Sales tax on labor in Minnesota: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in Minnesota

It depends. Repair labor that restores a thing is not taxed when it is listed separately from the parts; tax goes on the parts. What it turns on: whether repair labor is separately stated from parts; if not, whether the parts cost is significant compared with the total.

• “Repair labor restores an item so it can be used for its original purpose. Repair labor is not taxable as long as the labor charges are separately stated from parts or materials on the customer bill or invoice.” — Minnesota Sales Tax Fact Sheet 152: Labor – Installation, Fabrication, Construction, and Repair, page date: Revised August 2016

Repairing a home or building in Minnesota

Not taxed. Repairing items attached to a building (furnaces, water heaters, built-in dishwashers, central air, plumbing, wiring) is construction labor and is not taxed. The contractor pays tax on materials and must not add sales tax to the invoice. Watch out: building cleaning and maintenance services (window washing, gutter cleaning, furnace cleaning and janitorial) are taxable services in Minnesota.

• “Labor to repair items attached to real property is construction labor.” — Minnesota Sales Tax Fact Sheet 152, page date: Revised August 2016
• “You must pay sales and use tax on the cost of all materials, supplies, and equipment used to complete a construction contract. ... You're improving real property when you: Repair, replace, or incorporate items such as furnaces, garbage disposals, built-in dishwashers and stovetops, water heaters, and central air conditioners Work on plumbing or electrical wiring ... Do not charge sales tax on construction contracts.” — Minnesota Revenue: Contractors and Other Property Installers Industry Guide (General Contractors and Subcontractors), page date: Last updated June 18, 2024
• “Building cleaning and maintenance includes both interior and exterior cleaning of commercial and residential buildings, homes, and apartments. It does not include repairs to buildings. Note: Contracts that include taxable and nontaxable services are taxed on the full amount unless the nontaxable services are separately stated.” — Minnesota Revenue: Building Cleaning and Maintenance, page date: Last updated June 29, 2026

Installation work in Minnesota

It depends. Installing something into a building (permanently attached, such as a water heater, furnace and windows) is not taxed. Installing a taxable item that stays personal property is taxed, even if the installation charge is listed separately. What it turns on: whether the item becomes part of the real property (not taxed) or stays a taxable item (installation taxed even if separately stated)

• “If the item being sold is taxable, charges to install it are also taxable. Installation charges are part of the sales price of the item, even if separately stated. ... Labor to install tangible personal property into real property is not taxable.” — Minnesota Sales Tax Fact Sheet 152, page date: Revised August 2016
• “Labor to permanently attach an item to real property is construction labor, which is not taxable because it is an improvement to real property.” — Minnesota Sales Tax Fact Sheet 152, page date: Revised August 2016

New construction in Minnesota

Not taxed. Construction labor is not taxed. The contractor pays sales or use tax on all materials, supplies and equipment when buying them.

• “Labor to permanently attach an item to real property is construction labor, which is not taxable because it is an improvement to real property.” — Minnesota Sales Tax Fact Sheet 152, page date: Revised August 2016
• “You must pay sales and use tax on the cost of all materials, supplies, and equipment used to complete a construction contract. ... You're improving real property when you: Repair, replace, or incorporate items such as furnaces, garbage disposals, built-in dishwashers and stovetops, water heaters, and central air conditioners Work on plumbing or electrical wiring ... Do not charge sales tax on construction contracts.” — Minnesota Revenue: Contractors and Other Property Installers Industry Guide (General Contractors and Subcontractors), page date: Last updated June 18, 2024
• “Construction labor is not taxable.” — Minnesota Revenue: Contractors guide (Construction Labor), page date: Last updated October 18, 2021

Listing labor separately on the bill in Minnesota

It depends. For installing a taxable item, separate listing does not help: installation is part of the item's price. For a contract mixing taxable services (like cleaning) with non-taxable ones, the non-taxable part must be listed separately or the whole is taxed.

• “Repair labor restores an item so it can be used for its original purpose. Repair labor is not taxable as long as the labor charges are separately stated from parts or materials on the customer bill or invoice.” — Minnesota Sales Tax Fact Sheet 152: Labor – Installation, Fabrication, Construction, and Repair, page date: Revised August 2016
• “If the item being sold is taxable, charges to install it are also taxable. Installation charges are part of the sales price of the item, even if separately stated. ... Labor to install tangible personal property into real property is not taxable.” — Minnesota Sales Tax Fact Sheet 152, page date: Revised August 2016
• “Building cleaning and maintenance includes both interior and exterior cleaning of commercial and residential buildings, homes, and apartments. It does not include repairs to buildings. Note: Contracts that include taxable and nontaxable services are taxed on the full amount unless the nontaxable services are separately stated.” — Minnesota Revenue: Building Cleaning and Maintenance, page date: Last updated June 29, 2026
• “Repair labor is not taxable as long as the labor charges are separately stated from parts or materials on the customer bill or invoice. ... Installation charges are part of the sales price of the item, even if separately stated.” — Minnesota Sales Tax Fact Sheet 152: Labor – Installation, Fabrication, Construction, and Repair, page date: Revised August 2016

Materials on jobs in Minnesota

Contractor is the consumer: use tax on all materials, supplies and equipment for a construction contract.

• “You must pay sales and use tax on the cost of all materials, supplies, and equipment used to complete a construction contract. ... You're improving real property when you: Repair, replace, or incorporate items such as furnaces, garbage disposals, built-in dishwashers and stovetops, water heaters, and central air conditioners Work on plumbing or electrical wiring ... Do not charge sales tax on construction contracts.” — Minnesota Revenue: Contractors and Other Property Installers Industry Guide (General Contractors and Subcontractors), page date: Last updated June 18, 2024

Trade services Minnesota taxes

The services Minnesota's own pages name as taxed, each in the page's words:

• Residential, building maintenance and pest control: “building and residential cleaning, maintenance, and disinfecting services and pest control and exterminating services”
• Lawn care, garden and tree: “lawn care, fertilizing, mowing, spraying and sprigging services; garden planting and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant care; tree, bush, shrub, and stump removal”
• Carpet and upholstery cleaning: “carpet, drapery, upholstery, and industrial cleaning”
• Window washing, gutter cleaning and furnace cleaning: “Furnace cleaning | Gutter cleaning | Janitorial services | ... | Ventilation system cleaning | Window washing”
• Security and alarm services: “detective, security, burglar, fire alarm, and armored car services”

Where Minnesota's list of services comes from

• “Building cleaning and maintenance includes both interior and exterior cleaning of commercial and residential buildings, homes, and apartments. It does not include repairs to buildings. Note: Contracts that include taxable and nontaxable services are taxed on the full amount unless the nontaxable services are separately stated.” — Minnesota Revenue: Building Cleaning and Maintenance, page date: Last updated June 29, 2026
• “(iii) building and residential cleaning, maintenance, and disinfecting services and pest control and exterminating services; ... (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery” — Minn. Stat. 297A.61 (2026 Minnesota Statutes), taxable services, page date: 2026 Minnesota Statutes

What was not checked for Minnesota

• Minnesota's Fact Sheet 152 is the August 2016 revision, still the one the department's contractor guide links to.

Check with the Minnesota Department of Revenue

Before you bill: check with the Minnesota Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Minnesota with every state's answer, or with its neighbours just below.

Next door to Minnesota

• Iowa: home repair depends, installation depends
• North Dakota: home repair not taxed, installation not taxed
• South Dakota: home repair taxed, installation depends
• Wisconsin: home repair depends, installation depends

Official sources for Minnesota

• Minnesota Sales Tax Fact Sheet 152: Labor – Installation, Fabrication, Construction, and Repair — Revised August 2016
• Minnesota Revenue: Contractors guide (Construction Labor) — Last updated October 18, 2021
• Minnesota Revenue: Building Cleaning and Maintenance — Last updated June 29, 2026
• Minn. Stat. 297A.61 (2026 Minnesota Statutes), taxable services — 2026 Minnesota Statutes

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