How much is Minnesota income tax?
Minnesota income tax at 3 levels of Minnesota taxable income — what is left after Minnesota's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $2,9175.8% effective · 6.8% marginal | $2,6945.4% effective · 6.8% marginal |
| $100,000 | $6,3176.3% effective · 6.8% marginal | $6,0946.1% effective · 6.8% marginal |
| $250,000 | $18,9307.6% effective · 9.85% marginal | $16,8876.8% effective · 7.85% marginal |
What are Minnesota's income tax brackets for 2026?
| Taxable income | Rate |
|---|---|
| Up to $33,310 | 5.35% |
| Over $33,310 up to $109,430 | 6.8% |
| Over $109,430 up to $203,150 | 7.85% |
| Over $203,150 | 9.85% |
| Taxable income | Rate |
|---|---|
| Up to $48,700 | 5.35% |
| Over $48,700 up to $193,480 | 6.8% |
| Over $193,480 up to $337,930 | 7.85% |
| Over $337,930 | 9.85% |
Source: MN DOR — Income Tax Rates for 2026 (all four statuses) + the TY2026 inflation-adjusted-amounts release, checked September 12, 2026.
Can you deduct Minnesota income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Minnesota taxable income owes about $18,930 in Minnesota income tax — 47% of that cap before any property tax.
SALT cap workaroundsDoes Minnesota have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Minnesota income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim a Minnesota credit or exclusion for it. Deductsy's plan treats March 15 as the Minnesota election or first-payment deadline; it is approximate, so confirm it with Minnesota before relying on it.
PTET savings calculatorAre HSA contributions deductible in Minnesota?
Yes. Minnesota follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Minnesota taxable income as well as federal.
Does Minnesota give a tax break for 529 plan contributions?
Yes, and Minnesota lets you choose: a state income-tax deduction or a credit for contributions to any state's 529 plan, whichever is worth more to you. Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorDoes Minnesota take a disability or paid-leave tax out of paychecks?
Yes. Minnesota employees pay MN Paid Leave through payroll: 0.44% of wages for 2026, on wages up to $184,500. It comes out on top of federal payroll taxes and Minnesota income tax withholding.
Which states have tax reciprocity with Minnesota?
Minnesota has mutual agreements with Michigan and North Dakota: neither state taxes the other's residents on wages earned there, so those wages are taxed only where you live. Give your employer the exemption certificate and the state you work in stops withholding.
What is the property tax rate in Minnesota?
Minnesota's average effective property tax rate is 1.02% — tied for the 19th highest of 51 jurisdictions and 1.1 times the national average of 0.9%. That is about $1,020 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Minnesota each year?
Deductsy's table has no annual report fee or minimum franchise tax for a Minnesota LLC. Fees change, so confirm with Minnesota's business filing office.
Minnesota S-corp tax calculatorHow do Minnesota taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Minnesota | 9.85% | $6,317 | 1.02% |
| Iowa | 3.8% | $3,800 | 1.39% |
| North Dakota | 2.5% | $983 | 0.99% |
| South Dakota | None | $0 | 1.06% |
| Wisconsin | 7.65% | $4,696 | 1.42% |
On $100,000 of taxable income a single filer's Minnesota income tax is $6,317 — more than in all 4 neighboring states. The lowest is South Dakota at $0; the highest is Wisconsin at $4,696. Minnesota's average property tax rate is higher than in 1 of 4.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
Tax moves that matter most for Minnesota
If you own an S corporation, partnership or multi-member LLC, Minnesota's PTET election moves the Minnesota income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Minnesota calculator adds Minnesota's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Minnesota income tax.
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