Key Tax Facts: Minnesota
- Top rate of 9.85% on income above $183,341 (single) / $258,264 (joint)
- Social Security benefits may be partially taxable depending on income
- Working Family Credit available for low-to-moderate income earners
- No deduction for federal income taxes paid
Estimate Your 2026 Federal and Minnesota State Income Tax
Minnesota State Income Tax Overview
Minnesota has a graduated state income tax with four brackets ranging from 5.35% to 9.85% for 2025. Single filers enter the top 9.85% bracket on income above $183,340, making Minnesota one of the higher-tax states in the country. Minnesota provides a standard deduction equal to the federal standard deduction and also offers a dependent exemption credit. The state taxes a portion of Social Security income for higher-income residents, though lower-income retirees may qualify for a partial subtraction. Minnesota also offers education-related credits and a renter's property tax credit for qualifying residents.
What Is Different About Minnesota's Income Tax
Deductions and exemptions
Minnesota's standard deduction is $14,950 for single filers and $29,900 for joint filers for 2025, close to the federal amounts, and phases down above roughly $244,000 of income. Dependent exemptions of $5,300 apply. Itemizers can use federal amounts with state modifications, subject to the same phase-down.
Credits worth knowing
Minnesota's child tax credit of up to $1,750 per child, enacted in 2023, is one of the largest in the country and is fully refundable. The state also has a working family credit tied to earned income, a K-12 education credit and subtraction, a child and dependent care credit, and a property tax refund program for homeowners and renters.
Retirement, capital gains, and other income
Social Security is partially exempt through a subtraction that phases out above about $84,000 of income for single filers and $108,000 for joint filers. Public pensions from Minnesota and federal systems get a limited subtraction, and military retirement pay is fully exempt. Private pensions, 401(k), and IRA distributions and capital gains are taxed at the 5.35% to 9.85% brackets.
Rules summarized from the Minnesota Department of Revenue guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Minnesota Income Tax Brackets (Single Filers, 2026) projected
These are the Minnesota state income tax brackets for single filers. Married-filing-jointly brackets use wider income thresholds, carried forward from 2025 pending official 2026 figures. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $32,570 | 5.35% |
| $32,570 - $106,990 | 6.8% |
| $106,990 - $198,630 | 7.85% |
| Over $198,630 | 9.85% |
Source: Minnesota Department of Revenue. Brackets shown are for single filers; married-filing-jointly thresholds are wider.
What a Minnesota Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
Where Minnesota Stands Among the 50 States
Minnesota's top rate of 9.85% ranks #6 of the 41 states that tax wages -- among the ten highest in the country. The median top rate across those 41 states is 5.2%, so Minnesota is above the middle of the pack. It is one of 27 states with a graduated schedule, using 4 brackets; the top rate starts at $198,630 of taxable income, and the lowest bracket ends at $32,570.
On sales tax the picture is different: Minnesota's combined state and average local rate of 7.49% ranks #17 of 50, against a national median of 7.00%.
Minnesota State Tax at Five Income Levels (2026, single filer)
| Taxable income | Minnesota tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $2,248 | 5.62% | 6.8% |
| $65,000 | $3,948 | 6.07% | 6.8% |
| $100,000 | $6,328 | 6.33% | 6.8% |
| $150,000 | $10,179 | 6.79% | 7.85% |
| $250,000 | $19,057 | 7.62% | 9.85% |
Brackets applied directly to the taxable-income figure shown, before Minnesota-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Minnesota vs. Its Neighbors on $75,000 of Taxable Income
A Minnesota resident with $75,000 of taxable income pays about $4,628 in state income tax. Of Minnesota's 4 neighboring states, 4 would tax that income less and 0 would tax it more -- Minnesota is the most expensive state in its region on this measure.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Minnesota (you) | Graduated | $4,628 | 9.85% | 7.49% |
| South Dakota | No income tax | $0 | None | 6.11% |
| North Dakota | Rate to 2.5% | $517 | 2.5% | 6.96% |
| Iowa | Rate to 3.8% | $2,850 | 3.8% | 6.94% |
| Wisconsin | Rate to 7.65% | $3,579 | 7.65% | 5.43% |
Frequently Asked Questions -- Minnesota Income Tax
Does Minnesota have a state income tax?
Yes. Minnesota imposes a state income tax with a top marginal rate of 9.85%. This is separate from your federal income tax obligation.
What is the Minnesota income tax rate for 2026?
Minnesota uses a graduated income tax system with rates from 5.35% to 9.85%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Minnesota state tax return?
Most full-year Minnesota residents with income above the state filing threshold must file a state return. Check the Minnesota Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Minnesota figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Minnesota-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Minnesota Department of Revenue or a tax professional before filing.
How does Minnesota compare with nearby states?
On $75,000 of taxable income, Minnesota collects about $4,628. South Dakota collects $0, North Dakota collects $517, Iowa collects $2,850, Wisconsin collects $3,579. See the comparison table above.
Where does Minnesota rank on state income tax?
Minnesota's top rate of 9.85% ranks #6 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 7.49% ranks #17 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Minnesota rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Minnesota tax forms?
Official forms, instructions, and filing guidance are available at the Minnesota Department of Revenue.
What is the sales tax rate in Minnesota?
Minnesota's combined state and average local sales tax rate is 7.49%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Minnesota 2026 state taxes due?
2026 taxes are generally filed in 2027. The Minnesota filing deadline is April 15, 2027, the same as the federal deadline.
Understanding Your Minnesota Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Minnesota state tax owed to the Minnesota Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Minnesota Bill
Pre-tax retirement contributions reduce your federal and Minnesota taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Minnesota-specific credits and deductions that don't exist at the federal level are listed at the Minnesota Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Minnesota's combined state-plus-average-local sales tax rate is 7.49%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Minnesota Department of Revenue or a qualified tax professional for guidance specific to your situation.