CURRENT RULEMinnesotaShop operations✓ Human reviewed

Are Minnesota repair labor and parts taxed as separate invoice lines?

Minnesota Department of Revenue says automotive and auto-body repair labor is not taxable when separately stated from repair parts on the invoice; repair parts sold to the customer are generally taxable. Body-shop painting materials have additional tax/purchase options, so shops should not blanket-classify every line as exempt.

Quick check

Separate nontaxable repair labor from generally taxable parts; verify paint and materials handling.

At a glance

JurisdictionMinnesota

TopicShop operations

VerifiedOct 15, 2026

Review cadenceWhen configuring invoices, new service items, and changing tax rules.

When this applies

Your Minnesota automotive service operation invoices repair labor, replacement parts, paint, or related materials.

Check that repair labor and parts have distinct invoice lines, sales tax is correctly handled on parts, and paint/materials are treated under a supported Minnesota method.

Official evidence

Source and verification

Official source: Minnesota Department of Revenue — Service Department Sales ↗
Verified: Oct 15, 2026
Applies to: General mechanical, Collision / body, Tire shop, Transmission, Mobile repair, Mixed services, Dealership fixed ops, Other

Quick-reference compliance planning only; not legal advice or an exhaustive statement of every applicable Federal, state, or local rule. Always verify the official source.

Are Minnesota repair labor and parts taxed as separate invoice lines?

Your Minnesota automotive service operation invoices repair labor, replacement parts, paint, or related materials.

Source and verification

Related Minnesota changes