Barber Shop, Salon, and Spa Services
Taxable and nontaxable Personal Services for barber shops, salons, and spa services are listed.
Below are some examples of services and products and whether or not the sale is taxable.
Service or Product
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Taxable or Not Taxable
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Examples
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Barber shop and salon services
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Not taxable
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- Cutting, coloring, highlighting, perming trimming, and styling hair
- Extending and restoring hair
- Hair removal and waxing
- Shaving face or neck
- Shampooing and conditioning treatments
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Spa Services
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Not taxable
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- Aroma therapy baths
- Body scrubs, polishes, and wraps
- Facials
- Manicures and pedicures
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Beauty and cosmetic product sales
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Taxable
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- Hair pieces, if separately stated on invoice
- Hair products
- Makeup
- Skincare products
- Wigs
Do not pay sales or use tax when purchasing these products; give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption. |
When a package sale includes taxable and nontaxable items or services for one price, the package is taxable. When the taxable items or services are 10 percent or less of the package price, the package is not taxable.
Examples
- A $100 spa package includes:
- Massage ($45, taxable)
- Small lunch ($10, taxable)
- Pedicure and manicure ($45, nontaxable)
The spa package is taxable because the massage and lunch is 55 percent of the package price.
- A $200 spa package includes:
- Facial ($65, nontaxable)
- Body wrap ($80, nontaxable)
- Small lunch ($10, taxable)
- Pedicure and manicure ($45, nontaxable)
The spa package is nontaxable because the lunch is 5 percent of the package price.
Examples of nontaxable and taxable purchases are listed below.
Type of item being purchased
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Taxable or Not Taxable
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Examples
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- Consumable materials – items used while providing the service and are not reused afterward.
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- Cosmetics
- Cotton ball/pads
- Nail polish, nail polish remover
- Shampoo/conditioner
- Sanitizing spray
- Wax
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- Brushes and combs
- Chair and floor mats
- Hair dryers
- Nail clippers
- Scissors and shears
- Styling chairs
- Styling tools (straighteners, curling irons)
- Towels
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- Aprons
- Bath robes
- Capes
- Gloves
- Slippers
- Work clothes/uniforms
Note: General clothing items are not taxable. However, some clothing accessories and equipment are taxable. For more information, see Clothing. |
Tanning
Most tanning products and services require sales tax.
Below are some examples of taxable and nontaxable tanning services.
Tanning Service
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Taxable or Not Taxable
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- Fees to use tanning equipment
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- Memberships to use tanning equipment
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Note: Tanning equipment contains lamps (ultraviolet or other) that tan skin through exposure to ultraviolet radiation
Tanning products sold to a customer are taxable. You do not pay sales or use tax when you purchase these products. Instead, give your supplier a completed Form ST3, Certificate of Exemption, and specify the resale exemption. Examples include:
- Bronzers
- Lotions, creams, or sprays
- Tanning accelerators or extenders
Examples of nontaxable and taxable purchases are listed below.
Type of item being purchased
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Taxable or Not Taxable
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Examples
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- Consumable materials – items used while providing the service and are not reused afterward.
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- Spray tanning solutions
- Stickers
- Tanning bed cleaners
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- Protective eyewear (provided to customer for free during tanning)
- Spray tanning systems
- Tanning beds/booths
- Tanning lamps
- Towels
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Massages
A massage is pressure applied to the body to relieve tension or pain. Massages are given manually or through a machine.
Massages are taxable, but other massage-related services are not.
Examples of Taxable and Nontaxable Massages
Taxable Massages
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Nontaxable Services
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- Acupressure
- Myofascial release
- Neuromuscular therapy
- Ohashiatsu
- Polarity therapy
- Reflexology
- Rolfing
- Shiatsu
- Sports massage
- Trager
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- Acupuncture
- Athletic training
- Chiropractic
- Homeopathy
- Osteopathy
- Physical therapy
- Podiatry
- The practice of medicine
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Donated Massages
Donated massages are not taxable. The donor owes sales or use tax on any taxable items used in providing the massage.
Contracted Massages
When a business contracts with a massage therapist to provide massage services, the party who bills the customer is responsible for collecting and reporting the sales tax.
Written Referrals for Massages
The massage is not taxable if a customer has a written referral from a licensed health professional stating the massage is for the treatment of illness, injury, or disease. A written referral must:
- State the massage is for ongoing treatment of illness, injury, or disease
- Be written by a licensed health care provider or licensed health care facility
A written referral is a form of tax-exempt documentation, and you must keep a copy of all of them.
Massages for Ongoing Treatment Provided Through a Licensed Health Care Facility
The massage is not subject to sales tax if it is for ongoing treatment of illness, injury, or disease and is provided by or through a licensed health care facility (hospital, medical clinic, or chiropractor’s office). However, the massage is subject to MinnesotaCare tax.
For more information, see Revenue Notice 07-06: Minnesota Care Tax and Sales Tax-Patient Services-Massage Therapy.
Product Sales
Products sold to a customer are taxable. You do not pay sales or use tax when you purchase these products. Instead, give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption. Examples include:
- Dietary supplements
- Herbs
- Lotions/oils
- Vitamins
Purchases
Type of item purchased
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Taxable or Not Taxable
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Examples
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- Consumable materials – items used while providing the service and are not reused afterward.
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- Body oils
- Disposable covers
- Disposable towels
- Lotions
Do not pay sales or use tax when purchasing these items; give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption. |
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- Diffusers
- Face pillows
- Floor mats
- Hot stones
- Massage tables and chairs
- Reusable covers and towels
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- Aprons
- Bath robes
- Capes
- Gloves
- Slippers
- Work clothes/ uniforms
Note: General clothing items are not taxable. However, some clothing accessories and equipment are taxable. For more information, see Clothing. |
Diet and Weight Loss Programs
Diet and weight loss programs are not taxable. However, some products and supplements sold as part of the program may be taxable.
Sales
Diet and weight loss programs help clients get or keep a goal weight. Below are some examples of taxable and nontaxable services and products.
Service or Product
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Taxable or Not Taxable
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Examples
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- Diet and weight loss programs
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- Creating menu and exercise plans
- Counseling individuals or a group
- Monitoring weight and body measurements
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- Dietary supplements labeled with “Supplemental Facts”
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- Amino acids
- Antioxidants
- Enzymes
- Herbal supplements
- Immune supports
- Vitamins and minerals
For more information see Dietary Supplements. |
- Program products sold to a customer
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Program products sold to a customer
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- Books
- Dietary supplements
- Meal replacement bars that contain sweeteners and no flour
- Training materials
Do not pay sales and use tax when you purchase these products; give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption. |
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These meals are ready to eat at the time of sale.
For more information see Prepared Food. |
- Meal plans that require cooking or heating
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These meals require cooking or heating after the sale.
For more information see Food and Food Ingredients. |
Purchases
Program products included in the price of the weight loss program are not taxable when the cost of the items is 10% or less of the total program fee.
You must pay sales or use tax when your purchase the items included in the program fee.
Miscellaneous Personal Services
Charges for miscellaneous personal services are not taxable. However, some products sold as part of the Personal Service may be taxable.
Personal Trainers
Fees for personal trainers are not taxable. However, monthly gym memberships that include access to personal trainers as well as the gym classes and equipment are taxable.
If the charge for a personal trainer is listed separately from the monthly gym membership, the personal trainer fee is not taxable.
Yoga Lessons
Fees to attend yoga classes are not taxable. However, monthly gym memberships that include access to yoga classes and all the other gym classes and equipment are taxable if the charge for the use of the facility is a significant part of the total cost of the lessons.
If the charge to attend a yoga class is listed separately from the monthly gym membership, the yoga fee is not taxable.
Sales or rentals of yoga mats or towels are taxable. You do not pay sales or use tax when you purchase these products. Instead, give your supplier a completed Form ST3, Certificate of Exemption, and specify the resale exemption.
A gym/yoga studio that provides free yoga mats or towels to their customers who work out at the facility must pay sales or use tax on their purchase of these items.
Other Personal Services
The following services are not taxable:
- Ear/body piercing
- Permanent makeup
- Shoeshine
- Tattoo
Product Sales
Products sold to a customer are taxable. You do not pay sales or use tax when you purchase these products. Instead, give your supplier a completed Form ST3, Certificate of Exemption. Specify the Resale exemption. Examples include:
- Aftercare package
- Jewelry
- Lotions
- Posters
Examples of Taxable and Nontaxable Purchases
Type of item being purchased
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Taxable or Not Taxable
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Examples
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- Consumable materials – items used while providing the service and are not reused afterward
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- Cleansing agents
- Cosmetic ink
- Numbing agents
- Pigment
- Shoe polish and shine kits
- SkinLock
- Stencils
- Tattoo ink and refill kits
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- Makeup machine/kits
- Piercing gun
- Tattoo chair
- Tattoo machine/kits
- Tubes, needles, and grips
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- Aprons
- Gloves
- Work clothes/uniforms
Note: General clothing items are not taxable. However, some clothing accessories and equipment are taxable. For more information, see Clothing. |
Taxable Purchases (Applies to All Personal Services)
Taxable purchases for all personal services are listed.
Sales of items you use in your trade or business are not taxable if:
- The sale is not made in the normal course of business
- The total amount from the sale or trade of business property during the calendar month of the sale and the preceding 11 calendar months does not exceed $1,000.
For more information, see Isolated and Occasional Sales.
Discount vouchers and group coupons, can be purchased online and then brought to the retailer for the discount. The purchase of a discount voucher is not taxable.
If the item (or service) is taxable, charge sales tax when the voucher or coupon is redeemed.
Note: The retailer’s records must support the tax calculation.
| Do you know how much the customer paid for the group discount voucher? |
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Charge sales tax on
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- Amount the customer paid for the discount voucher
- Face value of the discount voucher
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For more information, see Coupons, Discounts, and Other Forms of Payments.
Sourcing rules determine what state and local taxes apply to a retail sale of goods or services. Generally, services are sourced to the location where the purchaser does one of the following:
- Receives the service
- Makes first use of the service
Example
A massage therapist performs a massage in St. Paul. The therapist must charge Minnesota general sales tax, St. Paul, and Ramsey County Transit taxes on the massage.
If you buy, lease, or rent taxable items or services without paying sales tax to the seller, you owe use tax. Use tax is due on your cost of the item.
If you bring items into Minnesota or take items out of inventory for a taxable use, you may also owe use tax.
You must set up a system to record and pay use tax. For more information, see Use Tax for Businesses.
Certain services are taxable. Examples include:
- Building cleaning and maintenance
- Lawn and garden care services
- Laundry and dry cleaning services
Office equipment and supplies used in your business are taxable. Examples include:
- Cash registers
- Computers
- Furniture and fixtures
- Office accessories
- Prewritten computer software
Filing Returns and Record-Keeping
When filing your return, you must report all sales tax collected and use tax you owe.
When filing your return, you must report all sales tax collected and use tax you owe.
If you are not registered for sales and use tax, you must contact the Minnesota Department of Revenue and register to collect and report taxes. Call Business Registration at 651-282-5225 or 1-800-657-3605 (toll-free).
For more information, see Sales Tax Return Due Dates.
You must file a Sales and Use Tax return online through our e-Services system. For more information, see Filing Information.
It is important to keep good records to determine the correct amount of state and local tax you owe.
Your records should include:
- bills, receipts, invoices, cash-register tapes, and any other documents that support the entries in your books
- exemption certificates
- shipping documents
- worksheets used to prepare your tax returns
For more information, see the Personal Services – Sales Tax Fact Sheet & Industry Guide
