Minnesota has progressive income tax rates from 5.35% to 9.85% — making it one of the highest-tax states in the nation.
Minnesota Income Tax Rates for 2026
Single & Married Filing Separately
| Taxable Income | Tax Rate |
|---|---|
| $0 - $31,690 | 5.35% |
| $31,690 - $104,090 | 6.80% |
| $104,090 - $193,240 | 7.85% |
| Over $193,240 | 9.85% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $46,330 | 5.35% |
| $46,330 - $184,040 | 6.80% |
| $184,040 - $304,970 | 7.85% |
| Over $304,970 | 9.85% |
Head of Household
| Taxable Income | Tax Rate |
|---|---|
| $0 - $39,010 | 5.35% |
| $39,010 - $156,570 | 6.80% |
| $156,570 - $256,610 | 7.85% |
| Over $256,610 | 9.85% |
Minnesota Tax Calculator Examples
Example 1: $75,000 Single Filer
| Component | Calculation |
|---|---|
| Taxable income | $75,000 |
| Tax on first $31,690 | $1,695 |
| Tax on $31,690 - $75,000 | $2,945 |
| Total MN state tax | $4,640 |
| Effective rate | 6.19% |
Example 2: $150,000 Married Filing Jointly
| Component | Calculation |
|---|---|
| Taxable income | $150,000 |
| Tax on first $46,330 | $2,479 |
| Tax on $46,330 - $150,000 | $7,050 |
| Total MN state tax | $9,529 |
| Effective rate | 6.35% |
Minnesota Standard Deduction (2026)
| Filing Status | Standard Deduction |
|---|---|
| Single | $14,575 |
| Married Filing Jointly | $29,150 |
| Married Filing Separately | $14,575 |
| Head of Household | $21,900 |
Minnesota’s standard deduction matches the federal amounts.
Minnesota Tax Credits
Working Family Credit
Minnesota’s version of the Earned Income Tax Credit:
- Based on income and family size
- Refundable credit
- Phase-out at higher incomes
Child and Dependent Care Credit
| AGI Range | Credit Rate |
|---|---|
| Under $27,760 | 33.4% of federal credit |
| $27,760 - $61,000 | Gradually reduced |
| Over $61,000 | No credit |
K-12 Education Subtraction
- Up to $1,625 per qualifying child (K-6)
- Up to $2,500 per qualifying child (7-12)
- For tuition, textbooks, transportation
What Income is Taxed in Minnesota?
Taxed:
- Wages and salaries
- Self-employment income
- Interest and dividends
- Capital gains
- Retirement income (401k, IRA distributions)
- Rental income
- Business income
Not taxed:
- Social Security benefits (partially — see below)
- Municipal bond interest (MN bonds)
- Military retirement pay (limited exemption)
Social Security Taxation
Minnesota taxes Social Security benefits but provides a subtraction:
- Single filers: Full subtraction if federal AGI < $82,770
- MFJ: Full subtraction if federal AGI < $105,380
- Partial subtraction at higher incomes
Minnesota vs. Neighboring States
| State | Top Income Tax Rate |
|---|---|
| Minnesota | 9.85% |
| Wisconsin | 7.65% |
| Iowa | 5.7% |
| North Dakota | 2.5% |
| South Dakota | 0% (none) |
Minnesota has significantly higher income taxes than all neighbors.
Local Income Taxes
Minnesota does not have local income taxes. Only the state tax applies.
Filing Minnesota State Taxes
| Filing Requirement | Details |
|---|---|
| Form | M1 |
| Due date | April 15 (with federal) |
| E-file | Yes, through MN DOR |
| Extension | Automatic if federal extension filed |
Minnesota Property Tax
While not income tax, Minnesota’s property taxes are relevant:
- Average effective rate: 1.02% (above national average)
- Property Tax Refund programs available for low-income
Tips to Reduce Minnesota Taxes
- Max retirement contributions — 401(k), IRA reduce taxable income
- Use HSA — Triple tax advantage
- Itemize if beneficial — SALT, mortgage interest
- Claim education subtraction — K-12 expenses
- Working Family Credit — If income-eligible
- Municipal bonds — MN bonds are state tax-free
Is Minnesota Worth the High Taxes?
Pros:
- Excellent public schools
- Strong healthcare system
- Good infrastructure
- Low unemployment
- Quality of life
Cons:
- 5th highest marginal rate in US
- Cold winters
- Property taxes also above average
Minnesota Tax Authority
Minnesota Department of Revenue
- Website: revenue.state.mn.us
- Phone: 651-296-3781
- For refunds, returns, and questions
Bottom Line
Minnesota has progressive income tax rates from 5.35% to 9.85%, with the top rate applying to income over $193,240 (single) or $304,970 (married). While high compared to most states, Minnesota provides education tax credits and a Working Family Credit. High earners pay some of the highest state taxes in the country.