Question 1

How much is Minnesota state income tax in 2026?

Accepted Answer

Minnesota has one of the highest state income tax rates in the country, with progressive brackets from 5.35% to 9.85%. The top rate of 9.85% kicks in above $210,260 in taxable income for single filers. For a $75K single filer, the effective rate is roughly 5.8% after the $14,575 standard deduction. Only California (13.3%), Hawaii (11%), and New Jersey (10.75%) have higher top rates.

Question 2

What is the Minnesota standard deduction for 2026?

Accepted Answer

$14,575 for single filers, $29,150 for married filing jointly, and $21,850 for head of household. Minnesota's standard deduction is relatively generous and closely mirrors the federal standard deduction amounts. This significantly reduces the taxable income for most filers before the brackets apply.

Question 3

Does Minnesota tax Social Security benefits?

Accepted Answer

Partially. Minnesota is one of the few states that taxes Social Security benefits, though it does provide a subtraction based on income. For 2026, single filers with less than $78,000 in adjusted gross income can subtract some or all of their Social Security from state taxable income. Above that threshold, more of your benefits are subject to state tax. This is a notable drawback for retirees compared to most other states.

Question 4

How does Minnesota compare to neighboring states on taxes?

Accepted Answer

Minnesota has the highest income tax rates in the Midwest by a significant margin. Wisconsin's top rate is 7.65%, Iowa is around 5.7%, North Dakota tops out at 2.5%, and South Dakota has no income tax at all. On the plus side, Minnesota has a generous standard deduction and various credits (including a working family credit). But for high earners, Minnesota is a tough sell compared to its neighbors. Property taxes are moderate at about 1.08%.

Question 5

Is Minnesota a high-tax state overall?

Accepted Answer

Yes. Minnesota consistently ranks in the top 5-10 highest-tax states nationally. The top income tax rate of 9.85% is fourth-highest in the country, property taxes average 1.08%, and the state sales tax is 6.875% (higher in most cities with local taxes). The total state and local tax burden for a median household is roughly 10-11% of income. The trade-off is robust public services, excellent schools, and high quality-of-life metrics.

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