Minnesota Income Tax Guide 2026: Rates, Brackets and How Much You Pay
This Minnesota income tax guide 2026 explains the rates, brackets, standard deduction, and what you actually pay.
Minnesota taxes income in four brackets from 5.35% to 9.85%, and even its lowest rate beats many states’ top rates. The 9.85% top rate is one of the highest in America — but it only bites above $203,150 of taxable income for single filers. For most Minnesotans, the real story is the 5.35% and 6.80% brackets, plus a standard deduction that Minnesota sets itself.
This guide answers the questions Minnesota taxpayers actually ask: the 2026 rates and brackets, the standard deduction, the dependent exemption, and what you really pay at common salaries. Run your own numbers with the free Minnesota income tax calculator.
What are Minnesota’s income tax rates in 2026?
Minnesota has four rates in 2026: 5.35%, 6.80%, 7.85%, and 9.85%. Single filers pay 5.35% up to $33,310, 6.80% up to $109,430, 7.85% up to $203,150, and 9.85% above that. Joint filers get wider brackets, with the top rate starting at $337,930. These are marginal rates: each rate applies only to the slice of income inside its bracket.
The brackets are inflation-adjusted each year by the Minnesota Department of Revenue, so the 2026 thresholds are slightly higher than 2025’s. The four rates themselves have not changed. Minnesota has no local income tax, so the state brackets are the whole income-tax story — unlike Maryland, where a county layer adds up to 3.30% on top.
What is Minnesota’s standard deduction for 2026?
Minnesota’s 2026 standard deduction is $15,300 for single filers and married filing separately, $30,600 for married filing jointly, and $23,000 for head of household. These are Minnesota’s own amounts — close to, but not equal to, the 2026 federal standard deduction ($16,100 single, $32,200 joint). Minnesota starts from federal adjusted gross income and then subtracts its own deduction.
You can itemize on the Minnesota return instead if your Minnesota itemized deductions are larger. For most filers the standard deduction wins, and it is what the Minnesota income tax calculator uses by default. The deduction is the first thing shielding your income: a single filer pays no Minnesota tax on the first $15,300.
Does Minnesota offer a personal or dependent exemption?
Minnesota offers no personal exemption for yourself or your spouse — but it does offer a $5,300 dependent exemption per dependent for 2026. A family with two children subtracts $10,600 before the brackets apply, on top of the standard deduction. That is a meaningful saving: at the 6.80% marginal rate, two dependent exemptions save about $721.
The distinction matters when comparing states. Wisconsin, for example, gives $700 per person including yourself and your spouse, while Connecticut gives an exemption that phases out to zero for most middle-income filers. Minnesota’s version is simpler: $5,300 per dependent, no phase-out, no separate amount for you.
How much Minnesota tax do you pay on $80,000?
A single filer earning $80,000 with no dependents owes $3,916.61 in Minnesota tax for 2026 — an effective rate of 4.90%. The calculation is straightforward: subtract the $15,300 standard deduction for $64,700 of taxable income, then apply 5.35% to the first $33,310 ($1,782.09) and 6.80% to the remaining $31,390 ($2,134.52).
- Gross income: $80,000
- Standard deduction (single): −$15,300
- Minnesota taxable income: $64,700
- Tax at 5.35% and 6.80%: $3,916.61
- Effective rate: 4.90%
At $100,000 the same filer owes $5,276.61 (5.28% effective), and at $75,000 the bill is $3,577 — the figure that puts Minnesota just above Wisconsin in national comparisons. Check your own income with the Minnesota income tax calculator.
Does Minnesota tax Social Security benefits or capital gains?
Minnesota fully subtracts taxable Social Security benefits at adjusted gross income up to $86,410 for single filers ($110,780 joint) in 2026, with the subtraction phasing out above those thresholds. Many retirees therefore owe Minnesota tax on little or none of their Social Security income — a major planning point the basic bracket math misses.
Capital gains get no break at all: Minnesota taxes them as ordinary income at up to 9.85%, and adds a 1% tax on net investment income above $1 million. If you are selling a business or a large stock position, the Minnesota bill deserves its own line in your plan — there is no preferential state rate to soften it.
How does Minnesota compare to Wisconsin and its other neighbors?
Minnesota is the high-tax neighbor in the Upper Midwest. At $75,000 of single income, Minnesota charges $3,577 versus $2,944 in Wisconsin, $2,937 in Michigan, and $3,568 in Illinois, while South Dakota and Iowa’s flat 3.8% rate come in lower. The gap with Wisconsin is the bracket structure: Wisconsin’s rates start at 3.50%, nearly two points below Minnesota’s floor.
That said, Minnesota’s bill buys services — schools, health care, and infrastructure — that consistently rank near the top nationally, and Minnesota has no local income tax layer. Whether the trade is worth it depends on your income: the gap widens at higher incomes, where Minnesota’s 9.85% top rate has no Upper Midwest equivalent. Compare directly with the Wisconsin income tax calculator and the state income tax calculator hub.
What else do Minnesota taxpayers ask?
When is my 2026 Minnesota return due?
April 15, 2027, following the federal deadline. Minnesota individual returns are filed on Form M1, and estimated payments apply if withholding does not cover your liability — relevant for freelancers and anyone with significant non-wage income.
Does Minnesota have a child tax credit?
Yes. Minnesota offers a refundable Child Tax Credit (up to $1,750 per child in recent years, phasing out at higher incomes) plus a working family credit modeled on the federal EITC. Neither is included in the basic calculator, so eligible families may owe less than the bracket math shows.
Does Minnesota tax retirement income besides Social Security?
Mostly yes, with exceptions. Pension and IRA income is generally taxable, though Minnesota offers a subtraction for certain military retirement pay and the Social Security subtraction described above. There is no blanket retirement-income exclusion like some states offer.
Do I pay Minnesota tax if I work in another state?
Minnesota taxes residents on all income wherever earned, with a credit for taxes paid to other states. Minnesota has reciprocity with Michigan and North Dakota for wages, but notably not with Wisconsin or Iowa — cross-border workers there file in both states.
Estimates only — not tax advice. Verify with the Minnesota Department of Revenue or a tax professional.
