Minnesota State Income Tax Guide (2026)
Minnesota has a top income tax rate of 9.85% — among the highest in the Midwest.
Top State Rate
9.8%
$100k Take-Home
$73,903
/year (single)
State Tax on $100k
$5,277
single filer
Minnesota Income Tax Brackets (2026)
| Marginal Rate | Taxable Income (Single Filer) |
|---|---|
| 5.35% | $0→$31,690 |
| 6.8% | $31,690→$104,090 |
| 7.85% | $104,090→$193,240 |
| 9.85% | Over $193,240 |
Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.
Standard deduction: $15,000 single / $30,000 married filing jointly
Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.
$100,000 Salary in Minnesota — Full Tax Breakdown
| Category | Annual | Monthly |
|---|---|---|
| Gross Salary | $100,000 | $8,333 |
| Federal Tax | −$13,170 | −$1,098 |
| FICA (SS + Medicare) | −$0.00 | −$0.00 |
| Minnesota State Tax | −$5,277 | −$440 |
| Take-Home Pay | $73,903 | $6,159 |
Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.
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- 1.Minnesota has a 4-bracket progressive structure (5.35% / 6.8% / 7.85% / 9.85%). The top 9.85% kicks in at $193,240 of single taxable income — meaningful for tech professionals, doctors, and partners.
- 2.Twin Cities economy is unusually deep for a Midwest metro — UnitedHealth, Target, 3M, US Bancorp, Best Buy, Medtronic, Ecolab all HQ here. Real comp scales accordingly.
- 3.MN partially taxes Social Security (one of the few remaining states). 2023 reforms expanded the SS subtraction — for 2026, single filers under $82K AGI / MFJ under $105K can fully exempt SS. Higher-income retirees pay MN tax on a portion.
- 4.Property tax averages ~1.0% — moderate. Twin Cities suburbs (Edina, Wayzata, Plymouth) higher; Greater MN lower. No estate tax above federal exemption.
- 5.MN has unusually generous K-12 education subtraction ($1,625 per K-6 child, $2,500 per 7-12 child) plus a separate Education Credit for lower-income filers. Worth claiming if you have kids in school.
Why you can trust these numbers
Numbers reflect 2026 IRS federal brackets, FICA caps, and current Minnesota Department of Revenue progressive brackets. The calculator at the top reflects this directly. For typical W-2 earners with no SS income, the calculator is within $100–$300 of your actual MN bill.
Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the official Form M1 Individual Income Tax Forms (MN Department of Revenue).
The brackets — fairly aggressive at the high end
Minnesota's progressive structure is among the more aggressive in the Midwest. Compared to neighbors: WI top 7.65% (kicks in at $304K), IL flat 4.95%, IA top 6%, IN flat 3.15%. MN's top rate of 9.85% above $193K is a meaningful jump from peers and catches a much larger swath of professionals than the 9%+ rates in CA, NY, or NJ (which kick in at $1M+).
Standard deduction matches federal closely ($15K single / $30K MFJ for 2026). Personal exemption was eliminated in 2018 federal conformity update. So MN taxable income is essentially federal taxable income for standard-deduction filers, then taxed through the brackets.
What you'll actually pay — two real-life scenarios
Two scenarios to anchor the math.
Illustrative — single filer, federal standard deduction, full-year MN residency, W-2 income. Two-earner MFJ households pay more FICA than the calculator shows. Ballparks, not invoices.
Scenario 1: Twin Cities healthcare professional, $90,000
| Federal income tax | ~$11,400 |
| Minnesota income tax | ~$4,650 |
| FICA (Social Security + Medicare) | ~$6,900 |
| Total income taxes | ~$22,950 |
| Annual take-home | ~$67,050 |
| Effective MN tax rate | ~5.2% |
Twin Cities healthcare worker — UnitedHealth, Mayo Clinic, Allina Health, HealthPartners, Children's Minnesota. Same comp in WI: ~$4,000 WI tax. Same in IL: ~$3,725. MN sits above its Midwest peers but is much cheaper than CA or NY. The strong job market in healthcare and finance partially compensates for the higher rate.
Scenario 2: Minneapolis tech professional, $180,000
| Federal income tax | ~$32,450 |
| Minnesota income tax | ~$11,400 |
| FICA | ~$13,800 |
| Total income taxes | ~$57,650 |
| Annual take-home | ~$122,350 |
| Effective MN tax rate | ~6.3% |
Minneapolis tech / corporate professional — Target HQ, Best Buy, US Bancorp, Code42, or one of the growing fintech operations. Same comp in WI: ~$8,800 WI tax. The MN-WI delta is real but not dramatic — about $2,600/year. The bigger driver of net financial picture is housing cost (Twin Cities meaningfully cheaper than Coastal alternatives) rather than the marginal MN-vs-WI tax delta.
Property tax + the SS taxation wrinkle
MN property tax effective rates by county (approximate): Hennepin (Minneapolis) 1.0–1.3%, Ramsey (St. Paul) 1.1–1.4%, Dakota 0.9–1.1%, Anoka 0.95–1.15%, Olmsted (Rochester) 1.0–1.2%, Greater MN rural 0.7–1.0%. Statewide average ~1.0% — moderate, near the national average.
MN Social Security taxation: 2023 reforms (Minnesota Tax Conformity Act) substantially expanded the subtraction. For 2026, single filers with AGI under $82K and MFJ under $105K can fully subtract their SS. Above those thresholds, a portion of SS becomes MN-taxable. This makes MN much friendlier to retirees than during 2018–2022.
Things financially comfortable Minnesotans actually do
- Max your 401(k) ($24,500 in 2026) — pre-tax for federal AND MN. At MN's 7.85%–9.85% top rate, this saves $1,800–$2,300/year in MN tax for high earners.
- Max your HSA if eligible — pre-tax for federal AND MN.
- Backdoor Roth IRA — fully legal.
- Mega backdoor Roth if your employer's 401(k) plan allows after-tax contributions.
- MNSAVES (529 plan) — MN offers a state-tax deduction up to $1,500 single / $3,000 MFJ for contributions to MN's 529. Modest but worth claiming.
- K-12 Education Subtraction — up to $1,625 per K-6 child / $2,500 per 7-12 child for qualified school expenses (tutoring, instructional materials, transportation, etc.). Often missed in self-prepared returns.
- K-12 Education Credit (income-tested) — for lower-income MN families, a refundable credit up to $1,500 per child for qualified expenses.
- SS subtraction optimization — for retirees near the AGI threshold ($82K single / $105K MFJ), small adjustments to retirement withdrawal timing can preserve the full SS subtraction.
Real questions people actually ask
Q: Does Minnesota really tax Social Security?
Partially. MN is one of about 10 states that retains some SS taxation, but the 2023 reforms (Minnesota Tax Conformity Act) expanded the subtraction significantly. For 2026, single filers under $82K AGI and MFJ under $105K can fully subtract SS from MN taxable income. Above those thresholds, the subtraction phases out. Most middle-income retirees end up paying $0 MN tax on SS. High-income retirees with $150K+ in non-SS income pay MN tax on most of their SS.
Q: How does MN compare to WI for tax?
MN's top rate (9.85%) is higher than WI's (7.65%), but MN's brackets are more compressed at the bottom. For a $80K single filer: MN ~$3,800, WI ~$3,300 — WI slightly cheaper. For a $200K single filer: MN ~$13,500, WI ~$10,500 — WI cheaper by ~$3,000. WI's lower top rate kicks in at much higher income ($304K), so WI generally beats MN at most income levels above ~$80K. But the metro economies differ: Twin Cities depth in Fortune 500 HQs is unusually strong.
Q: I work in MN but live in WI. Who taxes my income?
WI, under the MN-WI reciprocity agreement reinstated in 2024 (had been suspended for decades). As a WI resident working in MN, file Form MWR with your MN employer to ensure WI tax (not MN tax) is withheld. You file a WI resident return. This eliminates the prior need to file two state returns and claim a credit. Very welcome change for the Twin Cities-WI commuter population.
Q: What's the K-12 Education Subtraction?
MN allows a subtraction of up to $1,625 per K-6 child or $2,500 per 7-12 child for qualified educational expenses — including tutoring, music lessons (related to school), instructional materials beyond what schools provide, computer hardware/software, and transportation to school activities. Above a certain income, the subtraction shifts to a separate refundable credit. Documentation is required. Often missed by self-prepared returns; worth ~$80–$250 per child in MN tax saved at typical brackets.
Our honest opinion (which is just an opinion)
Minnesota is meaningfully more expensive than its Midwest peers tax-wise, but the trade-off is genuine — strong public services, well-funded schools, and one of the deepest professional job markets in the Midwest. The 2023 SS reforms removed a long-standing retiree pain point, making MN more competitive than it used to be.
The case for Minnesota:
- Strong economy with disproportionate Fortune 500 HQ density
- Standard deduction matches federal — meaningful conformity
- K-12 Education Subtraction is unusually generous
- 2023 SS reforms made retirement income meaningfully friendlier
- Reciprocity with WI for wage income (reinstated 2024)
- Cost of living significantly cheaper than coastal alternatives
- Strong public schools, parks, and cultural institutions
The case against:
- Top 9.85% rate kicks in at just $193K — catches more professionals than peer high-tax states
- MN partially taxes SS for higher-income retirees
- Property tax above national average in Twin Cities suburbs
- Winters are real and long
Honest take: if you're a Twin Cities professional under $200K, MN is moderate and the lifestyle dividend is real. Above $193K, the 9.85% top bracket is meaningful — comparable to NY or CA effective rates without the geographic premium of either coast. For retirees: post-2023 reforms make MN much more competitive than it was.
What now
Run your numbers in the calculator above. If you're a parent with school-age kids, claim the K-12 Education Subtraction on your MN return. If you're 65+ near the SS subtraction AGI threshold, talk to a CPA about retirement-income timing. The biggest tax mistake most Minnesotans make isn't paying too much MN tax — it's missing the K-12 subtraction or failing to optimize the SS subtraction at retirement.
Sources & further reading
A few honest notes
- Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney before making meaningful decisions.
- Tax law changes. This guide reflects 2026 IRS schedules and current MN Department of Revenue rules.
- The SS subtraction thresholds adjust annually for inflation — verify current limits.
- Property tax estimates vary by county and city — check your county assessor's website.
- The numbers are illustrative — scenarios don't include every credit, deduction, or wrinkle that might apply to you.
- No client relationship is created by reading this page.
Last updated April 2026 with 2026 IRS schedules and current MN Department of Revenue guidance.
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