices Guide.

Flour

Items that contain the word “flour,” such as white, whole wheat, rice, corn, or brown flour, on the ingredient label are not taxable. Ingredients such as soy or whey used in place of flour, are not flour.

Refrigeration

If an item requires refrigeration, it is not candy. For example, ice cream bars require refrigeration so they are not taxable. These items are taxable if they are prepared food. For more information, see the Prepared Food Fact Sheet.

Candy that does not require refrigeration is taxable even if it is sold frozen.

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 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 our website www.revenue.state.mn.us and type Cannabis Tax into the Search box.

Sweeteners

Examples of sweeteners include:

  • artificial sweeteners
  • aspartame
  • barley malt
  • corn syrup
  • dextrose
  • evaporated cane juice
  • fructose
  • fruit juice concentrates
  • honey
  • invert sugar
  • molasses
  • rice syrup
  • saccharin
  • stevia
  • sucralose
  • sucrose

Taxable Candy

Examples of taxable candy include:

  • almond bark
  • breath mints
  • breakfast and nutrition bars without flour
  • candy bars
  • chocolate chips
  • chocolate-coated potato chips
  • fruit roll-ups
  • marshmallows
  • caramel corn
  • caramel apples
  • chocolate or carob covered raisins, nuts, etc.
  • sweet or semi-sweet cooking bars or chips
  • gum
  • honey roasted and honey coated nuts, beer nuts
  • peanut brittle
  • sugarless candy
  • yogurt covered raisins, nuts, etc.

Note: Cotton candy is commonly thought of as candy, but it is not candy because it is not sold in the form of bars, drops, or pieces. Cotton candy is taxable when prepared by the seller.

Legal References

  • Minnesota Statutes 297A.61
    • subd. 3(d), Definitions
    • subd. 33, Candy
  • Minnesota Rule 8130.4700, Prepared Food, Candy, and Soft Drinks

Fact Sheets

  • Dietary Supplements
  • Food and Food Ingredients
  • Prepared Food
  • Soft Drinks and Other Beverages

Guides

  • Eating Establishments
  • Vending Machines and Other Coin-Operated Devices

Previous Minnesota Sales Tax Guide for Selling Candy & Sweets

The following is the prior Fact Sheet for Minnesota Sales Tax Guide for Selling Candy & Sweets. This has been superseded by the Fact Sheet above. This is preserved for historical purposes only.

The following post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet #102B, Candy.

Candy is taxable. The exemption for food products does not apply to candy. “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces regardless of size. Candy does not include any preparation containing flour and must require no refrigeration.

Flour

Items that contain the word “flour,” such as white, whole wheat, rice, corn, or brown flour, as an ingredient on the label are not taxable candy. Examples of items that contain flour that are not taxable include Kit Kats, Twix, Reese-Sticks, and licorice. Food ingredients such as soy or whey that are sometimes used in place of flour are not flour.

Refrigeration

If an item requires refrigeration, it is not candy. For example, Popsicles and ice cream bars require refrigeration so they are not taxable candy. However, these items are taxable if they are prepared food. See Fact Sheet #102D, Prepared Food, for more information.

Candy that does not require refrigeration is taxable even if it is sold frozen.

Sweeteners

Examples of sweeteners are corn syrup, dextrose, invert sugar, sucrose, fructose, sucralose, saccharin, aspartame, stevia, fruit juice concentrates, molasses, evaporated cane juice, rice syrup, barley malt, honey, and artificial sweeteners.

Note: All food sold from vending machines, or food prepared by the seller, is taxable. Cotton candy is commonly thought of as candy, but it is not candy because it is not sold in the form of bars, drops or pieces. Cotton candy is taxable when prepared by the seller.

Examples of taxable candy include:

  • almond bark
  • breath mints
  • breakfast and nutrition bars without flour
  • candy bars
  • chocolate chips
  • chocolate-coated potato chips
  • fruit roll-ups
  • marshmallows
  • caramel corn
  • caramel apples
  • chocolate or carob covered raisins, nuts, etc.
  • sweet or semi-sweet cooking bars or chips
  • gum
  • honey roasted and honey coated nuts, beer nuts • peanut brittle
  • sugarless candy
  • yogurt covered raisins, nuts, etc.

Brand names are shown for illustration purposes only and do not imply sole representation in any category.

References

  • Minnesota Statute section 297A.61, Subd. 3(d), Definitions
  • Minnesota Statute section 297A.61, Subd. 33, Candy
  • MN Rule 8130.4700, Prepared Food, Candy, and Soft Drinks

Other Fact Sheets

Click here for more Minnesota Sales Tax Guides.

This fact sheet is intended to help you become more familiar with Minnesota tax laws and your rights and responsibilities under the laws. Nothing in this fact sheet supersedes, alters, or otherwise changes any provisions of the tax law, administrative rules, court decisions, or revenue notices. Alternative formats available upon request.