Minnesota State Income Tax Guide (2026)
Minnesota's 9.85% top state rate kicks in at $203,150 of single taxable income — one of the more aggressive thresholds for a high top rate in the country. The combination of 4 progressive brackets, a $3M state estate tax exemption, and partial Social Security taxation makes MN appreciably more expensive than its Midwest peers. The offsets: Twin Cities Fortune 500 density (UnitedHealth, Target, 3M, US Bancorp, Best Buy, Medtronic, Ecolab, General Mills), the K-12 Education Subtraction, and the 2023 expansion of the SS subtraction. (There is no MN-WI reciprocity — that agreement ended in 2010.)
Top State Rate
9.85%
$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→$33,310 |
| 6.8% | $33,310→$109,430 |
| 7.85% | $109,430→$203,150 |
| 9.85% | $203,150→Above $203,150 |
Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — noticeably lower than your top marginal rate.
Standard deduction: $15,300 single / $30,600 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.
Want exact numbers for your situation?
The dedicated Minnesota paycheck calculator lets you adjust salary, filing status (single, MFJ, HOH, MFS), 401(k) and HSA contributions, dependents for your exact 2026 take-home figure.
The 30-second version
- 1.MN has 4 progressive brackets: 5.35% / 6.8% / 7.85% / 9.85%. The 9.85% top kicks in at $203,150 of single taxable income — among the more aggressive thresholds for a high top rate in the country, dramatically earlier than CA (13.3% at $1M+) or NY (10.9% at $25M+). Minnesota sets its own standard deduction, $15,300 single / $30,600 for 2026, below the federal $16,100 / $32,200.
- 2.Twin Cities economy is unusually deep for a Midwest metro. UnitedHealth Group (Minnetonka — Fortune #5), Target (Minneapolis), 3M (Maplewood), US Bancorp, Best Buy (Richfield), Medtronic, Ecolab, General Mills (Golden Valley), Cargill (private, Wayzata), Land O'Lakes, Polaris, Securian Financial all headquartered here. The job market depth partially offsets the higher tax rates.
- 3.MN partially taxes Social Security — one of a handful of states that still do. The 2023 omnibus tax law expanded the SS subtraction dramatically: for 2026, single filers under $86,410 and under $110,780 can fully exempt SS. Higher-income retirees pay MN tax on a portion. This is the structural reform that moved MN from retirement-unfriendly toward moderate over the past two years.
- 4.No MN-WI reciprocity: Minnesota and Wisconsin have had no reciprocity agreement since January 1, 2010; Minnesota's agreements cover Michigan and North Dakota residents only (MN DOR). A Wisconsin resident working in the Twin Cities has Minnesota tax withheld and files a Minnesota nonresident return; a Minnesota resident working in Wisconsin pays Wisconsin tax and claims Minnesota's credit for tax paid to another state. Form MWR is for Michigan and North Dakota residents only.
- 5.State estate tax with $3M exemption — much lower than federal $15M+ under . MN-resident estates between $3M and $15M owe state estate tax even though they escape federal. Rates 13-16% above the threshold. Real HNW consideration, especially compared to WI (no estate tax) and ND/SD/IA (no estate tax).
- 6.K-12 Education Subtraction is unusually generous — up to $1,625 per K-6 child / $2,500 per 7-12 child for qualified school expenses (tutoring, instructional materials, transportation, music lessons related to school). Plus a separate K-12 Education Credit for lower-income filers. Often missed on self-prepared returns.
A quick hello before we start
Whether you're reading this from a Surly Brewing patio, the Minnesota State Fair butter-cow line, or somewhere on the North Shore with the loons calling — this is the last MN-tax page you should need this year. Nothing here is personal tax, legal, or financial advice. Your situation has wrinkles only your CPA can iron out — treat this like a thoughtful friend over a Surly Furious, not your accountant.
Last reviewed: October 2026 · Reviewed annually each January when new brackets publish
Why you can trust these numbers
Numbers reflect 2026 IRS federal brackets per Rev. Proc. 2025-32, caps per the SSA October 2025 notice, and the current Minnesota Department of Revenue progressive bracket schedule (5.35% / 6.8% / 7.85% / 9.85%). The calculator at the top models the full MN bracket schedule. Minnesota's own standard deduction, indexed separately from the federal figure under Minn. Stat. 290.0123: $15,300 single / $30,600 / $23,000 head of household for 2026, against the federal $16,100 / $32,200.
The calculator models wages, Minnesota's $5,300 dependent exemption and the bracket schedule. It does not model Social Security or other retirement income (so not the SS subtraction, whose 2026 full-exemption thresholds are $86,410 single / $110,780 ), the K-12 Education Subtraction or credit, the Minnesota Child Tax Credit, or the estate tax — add those manually. Reviewed annually each January.
Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the official Minnesota Department of Revenue - 2026 income tax brackets, standard deduction and dependent exemption amounts, and the enacting legislation MN Paid Leave Act (2023, effective Jan 2026) — 0.7% combined premium.
The brackets — aggressive thresholds for a high top rate
Minnesota's progressive structure is among the more aggressive in the Midwest at the high end. The top 9.85% rate kicks in at $203,150 of single taxable income ($337,930 ) — a meaningful jump from peers and dramatically earlier than the 9%+ rates in CA (13.3% at $1M+), NY (10.9% at $25M+), or NJ (10.75% at $1M+). MN's 7.85% bracket runs from $109,430 to $203,150, which is where many upper-middle Twin Cities professionals actually pay.
Compared to direct Midwest neighbors: WI top 7.65% kicks in at $332,720, IL flat 4.95%, IA flat 3.8% (post-HF 2317), IN flat 2.95%. MN sits well above its peers at most professional income levels. The structural offset is the unusually deep Twin Cities Fortune 500 cluster, which generally pays compensation premiums of 5-15% versus peer Midwest metros for equivalent professional roles.
Minnesota sets its own standard deduction under Minn. Stat. 290.0123 and indexes it separately from the federal one: $15,300 single / $30,600 / $23,000 head of household for 2026, against the federal $16,100 / $32,200. It is close enough to look like conformity and is not conformity — a single filer's MN taxable income runs $800 above federal on the deduction alone, and the two figures drift apart a little further every year. It also phases out for high earners, starting at $244,400 of income. There is no exemption for the filer or spouse, but Minnesota allows a $5,300 dependent exemption per dependent for 2026 (Minn. Stat. 290.0121), reduced 2 percentage points per $2,500 of federal above $244,500 single / $366,700 joint. Beyond the deduction and exemption there are no state-specific add-backs of consequence for most workers.
No MN-WI reciprocity + the Fortune 500 cluster
Minnesota has wage reciprocity with Michigan and North Dakota only (MN DOR). The Minnesota-Wisconsin agreement ended on January 1, 2010 and has not been restored; some summaries describe a 2024 restoration, but neither state's revenue department lists one. So the Hudson WI, River Falls WI, Somerset WI and St. Croix Falls WI commuter belt still files two state returns.
How the commute works today: a Wisconsin resident working in Minnesota has Minnesota tax withheld, files a Minnesota nonresident return, and claims Wisconsin's credit for net tax paid to Minnesota — so the household ends up paying roughly Minnesota's (higher) tax. A Minnesota resident working in Wisconsin pays Wisconsin tax on those wages and claims Minnesota's credit for tax paid to another state. Form MWR, often cited for this, is Minnesota's exemption form for Michigan and North Dakota residents only. For Fargo-Moorhead and Michigan-border workers the reciprocity is real: they file MWR and only their home state taxes the wages.
The Twin Cities Fortune 500 density is the structural anchor that makes MN's high rates more bearable than they otherwise would be. UnitedHealth Group (Fortune #5, ~400K employees), Target (Fortune #36), 3M (Fortune #103), US Bancorp, Best Buy, Medtronic, Ecolab, General Mills, Hormel (Austin MN), Cargill (private — would rank top-10 if public), Land O'Lakes, Polaris, Securian Financial, Travelers. Plus the Mayo Clinic system in Rochester. Compensation in MN-based roles generally runs 5-15% higher than equivalent positions in Cleveland, Indianapolis, or Kansas City for the same level — which materially offsets the higher state tax bite.
What you'll actually pay — four real-life scenarios
Four scenarios that cover most readers. Find the one closest to you. If none match, the calculator at the top is for you.
Illustrative numbers — single filer unless noted, Minnesota's own standard deduction (not the federal one), full-year MN residency, W-2 income unless specified. Two-earner MFJ households pay more FICA than the calculator shows because each spouse has their own Social Security cap. Ballparks, not invoices.
Scenario 1: Rochester Mayo Clinic professional, $85,000
| Federal income tax | ~$9,870 |
| Minnesota state income tax | ~$4,257 |
| FICA (Social Security + Medicare) | ~$6,503 |
| Total taxes | ~$20,629 |
| Annual take-home | ~$64,371 |
| Effective MN tax rate | ~5.0% |
Mayo Clinic mid-career professional — nurse, advanced practitioner, lab tech, research staff, or administrative coordinator. Rochester is functionally a one-employer town (Mayo employs roughly one in three working-age Rochester residents). Same comp in WI: ~$3,574 WI tax — WI saves about $680. Same in IA (3.8% flat post-HF 2317): ~$2,618 — IA saves about $1,640. MN's higher rate is the structural cost of Mayo's location, partially compensated by lower Rochester housing (median home ~$280K vs Twin Cities suburbs $400K+). The healthcare-cluster job market depth is real even at the smaller Rochester scale.
Scenario 2: Twin Cities healthcare professional, $105,000
| Federal income tax | ~$14,270 |
| Minnesota state income tax | ~$5,617 |
| FICA (Social Security + Medicare) | ~$8,033 |
| Total taxes | ~$27,919 |
| Annual take-home | ~$77,081 |
| Effective MN tax rate | ~5.3% |
Twin Cities healthcare professional — UnitedHealth Group corporate, Allina Health, HealthPartners, Children's Minnesota, M Health Fairview, or one of the dozens of large medical practices. Same comp in WI: ~$4,761 — WI saves about $855. Same in IL: ~$5,053 — IL saves about $565. MN sits appreciably above its Midwest peers at this comp tier, but the Twin Cities healthcare cluster (anchored by UnitedHealth's massive corporate presence and the multi-system competition) commands wages 8-12% above equivalent roles in lower-tax Midwest metros. The wage premium roughly offsets the MN tax delta.
Scenario 3: Minneapolis tech / corporate professional, $175,000
| Federal income tax | ~$30,734 |
| Minnesota state income tax | ~$10,904 |
| FICA (Social Security + Medicare) | ~$13,388 |
| Total taxes | ~$55,026 |
| Annual take-home | ~$119,974 |
| Effective MN tax rate | ~6.2% |
Target HQ senior, Best Buy corporate, US Bancorp senior, Code42, Workday Minneapolis, or one of the growing Twin Cities fintech and SaaS operations. At this comp tier the bulk of income is in MN's 7.85% bracket, and none of it reaches 9.85% — that bracket starts at $203,150 of taxable income, roughly $218,000 of gross. Same comp in WI: ~$8,671 — WI saves about $2,233. Same in CA (Bay Area peer): ~$12,030 of income tax plus ~$2,275 of (1.3%, uncapped) — MN saves about $3,400 versus CA, and Minneapolis housing is dramatically cheaper. Wisconsin (~$8,634) would save about $2,270 more. Twin Cities tech professionals tend to stay because the after-tax-after-housing math beats coastal peers even with MN's 9.85% bracket in play.
Scenario 4: Twin Cities retiree household, $115,000 (MFJ, both 67+)
| Federal income tax (taxable SS $38,250; 65+ and senior deductions) | ~$6,794 |
| Minnesota state income tax (SS fully subtracted; $1,600 x 2 aged deduction) | ~$1,937 |
| Social Security ($45K) | $0 MN tax under $110,780 MFJ AGI (full exemption) |
| Pension income ($40K) + IRA distribution ($30K) | Taxable at MN brackets |
| FICA (no longer applicable on retirement income) | $0 |
| Total taxes | ~$8,731 |
| Effective MN tax rate on retirement income | ~1.7% |
Twin Cities retiree household with mixed Social Security + pension + IRA income. The 2023 omnibus tax law's expanded SS subtraction is the structural reform that makes this work: federal is about $108,250 (pension + IRA + $38,250 of taxable SS), under the $110,780 threshold, so all of the Social Security comes back out. The remaining $70K of pension + IRA, less the $30,600 standard deduction and $1,600 per spouse for age, leaves about $36,200 taxed at 5.35%. Under the older alternate subtraction (capped at $5,840 and phasing out above $88,630), the same household would pay about $2,200 more. Compared to MN's reputation as 'retirement-unfriendly,' the post-2023 setup is appreciably more competitive — especially when combined with MN's moderate property tax and the lifestyle premium of summer-lake living.
Got the number you came for? Open the calculator at the top to run your specific salary. Or keep reading — the property tax section, K-12 Education Subtraction mechanics, and the $3M estate tax considerations are where the underrated half of Minnesota's tax story actually lives.
Open Minnesota calculator →Property tax + the $3M state estate tax exemption
Minnesota property tax statewide effective average is about 1.0% on market value — moderate, near the national average of 1.10%. The structural setup is a state-set school-funding mechanism combined with local property tax for non-school services, producing rates that vary by county and school district but don't reach the punishing levels of Iowa or New Jersey.
Approximate effective rates by county on a primary residence: Hennepin (Minneapolis + western suburbs) 1.0-1.3%, Ramsey (St. Paul) 1.1-1.4%, Dakota (south metro) 0.9-1.1%, Anoka (north metro) 0.95-1.15%, Washington (east metro) 1.0-1.2%, Olmsted (Rochester) 1.0-1.2%, St. Louis (Duluth) 1.0-1.2%, Greater Minnesota rural counties 0.7-1.0%. Edina, Wayzata, Plymouth, and other premium Twin Cities suburbs run at the high end of Hennepin County's range with school districts that consistently rank among the best in the country.
Minnesota's $3 million state estate tax exemption is the structural HNW consideration that most relocation calculators miss. The federal estate tax exemption sits at $15M+ for 2026 under — so MN-resident estates between $3M and $15M owe MN state estate tax (13-16% on the amount above $3M) even though they escape federal estate tax entirely. A $5M MN estate pays approximately $260K in state estate tax that would be zero in WI, IA, ND, or SD. This is the reason a meaningful share of MN HNW retirees with appreciated farmland or businesses establish residency in WI or FL before death. Estate-planning attention (living trusts, gifting strategies, life-insurance-funded liquidity) becomes relevant much earlier in MN than in $5M+ exemption states.
On a sale, Minnesota charges a deed tax of 0.33% of net consideration (0.34% in Hennepin and Ramsey counties), collected when the deed is recorded. The cap raise to $40,400 softens the deductibility hit on the annual property tax bill for high earners.
Things financially comfortable Minnesotans actually do
If you're earning $100K+ in MN and you're not doing most of these, you may be leaving real money on the table. None of this is exotic. Most of it is 30 minutes of setup once a year and discipline the rest of the year.
- Max your ($24,500 in 2026, $32,500 if 50+) — pre-tax for federal AND MN. At MN's 7.85-9.85% top brackets stacked on federal 22-32%, every pre-tax dollar is worth noticeably more than the take-home equivalent. A $175K Twin Cities filer maxing the 401(k) saves ~$5,880 federal (24%) + ~$1,920 MN (7.85%) = ~$7,800 in combined annual tax.
- Max your if you have a qualifying high-deductible plan ($4,400 single / $8,750 family in 2026) — pre-tax for federal AND MN. Most large MN employers (UnitedHealth, Target, 3M, US Bancorp, Best Buy, Mayo Clinic, Medtronic) offer options.
- Backdoor Roth IRA + if your employer's supports after-tax contributions with in-plan conversions — UnitedHealth, Target, US Bancorp, Best Buy corporate, Medtronic, and most large MN employers support some version. Can shelter another $40K-$45K annually beyond the $24,500 employee deferral.
- 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 beyond what schools provide, music lessons related to school, computer hardware/software, transportation to school activities). Documentation is required. Often missed by self-prepared returns; worth $80-$250 per child in MN tax saved at typical brackets; lower-income families can instead claim the refundable K-12 Education Credit (75% of expenses, up to $1,500 per child, phasing out above $77,550 of income for 2026).
- MNSAVES (529) — MN offers a state-tax deduction up to $1,500 single / $3,000 for contributions to MN's 529 plan, OR a non-refundable credit of 50% of contributions up to $500 single / $1,000 MFJ depending on which produces a larger benefit. The mechanics are unusual; verify with a CPA which path applies to your specific filing.
- Social Security subtraction optimization — for retirees near the threshold ($86,410 single / $110,780 for full exemption), small adjustments to the timing of IRA / withdrawals can preserve the full SS subtraction. Withdrawing strategically (Roth conversions in low-income years, bunching withdrawals when SS subtraction is already partially phased out) can save $500-$3,000/year of MN tax.
- Estate planning if your estate exceeds $3M — the $3M MN state estate tax exemption is much lower than federal. For a $5M estate, the state-level tax is roughly $260K above what a WI, IA, ND, or SD resident would pay. Living trusts, lifetime gifting (under the federal $19K annual exclusion or $38K split-gift), and life-insurance-funded liquidity are all worth specific MN-resident attention.
If you're doing only one thing on this list, start with the . At MN's 7.85-9.85% top brackets, the combined federal + MN savings on a maxed 401(k) runs $7,000-$9,000/year for typical professional incomes. If you have school-age kids, the K-12 Education Subtraction is the easiest credit most filers miss.
Real questions people actually ask
Q: Does Minnesota really tax Social Security?
Partially, but the 2023 reforms dramatically expanded the exemption. The 2023 omnibus tax law raised the SS subtraction thresholds significantly: for 2026, single filers under $86,410 and under $110,780 can fully subtract SS from MN taxable income. Above those thresholds, the subtraction drops 10% for each $4,000 of AGI. Most middle-income retirees end up paying $0 MN tax on Social Security. High-income retirees with $150K+ in non-SS income still pay MN tax on most of their SS. MN is one of a handful of states retaining any SS taxation — but post-2023, the state is appreciably more retirement-friendly than its reputation suggests.
Q: How does MN compare to WI for tax?
MN's top rate (9.85%) is higher than WI's (7.65%), and MN's threshold is much lower ($203,150 vs WI's $332,720). At a $80K single income, MN pays ~$3,917 and WI pays ~$3,277 — WI saves ~$640. At $200K single, MN pays ~$12,867 and WI pays ~$9,996 — WI saves ~$2,870. At $400K, the gap widens further. WI generally beats MN at most income levels above ~$80K. There is no MN-WI reciprocity (it ended in 2010), so cross-river commuters file in both states. But the Twin Cities Fortune 500 density (UnitedHealth, Target, 3M, US Bancorp, etc.) commands compensation premiums of 5-15% versus equivalent Madison or Milwaukee roles — which often offsets the MN-vs-WI tax delta in absolute take-home terms.
Q: I work in MN but live in WI. Who taxes my income?
Both, with a credit. Minnesota and Wisconsin have had no reciprocity agreement since January 1, 2010; Minnesota's agreements cover Michigan and North Dakota residents only. Your Minnesota employer withholds Minnesota tax; you file a Minnesota nonresident return for the wages, and a Wisconsin resident return reporting all income, where Wisconsin allows a credit for net tax paid to Minnesota (WI DOR). Because Minnesota's rates are higher at most incomes, you end up paying roughly Minnesota's tax. Form MWR does not apply to Wisconsin residents — it is for Michigan and North Dakota residents. A Minnesota resident working in Wisconsin does the reverse.
Q: What's the K-12 Education Subtraction?
Minnesota allows a subtraction (or refundable credit for lower-income filers) of up to $1,625 per K-6 child or $2,500 per 7-12 child for qualified educational expenses. Qualifying expenses include: tutoring, music lessons related to school, instructional materials beyond what schools provide, computer hardware and software for school use, fees for school-sponsored academic activities, transportation to school activities, and certain test prep. Above a certain income threshold, the benefit shifts from subtraction to a separate refundable credit. Documentation is required (receipts, records of educational purpose). Often missed by self-prepared returns. Worth about $80-$250 per child in MN tax saved at typical professional brackets; for lower-income families the refundable K-12 Education Credit returns 75% of expenses, up to $1,500 per child (Minn. Stat. 290.0674), phasing out above $77,550 of income for 2026.
Our honest opinion (which is just an opinion)
Quick disclaimer before we get on the soapbox: what follows is one writer's perspective after reading a lot of tax data and talking to a lot of Minnesotans. You're encouraged to disagree.
Minnesota is appreciably more expensive than its Midwest peers tax-wise. The 9.85% top rate kicking in at $203,150 and the $3M state estate tax exemption are the two structural features that make MN financially heavier than WI, IL, IA, IN, or the Dakotas at most professional income levels. The trade-off is genuine and unusually concrete: the deepest Fortune 500 cluster of any non-coastal metro (Twin Cities), excellent public schools in premium suburbs, well-funded parks and cultural institutions, the 2023 SS subtraction expansion that appreciably softened the retiree tax pain, and a $5,300 dependent exemption per child.
The case for staying in (or moving to) Minnesota:
- +Twin Cities Fortune 500 density is unusually deep — UnitedHealth, Target, 3M, US Bancorp, Best Buy, Medtronic, Ecolab, General Mills, Cargill, Land O'Lakes — typically commands 5-15% compensation premium over peer Midwest metros
- +Own standard deduction, $800 below federal single — not conformity
- +K-12 Education Subtraction is genuinely generous (up to $1,625-$2,500 per child)
- +2023 SS subtraction reforms made MN appreciably more retirement-friendly than its reputation
- +$5,300 dependent exemption per dependent (2026), on top of the K-12 subtraction
- +Cost of living dramatically cheaper than coastal alternatives — Twin Cities median home $400K vs SF $1.5M or Seattle $850K
- +Strong public schools (Edina, Wayzata, Eden Prairie, Minnetonka, Plymouth), parks system, lakes, summer arts
The case against:
- −Top 9.85% rate kicks in at just $203,150 single — catches more upper-middle professionals than peer high-tax states
- −MN partially taxes Social Security for higher-income retirees (post-2023 phase-out above $86,410 single / $110,780 )
- −$3M state estate tax exemption is appreciably lower than federal $15M+ — real HNW consideration
- −Property tax above national average in premium Twin Cities suburbs (Edina, Wayzata 1.2-1.3% effective)
- −Winters are real and long — January average highs in the teens, occasional -20°F mornings
Honest take: if you're a Twin Cities professional under $203K, MN is moderate-to-high — the bulk of income is in the 6.8-7.85% range, and the lifestyle dividend of well-funded schools, parks, and the Fortune 500 wage premium is real. Above $203K, the 9.85% top bracket is appreciable — comparable to NY or CA effective rates without either coast's geographic premium. For retirees, post-2023 reforms make MN appreciably more competitive than it was — especially under $110,780 where the SS exemption is full. For HNW families with $3M+ in assets, the state estate tax is a real consideration that warrants specific planning attention. If you're considering moving here for a Fortune 500 role, the wage premium usually compensates for the tax delta versus WI or IA peers; below $90K it's a closer call.
Either way: it's your life and your money. We just want you to look at the whole picture instead of the loudest part of it.
What now
Run your numbers in the calculator above. The MN state line models wage income, the full bracket schedule and the $5,300 dependent exemption; Social Security and other retirement income are not modeled.
If you're a parent with school-age kids, claim the K-12 Education Subtraction on your MN return — documentation required (receipts, records of educational purpose). The subtraction or credit can be worth $80-$250 per child for typical professional families, or $1,000+ per child for lower-income filers who qualify for the refundable credit path.
If you're 65+ near the SS subtraction threshold ($86,410 single / $110,780 ), talk to a CPA about retirement-income timing — small adjustments to IRA / withdrawal timing can preserve the full SS subtraction and save $500-$3,000/year of MN tax. If your estate is approaching $3M, get a MN estate-planning attorney engaged — the $3M state exemption is much lower than federal, and gifting / trust strategies become relevant earlier in MN than in peer states.
Sources & further reading
Where the numbers and rules on this page come from. Verify any claim against the primary source before making a decision based on it.
- →Minnesota DOR — Tax Year 2026 Inflation-Adjusted Amounts in Minnesota Statutes (standard deduction $15,300 / $30,600 / $23,000, bracket thresholds, Social Security subtraction phase-outs)
- →Minnesota DOR — reciprocity: Michigan and North Dakota only (Form MWR)
- →Minn. Stat. 290.0121 — dependent exemption and its phase-out
- →Minn. Stat. 290.0132 — K-12 education subtraction (subd. 4) and Social Security subtraction (subd. 26)
- →Minn. Stat. 290.0674 — K-12 education credit (75%, up to $1,500 per child)
- →Minnesota DOR — deed tax rate (0.33%; 0.34% Hennepin and Ramsey)
- →MNSAVES (529 plan)
- →U.S. Bureau of Labor Statistics — Occupational Employment and Wage Statistics
- →IRS — federal brackets per Rev. Proc. 2025-32, contribution limits per Notice 2025-67, Publication 17
A few honest notes
Stuff worth keeping in mind:
- Not personal tax, legal, or financial advice. Run your specific numbers by a licensed CPA, EA, or tax attorney before making meaningful decisions.
- Tax law changes. This guide reflects 2026 IRS schedules and current Minnesota Department of Revenue rules including the 2023 omnibus tax law's SS expansion and the dependent exemption (Minn. Stat. 290.0121).
- The SS subtraction thresholds adjust annually for inflation — verify current limits against current Form M1 instructions.
- Property tax estimates vary by county and school district — check your county assessor's website for your specific parcel.
- Numbers are illustrative. Scenarios don't include every credit, deduction, AMT interaction, NIIT, equity-comp wrinkle, or cross-state complication.
- The calculator above models the MN bracket schedule and dependent exemption but not retirement income, the SS subtraction, the K-12 Education Subtraction or credit, or the state estate tax — add manually where applicable.
- Reading this page does not create a client relationship.
- No judgment regardless of where in the state you're in. Twin Cities healthcare professionals, Rochester Mayo Clinic staff, Duluth port and shipping workers, Iron Range mining engineers, Greater Minnesota farmers and small-business owners — you're all welcome here.
Based on the MN DOR Tax Year 2026 inflation-adjusted amounts, Minn. Stat. 290.0121 / 290.0132 / 290.0674, the 2023 omnibus tax law's SS subtraction, 2026 IRS schedules per Rev. Proc. 2025-32, and current Minnesota Department of Revenue bracket schedule. Numbers assume single filer except where noted. This is journalism with a calculator attached, not tax advice. Be kind to yourself in March.
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