Minnesota Income Tax Brackets
The Minnesota Department of Revenue has announced the adjusted 2024 individual income tax brackets. Minnesota Income Tax Brackets have been recalibrated to account for inflation, preventing taxpayers from paying higher taxes due to changes in their income.
Minnesota’s income tax rates are among the highest in the country. Its state and local sales taxes are also high, as is its property tax. The state’s retirement income is partially taxed, and it’s one of the few states that impose a death tax. Minnesota Income Tax Brackets are adjusted annually to keep up with inflation. These adjustments are known as “indexing.” Indexing is required by law and first began in 1979. It helps prevent taxpayers from being bumped into a higher tax bracket simply because their costs have increased. This is called bracket creep.
Minnesota Income Tax Brackets 2024
| Income Range | Married Filing Jointly | Married Filing Separately | Head of Household | Single |
|---|---|---|---|---|
| Up to | 5.35% ($46,330) | 5.35% ($23,165) | 5.35% ($39,010) | 5.35% ($31,690) |
| $23,166 / $31,691 / $39,011 / $46,331 to $92,020 / $104,090 / $156,760 / $184,040 | 6.80% ($184,040) | 6.80% ($92,020) | 6.80% ($156,760) | 6.80% ($104,090) |
| $92,021 / $104,091 / $156,761 / $184,041 to $160,725 / $193,240 / $256,880 / $321,450 | 7.85% ($321,450) | 7.85% ($160,725) | 7.85% ($256,880) | 7.85% ($193,240) |
| Over | 9.85% ($321,450) | 9.85% ($160,725) | 9.85% ($256,880) | 9.85% ($193,240) |
Minnesota State Tax Rates
Minnesota Income Tax Brackets are adjusted annually to keep pace with inflation. The state has four income tax brackets and one estate tax bracket. It also levys a sales tax of 6.875 percent and allows local governments to add their own rates, which can be as high as 2.15 percent.
Minnesota taxes its residents on their gross pre-tax income, and like most states, it has a graduated rate system with percentages that increase based on income thresholds. The first $120,000 of taxable income is taxed 5.35 percent, the next $30,070 is taxed 6.80 percent, and the last $98,760 is taxed 7.85 percent.
The state offers several deductions for its residents, including a property tax rebate for seniors and a child and dependent care credit. It also has a cigarette and gasoline tax and a combined state and local sales tax that is the seventh highest in the country. The state does not tax military retirement pay or benefits issued through the Railroad Retirement Board. However, it does impose a capital gains tax.
