Soft Drinks and Other Beverages

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Soft Drinks

Soft drinks are taxable.

Soft drinks are nonalcoholic beverages that contain natural or artificial sweeteners.
- Natural and artificial sweeteners means an ingredient that adds a sugary sweetness to the taste of the food product.
Beverage powders and concentrates are not considered soft drinks.
Any beverage listed as exempt on this guide becomes taxable when it is served in a glass, cup, or pitcher. See Eating Establishments.

Taxability

To determine if a soft drink is taxable, you must review the product label.

Note: These lists are for reference only. They do not include all natural and artificial sweeteners or beverages.

Taxable Drinks

If the product label includes	Examples
Agave Aspartame Barley malt Corn syrup Dextrose Evaporated cane juice Fructose Fruit juice concentrate Honey Invert sugar Maltitol Molasses Rice syrup Saccharin Stevia Sucralose Sucrose Other artificial or natural sweeteners	Bottled or canned water that contains sweeteners Coffee and tea drinks that contain sweeteners Fruit-ades, drinks, or nectars that contain sweeteners and have 50% or less fruit juice or no fruit juice percent shown on label Kombucha tea Nonalcoholic beer or near beer (contains barley malt) Oral electrolyte drinks Sports drinks Soda pop Sparkling grape juice containing sweeteners and 50% or less fruit juice

If the product label includes

Examples

Agave
Aspartame
Barley malt
Corn syrup
Dextrose
Evaporated cane juice
Fructose
Fruit juice concentrate
Honey
Invert sugar
Maltitol
Molasses
Rice syrup
Saccharin
Stevia
Sucralose
Sucrose
Other artificial or natural sweeteners

Bottled or canned water that contains sweeteners
Coffee and tea drinks that contain sweeteners
Fruit-ades, drinks, or nectars that contain sweeteners and have 50% or less fruit juice or no fruit juice percent shown on label
Kombucha tea
Nonalcoholic beer or near beer (contains barley malt)
Oral electrolyte drinks
Sports drinks
Soda pop
Sparkling grape juice containing sweeteners and 50% or less fruit juice

Nontaxable Drinks

If the product label includes	Examples
Milk or milk products Soy, rice, or similar milk substitutes More than 50% vegetable or fruit juice by volume, even if they contain sweeteners No specific sweetener listed but lists natural flavor, essence, or spice	Apple cider Beverage powders or concentrates Bottled or canned water with no sweeteners Coffee beans or grounds and tea leaves Nutritional drinks that contain milk or milk substitutes Milk and drinks that contain milk

Bottled Water

Carbonated, non-carbonated, or flavored bottled water are generally not taxable, if no sweeteners are added.

Note: Bottled water is taxable when seller provides straws or other eating utensils. See Prepared Food.

Alcoholic Beverages

Alcoholic beverages are taxable. Alcoholic beverages contain 0.5% or more alcohol by volume. See Eating Establishments.

Nonalcoholic Beer

Nonalcoholic beer is a taxable soft drink because it contains sweeteners. These beverages are subject to the general sales tax rate and any applicable local taxes.

Ice

Ice cubes, crushed ice, and ice blocks are not taxable.

Dry ice is taxable.

Cannabis and Hemp Products

Cannabis and hemp products are taxable. See the Cannabis Guide.

Legal References and Resources

Minnesota Statutes

297A.61 Definitions
- subd. 32, Soft drinks
- subd. 34, Taxable food sold through vending machines

Minnesota Rules

8130.4700, Prepared Food, Candy, and Soft Drinks