Minnesota state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | Four graduated rates for 2026: 5.35%, 6.80%, 7.85% and 9.85%, with bracket amounts that depend on filing status. A 1% surtax applies to net investment income above $1 million. Verify current-year figures. |
| Tax agency | Minnesota Department of Revenue |
| Main individual return | Form M1 (all individual filers) with Schedule M1M for additions and subtractions |
| Local income taxes | No local income taxes. |
| Sales tax | A 6.875% state rate plus local rates in some cities and counties. Clothing and most groceries are exempt from the state sales tax. |
| Property tax | Billed by counties and local governments. Minnesota offers a Property Tax Refund (Form M1PR) for eligible homeowners and renters, claimed after the end of the year. |
| Retirement & Social Security | Minnesota taxes Social Security only above income thresholds: for 2026 a full subtraction is available at AGI of $86,410 or less (single) or $110,780 or less (joint), phasing out above that. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Minnesota Department of Revenue website.
How Minnesota income tax works
Minnesota’s Department of Revenue lists four individual income tax rates for 2026: 5.35%, 6.80%, 7.85% and 9.85%. The bracket amounts depend on your filing status, and the standard deduction is phased down at higher incomes. Tax Foundation’s table shows the 5.35% bracket extending to about $33,300 for single filers and $48,700 for joint filers, the 6.80% bracket to about $109,400 (single), the 7.85% bracket to about $203,200 (single), and 9.85% above that, with a separate 1% surtax on net investment income above $1 million. Minnesota’s brackets are indexed to inflation each year.
Social Security is one place where Minnesota differs from many neighbors. The state taxes benefits that are included in federal AGI unless you qualify for a subtraction. For tax year 2026, the Department’s M1M instructions describe a full subtraction at AGI up to $86,410 (single or head of household) or $110,780 (joint), with the subtraction phasing down above those amounts (and an alternative method based on provisional income that may give a larger subtraction). Many retirees qualify for the full subtraction; read the M1M instructions if your income is near the limit. For the federal rules, see is Social Security taxable?
Minnesota also pairs the income tax with refundable credits that matter for families, including a Working Family Credit and a Child Tax Credit, and with a Property Tax Refund for eligible homeowners and renters. Because these credits depend on income and household size, use the Department’s current-year instructions and calculators. Minnesota’s sales tax exempts clothing and most groceries from the state tax, and the state’s paid family and medical leave premiums are deducted from paychecks separately from income tax.
Filing your Minnesota return and free options
You can file Form M1 electronically or by mail. The Department says free e-filing may be available if your income is $89,000 or less, with provider-specific eligibility limits; start from the Department’s free-electronic-filing page so your state return is included without a fee. Minnesota’s online account system, e-Services, is used for payments, refund status and correspondence. If you claim the Social Security subtraction, complete Schedule M1M, line 14.
Minnesota reciprocity: Tax Foundation lists agreements with Michigan and North Dakota, so residents of those states who work in Minnesota generally owe tax only at home. See our free filing hub for the federal side, and state refund status for tracking.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Minnesota residents often ask about
- Social Security subtraction: a full subtraction applies at or below AGI of $86,410 (single) or $110,780 (joint) for 2026, phasing down above.
- Investment income surtax: 1% on net investment income above $1 million.
- Refundable family credits: the Working Family Credit and Child Tax Credit can produce a refund even if you owe no tax.
- Property Tax Refund (M1PR): claimed separately for eligible homeowners and renters.
- Reciprocity: Michigan and North Dakota residents working in Minnesota generally file only at home.
Official Minnesota links
- Minnesota Department of Revenue
- Minnesota: free electronic filing
- Minnesota: income tax rates and brackets
- Minnesota: Social Security benefit subtraction
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What are Minnesota’s income tax rates?
For 2026: 5.35%, 6.80%, 7.85% and 9.85%, with bracket amounts that depend on filing status. A 1% surtax applies to net investment income above $1 million.
Does Minnesota tax Social Security?
Only above income limits. For 2026 the Department’s simplified subtraction is full at AGI up to $86,410 (single) or $110,780 (joint) and phases down above that.
Can I file Minnesota taxes for free?
The Department says free e-filing may be available for filers with income of $89,000 or less, with provider-specific rules.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.