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State taxes: Minnesota

Tax Guide » State Taxes » U.S. Map » Minnesota

Minnesota has three state income tax rates: 5.35 percent, 7.05 percent and 7.85 percent. More on Minnesota taxes can be found in the tabbed pages below.

Personal income tax
  • Minnesota collects income taxes from its residents utilizing three tax brackets.

    For single taxpayers:
    -- 5.35 percent on the first $22,770 of taxable income.
    -- 7.05 percent on taxable income between $23,771 and $74,780. 
    -- 7.85 percent on taxable income of $74,781 and above.

    For married couples filing jointly:
    -- 5.35 percent on the first $33,280 of taxable income.
    -- 7.05 percent on taxable income between $33,281 and $132,220. 
    -- 7.85 percent on taxable income of $132,221 and above.
  • Residents of Minnesota must file state returns by April 15 or the next business day if that date falls on a weekend or holiday.
  • A complete list of all Minnesota taxes can be found on Minnesota's Revenue website.
Sales taxes
  • The sales tax in Minnesota increased on July 1, 2009 to 6.875 percent.
  • Minnesota's state tax department also administers sales tax for several local governments. Updates of local sales tax rates are posted on the state's Revenue website.
  • The state also imposes a use tax on items purchased elsewhere but used within Minnesota.
Personal and real property taxes
  • Each spring, Minnesota property owners get a property tax bill from their county. Three factors that affect the tax bill are the amount the local governments (town, city, county, etc.) spend to provide services to the community, the estimated market value of the property and the classification of the property (how it is used).
  • Each county property assessor determines the classification (home, apartment, cabin, farm, business) of all property according to its use. Each class of property is then taxed at a different percentage of its value. This percentage, or class rate, is determined by the state legislature.
  • Minnesota has two property tax refund programs for homeowners: the regular property tax refund and the special property tax refund. Taxpayers may be eligible for one or both, depending on income and the size of the property tax bill.
Inheritance and estate taxes
Other Minnesota tax facts
  • Individual income tax reciprocity between Minnesota and Wisconsin ended effective Jan. 1, 2010. As a result, Minnesota and Wisconsin residents who work across the border must file returns in both states for 2010 and beyond if they meet minimum filing requirements.
  • Taxpayers who have trouble resolving a tax issue with the Minnesota Department of Revenue and have exhausted all other administrative remedies should contact the state's Taxpayer Rights Advocate for help.
 
For more information, visit the Minnesota Department of Revenue website or call toll free (800) 652-9094.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.

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