Candy

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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.

Examples of taxable candy include:
•    Almond bark
•    Breath mints
•    Breakfast and nutrition bars without flour
•    Candy bars
•    Caramel apples
•    Caramel corn
•    Chocolate chips
•    Chocolate-coated potato chips
•    Chocolate or carob covered raisins, nuts, etc.
•    Gum
•    Fruit roll-ups
•    Honey roasted and honey coated nuts, beer nuts
•    Marshmallows
•    Peanut brittle
•    Sugarless candy
•    Sweet or semi-sweet cooking bars or chips
•    Yogurt covered raisins, nuts, etc.

Items that Are Not Candy

An item it is not considered candy if the product contains flour or requires refrigeration.

Flour

When an item has flour listed on the ingredient label, it is not considered candy and is not taxable.

Examples of flour include, but are not limited to:
•    Brown flour
•    Corn flour
•    Rice flour
•    White flour
•    Whole wheat flour

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, and are not taxable. These items are taxable if they are prepared food. See Prepared Food.

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

Cotton Candy

Cotton candy is not considered candy because it is not sold in the form of bars, drops, or pieces. Cotton candy is taxable when prepared by the seller.

Vending Machine Sales

Candy sold through vending machines is taxable. See Vending Machines and Other Coin-Operated Devices.

Edible Cannabinoid Products

Edible cannabinoid products are subject to:
•    10% Cannabis Tax
•    6.875% state general rate sales tax
•    Any applicable local sales taxes based on where the transaction takes place

For more information, visit our Cannabis Tax page.

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

Legal References

Minnesota Statutes

297A.61, Definitions

Minnesota Rules

8130.4700, Prepared Food, Candy, and Soft Drinks