Minnesota – Taxable Sales and Purchases by Dentists


SALT Report 2113 – The Minnesota Department of Revenue updated their sales tax guidance regarding the sales and purchases made by dentists. Generally, dental services, including those performed by a general or specialized dentist, an orthodontist, a dental surgeon, or other licensed practitioner are not subject to sales or use tax.

Medical supplies purchased by a licensed dentist are exempt from tax if they are used directly on a patient as part of a treatment. This exemption applies to adhesive and non-adhesive bandages, gauze pads and strips, Q-tips, antiseptics, nonprescription drugs, and other similar supplies used directly on patients during a dental service.

Not all health care facilities, dental clinics, and offices will qualify as an exempt organization and therefore, are required to pay sales or use tax on the purchase, lease or rental of the following items:

  • Medical equipment, including disposable medical equipment and supplies,
  • Administrative supplies and equipment such as computers, software, furniture, safety equipment, toys and books,
  • Medical manuals, books, charts and pamphlets,
  • Laboratory supplies and equipment, and
  • Taxable services such as building and grounds cleaning and maintenance, laundry and paging services

The fact sheet provides a list of taxable and exempt items and discusses the taxability of prosthetic devices, drugs, medical records, and how to report tax to the Department.

For Further Information

Minnesota Department of Revenue – Sales Tax Fact Sheet #175


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