Minnesota Tax Guide
9.85%top marginal rate
Minnesota has one of the highest income tax rates in the nation at 9.85%. The state also levies an estate tax. Property taxes are near the national average. Despite the high tax burden, Minnesota consistently ranks among the top states for quality of life.
Minnesota Tax at a Glance
Income Tax
9.85%
Top marginal rate
Sales Tax
6.875%
State-level rate
Property Tax
1.12%
Near the national average for property tax
Estate Tax
Yes
State-level estate/inheritance tax
How Minnesota Compares to the National Average
Notable Tax Facts
- Top income tax rate of 9.85% is the fifth highest in the nation
- Has a state estate tax with a $3 million exemption
- Despite high taxes, consistently ranks among top 10 states for quality of life
- One of the few states that taxes Social Security benefits (above certain income levels)
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Minnesota Tax FAQ
What is Minnesota's income tax rate?
Minnesota has a progressive income tax with four brackets: 5.35%, 6.8%, 7.85%, and 9.85%. The top rate applies to income over $193,240 for single filers.
Does Minnesota tax Social Security?
Minnesota has been phasing out its Social Security tax. As of 2024-2025, the state provides increasing subtractions, moving toward full exemption.
Does Minnesota have an estate tax?
Yes. Minnesota has an estate tax with a $3 million exemption. This is well below the federal exemption, catching many upper-middle-class families.
Is Minnesota worth the high taxes?
Minnesota consistently ranks among the top 10 states for quality of life, education, healthcare, and infrastructure. Many residents view the higher taxes as paying for excellent public services.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.