Why is sales tax being collected on my non-taxable yarn sales in Minnesota?

Shopify Partner
1 0 0

Hello, I am located in Minnesota and sell yarn. According to the rules and regulations, yarn is not taxable in Minnesota. However, when I turn on tax collection, my sales made in Minnesota collect taxes on my yarn. I have the items listed correctly as yarn, so not sure what’s going on. 

Replies 2 (2)

Shopify Partner
40 1 9

Hello @KnittingLiz ,


You can try to follow these steps:

  1. Check your tax settings: Go to your Shopify -> Settings -> Taxes. Make sure that the tax settings are configured correctly for Minnesota. If you are unsure, you can reach out to Shopify support for assistance.
  2. Check your product tax classes: In your product settings-> "Tax" section and make sure that the "Tax class" is set to "None." If you have multiple tax classes set up, make sure that the yarn products are assigned to the correct tax class.
  3. Check your shipping tax settings: Go to Settings > Taxes > Shipping and make sure that the "Shipping rates" section is set up correctly for Minnesota.

Hope these will help you out. Let me know if you need any further support.



Jen from TrueProfit


TrueProfit - The Ultimate Real-time Profit Tracker For Shopify

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Shopify Partner
3 0 2

Hello we are experiencing the same issue but for apparel. We are based in PA and plan to sell apparel in many studies. We have all products categorized correctly and have our Tax Ids set up yet in some tax-exempt states the checkout prompts a sales tax collection. I'd love to not have to override everything. Help?