Minnesota residents and businesses have to pay state income taxes and file a return if their income meets specific filing limits. The state uses a graduated income tax. This guide illustrates the tax brackets, who needs to file Minnesota taxes and more.

Minnesota personal income tax rates: Table

Minnesota has four tax rates for residents.

Minnesota personal income tax rates
Tax rate Single Married, filing jointly
5.35% $0-$27,230 $0-$39,810
6.80% $27,231-$89,440 $39,811-$158,140
7.85% $89,441-$166,040 $158,141-$276,200
9.85% $166,041 or more More than $276,201 or more
Source: Minnesota Department of Revenue

The state does offer deductions taxpayers can claim. Single filers can claim $12,525, and married joint filers can claim $25,050. Minnesota does not have exemptions for single or married taxpayers. You can receive a $4,350 exemption for every qualifying dependent.

Who has to file Minnesota state taxes?

Minnesota residents living in the state all year must file a return if their income exceeds the minimum requirements, outlined below. The same applies to those living in the state for part of the year. If you are a remote worker earning wages from a Minnesota company, you do not need to file a return.

If your income meets the following limits, you need to file a tax return:

  • $12,525 for single filers under 65.
  • $25,050 for married joint filers under 65.

You might file a tax return even if your income doesn’t meet the filing requirements in order to claim a refund of taxes paid or get a tax credit.

Meanwhile, companies must also file a tax return. The top tax rate for corporations is 9.8 percent, placing Minnesota 45th in the State Business Tax Climate Index Rating.

Minnesota sales tax rate: Table

Shopping in Minnesota means you will pay a lower sales tax rate than you would in many other states.

Minnesota sales tax rate
Sales tax rate National rank
6.875% 6
Source: Tax Foundation

Minnesota’s combined average sales tax rate consists of its state rate of 6.875 percent and average local rate of 0.58 percent.

Other things to know about Minnesota state taxes

When you shop for cigarettes or gasoline in Minnesota, they yield special taxes. The cigarette tax is $3.04 per 20-pack, making Minnesota the seventh most expensive state to buy cigarettes . Meanwhile, the gas tax is 28.6 cents per gallon.

For questions about tax liability, credits and more, the Minnesota Department of Revenue is an excellent resource. Companies and individuals can file and pay their taxes online. You can also check your status for a refund.

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