Moss, 34, dominated the list before the Australian pop star overtook her, but Minogue's fashion choices during the past 12 months have been too "outlandish" for many voters' tastes, a spokesman for the magazine said.
Behind Moss was British actress Sienna Miller in second place, followed by US actresses Scarlett Johansson, Rachel Bilson and Jennifer Aniston in third, fourth and fifth places respectively.
"Kate's back with a vengeance," said Jo Elvin, editor of Glamour, of the poll decided by Glamour readers. "Her maverick approach to fashion is an inspiration and shows us all how to be a little more daring and experimental."
Minogue's slide was partly blamed on her appearance on television talent show the X Factor wearing a figure-hugging lace catsuit that divided viewers and fashion watchers.
Topping the worst-dressed list in Glamour this year was U.S. singer Britney Spears. Former Spice Girl Victoria Beckham was voted ninth worst-dressed of 2008, but also came 10th in the best-dressed list.
