Yes, Minnesota has a state income tax. It applies to individuals, estates, and trusts, with four progressive rates running from 5.35 percent on the lowest band of taxable income up to 9.85 percent on the highest.1Minnesota Office of the Revisor of Statutes. Minnesota Code 290.06 – Rates of Tax A separate 1 percent surcharge applies to net investment income above $1,000,000. The Minnesota Department of Revenue administers the tax, processes returns, and issues refunds.
The 2026 Tax Brackets
Minnesota’s rates are 5.35%, 6.80%, 7.85%, and 9.85%. Only the income that falls inside a given band is taxed at that band’s rate, so moving into a higher bracket does not change the rate on your earlier dollars. The dollar cutoffs adjust each year for inflation.1Minnesota Office of the Revisor of Statutes. Minnesota Code 290.06 – Rates of Tax
For tax year 2026, single filers pay:2Minnesota Department of Revenue. Minnesota Income Tax Brackets, Standard Deduction and Dependent Exemption
- 5.35% on taxable income up to $33,310
- 6.80% on $33,311 to $109,430
- 7.85% on $109,431 to $203,150
- 9.85% on $203,151 and above
Married couples filing jointly pay:2Minnesota Department of Revenue. Minnesota Income Tax Brackets, Standard Deduction and Dependent Exemption
- 5.35% on taxable income up to $48,700
- 6.80% on $48,701 to $193,480
- 7.85% on $193,481 to $337,930
- 9.85% on $337,931 and above
Head of household filers pay:2Minnesota Department of Revenue. Minnesota Income Tax Brackets, Standard Deduction and Dependent Exemption
- 5.35% on taxable income up to $41,010
- 6.80% on $41,011 to $164,800
- 7.85% on $164,801 to $270,060
- 9.85% on $270,061 and above
These rates apply to taxable net income, not gross pay. You start with federal adjusted gross income, apply Minnesota’s own additions and subtractions, and then take either the standard deduction or itemized deductions.
The Standard Deduction
Minnesota sets its own standard deduction, separate from the federal figure, and it also adjusts for inflation. For tax year 2026 the amounts are $15,300 for single filers, $30,600 for married couples filing jointly, $23,000 for head of household, and $15,300 for married filing separately.3Minnesota Department of Revenue. Minnesota Income Tax Brackets, Standard Deduction and Dependent Exemption Amounts for Tax Year 2026 If your gross income sits below the standard deduction for your filing status, you probably owe no Minnesota tax, though you may still have a filing obligation.
Who Owes Minnesota Income Tax
Full-year Minnesota residents owe tax on income from every source, wherever it was earned. Nonresidents owe tax only on income with a Minnesota source, such as wages for work performed in the state. Part-year residents fall in between: taxed on everything earned while they lived in Minnesota, plus any Minnesota-source income earned the rest of the year.4Minnesota House of Representatives. Income Taxation of Residents and Nonresidents
You are a full-year resident if Minnesota is your domicile, meaning the place you treat as your permanent home. You also count as a resident, even without a Minnesota domicile, if you keep a place to live in the state and spend more than half the tax year here.5Minnesota Office of the Revisor of Statutes. Minnesota Rules 8001.0300 – Resident
One important boundary: Minnesota has reciprocity agreements with Michigan and North Dakota. If you live in either state and your Minnesota income is limited to wages, bonuses, tips, or commissions, you pay income tax only to your home state on those earnings, provided you file Form MWR with your Minnesota employer.6Minnesota Management and Budget. Form MWR, Reciprocity Exemption/Affidavit of Residency There is no such agreement with Wisconsin; that one ended with tax year 2010 and has not returned. Minnesota residents who pay tax to another state on the same income can claim a credit on their Minnesota return to avoid double taxation.7Minnesota Department of Revenue. Taxes Paid to Another State Credit
Who Has to File a Return
If you are required to file a federal return, you generally must file a Minnesota return too. You also have to file if your Minnesota gross income meets the state’s filing threshold, even if deductions wipe out any tax you would owe.8Minnesota Department of Revenue. Who Must File an Income Tax Return
Tax year 2025 returns are due April 15, 2026.9Minnesota Department of Revenue. File an Income Tax Return Minnesota grants an automatic extension to October 15 for filing, with no form required. The extension does not cover payment. Any tax you owe is still due April 15, and anything unpaid after that starts accruing penalties and interest.10Minnesota Department of Revenue. Filing After the Due Date
Social Security and the Investment Income Surcharge
Minnesota does tax Social Security benefits, but it offers an income-based subtraction. Below certain income thresholds your Social Security benefits are fully exempt; the subtraction phases out as income rises, and at higher incomes the benefits become fully taxable. The thresholds adjust each year, so check the Department of Revenue for the current figures.11Minnesota House of Representatives. Taxation of Social Security Benefits in Minnesota
At the other end of the income scale, Minnesota adds a 1 percent surcharge on net investment income above $1,000,000 for individuals, estates, and trusts.12Minnesota Office of the Revisor of Statutes. Minnesota Code 290.033 – Net Investment Income Tax Net investment income includes interest, dividends, annuities, royalties, and capital gains, with an exclusion for gains on certain agricultural property. The 1 percent applies only to the amount over the $1 million threshold.
Late Filing and Late Payment Penalties
Minnesota treats filing late and paying late as two different problems, and the penalties can stack. If you do not file your return within six months of the due date, the state adds a 5 percent penalty on the tax still unpaid at that point.13Minnesota Office of the Revisor of Statutes. Minnesota Code 289A.60 – Civil Penalties A separate 4 percent late payment penalty applies to any tax not paid by April 15. There is a safe harbor: pay at least 90 percent of your tax by the due date, file within six months, and pay the balance when you file, and the late payment penalty is waived.
Interest runs on top of penalties, from the day the tax becomes past due until it is paid. For 2026 the interest rate is 7 percent.14Minnesota Department of Revenue. Tax Professional Tip – Income Tax Penalties and Interest Rates