Minnesota income tax brackets use four graduated rates — 5.35%, 6.80%, 7.85%, and 9.85% — and the income ranges that each rate applies to depend on your filing status and are adjusted every year for inflation. For 2026, a single filer reaches the top 9.85% rate on taxable income above $203,150, and a married couple filing jointly reaches it above $337,930.1Minnesota Department of Revenue. Income Tax Rates and Brackets The 9.85% rate is one of the highest state top rates in the country, which makes knowing exactly where each threshold falls worth real money at filing time.
How the Graduated Rates Actually Work
Each dollar of your income is taxed only at the rate for the bracket it lands in. If you file as single and earn $40,000 in taxable income, you don’t pay 6.80% on the whole amount. You pay 5.35% on the first $33,310 and 6.80% only on the $6,690 above that line. Crossing into a higher bracket never costs you more than the raise that pushed you across it.
The four rate percentages themselves are fixed in Minnesota Statutes Section 290.06 and have held at 5.35%, 6.80%, 7.85%, and 9.85% for several years.2Minnesota Office of the Revisor of Statutes. Minnesota Code 290.06 – Rates of Tax; Credits What moves each year is the dollar amount where each rate takes over.
2026 Brackets by Filing Status
Four sets of thresholds apply, one per filing status.1Minnesota Department of Revenue. Income Tax Rates and Brackets
Single
- 5.35% on income from $0 to $33,310
- 6.80% on income from $33,311 to $109,430
- 7.85% on income from $109,431 to $203,150
- 9.85% on income above $203,150
Married Filing Jointly
- 5.35% on income from $0 to $48,700
- 6.80% on income from $48,701 to $193,480
- 7.85% on income from $193,481 to $337,930
- 9.85% on income above $337,930
Head of Household
- 5.35% on income from $0 to $41,010
- 6.80% on income from $41,011 to $164,800
- 7.85% on income from $164,801 to $270,060
- 9.85% on income above $270,060
Married Filing Separately
- 5.35% on income from $0 to $24,350
- 6.80% on income from $24,351 to $96,740
- 7.85% on income from $96,741 to $168,965
- 9.85% on income above $168,965
The married-filing-separately thresholds are exactly half of the married-filing-jointly amounts, which is required by statute rather than coincidence.2Minnesota Office of the Revisor of Statutes. Minnesota Code 290.06 – Rates of Tax; Credits
Why the Numbers Change Each Year
Section 290.06, subdivision 2d, directs the Commissioner of Revenue to adjust every bracket threshold annually based on the Consumer Price Index, using 2019 as the base year.2Minnesota Office of the Revisor of Statutes. Minnesota Code 290.06 – Rates of Tax; Credits The rate percentages don’t move; only the dollar thresholds do. Adjusted brackets are rounded to the nearest $10, with amounts ending in $5 rounded up. The intent is to keep a cost-of-living raise from quietly pushing you into a higher bracket when your buying power hasn’t actually gone up.
The Department of Revenue typically releases the next year’s bracket figures, standard deduction, and dependent exemption late in the preceding calendar year. For 2026, the dependent exemption is $5,300.3Minnesota Department of Revenue. Tax Year 2026 Inflation-Adjusted Amounts in Minnesota Statutes Check the current year’s Form M1 instructions before filing so you’re using the right numbers.
What Income the Brackets Apply To
The brackets apply to your Minnesota taxable income, not your gross wages and not your federal adjusted gross income on its own. The calculation starts from your federal taxable income, then you make Minnesota-specific additions and subtractions on Schedule M1M to arrive at the figure the brackets act on. Additions are listed in Minnesota Statutes Section 290.0131; subtractions are in Section 290.0132.4Minnesota Office of the Revisor of Statutes. Minnesota Code 290.0131 – Individuals, Estates, and Trusts; Additions to Federal Taxable Income or Federal Adjusted Gross Income5Minnesota Office of the Revisor of Statutes. Minnesota Code 290.0132 – Income Subtractions
Common additions include interest from out-of-state municipal bonds and 529-plan distributions used for K-12 tuition. Common subtractions include qualifying Social Security benefits, K-12 education expenses, contributions to a qualified education savings plan, U.S. bond interest, and military pay. The K-12 education subtraction, for example, allows up to $1,625 per child in grades K-6 and up to $2,500 per child in grades 7-12, with computer hardware and software capped at $200 per family.6Minnesota Department of Revenue. 2025 Schedule M1M, Income Additions and Subtractions These adjustments can shift which bracket your top dollars actually fall into.
Who the Minnesota Brackets Apply To
Full-year Minnesota residents owe Minnesota tax on all their income, no matter where it was earned, and the brackets above apply to the full amount. The state treats you as a resident if Minnesota is your domicile — the permanent home you intend to return to — or, failing that, if you keep a place to live in Minnesota and spend more than 183 days in the state during the year.7Minnesota Office of the Revisor of Statutes. Minnesota Rules 8001.0300 – Resident and Domicile Defined; Considerations
Nonresidents owe Minnesota tax only on income from Minnesota sources, such as wages earned at a Minnesota job, rental income from Minnesota property, or business profits generated in the state.8Minnesota House of Representatives. Income Taxation of Residents and Nonresidents Part-year residents file a return for the portion of the year they lived in Minnesota and allocate income accordingly.
Michigan and North Dakota Reciprocity
If you live in Michigan or North Dakota and work in Minnesota — or the reverse — Minnesota’s reciprocity agreements let you pay tax only to your home state on wages and other personal service income, provided you return to your home state at least once a month during the year. Reciprocity covers wages, salaries, tips, commissions, fees, and bonuses. It does not cover business, rental, or investment income. To stop Minnesota withholding on reciprocity-covered wages, file Form MWR with your employer each year.9Minnesota Department of Revenue. Reciprocity
Minnesota’s prior reciprocity with Wisconsin ended after the 2009 tax year. Wisconsin residents who work in Minnesota now file in both states and claim a credit from Wisconsin to avoid double taxation on the same income.
Filing Deadline
Minnesota income tax returns are due April 15 following the close of the tax year, meaning the 2025 return is due April 15, 2026. An automatic extension to file is available, but any tax owed is still due on the original April 15 date, and interest and penalties accrue on unpaid balances from that day forward. If your income is $89,000 or less, you may qualify for free electronic filing through the Department of Revenue’s website.