Minnesota State Taxes
Quick Tax Facts
Income Tax: 5.35% – 9.85%
State Sales Tax: 6.875%
Median Property Tax: $2,098
Overview
Minnesota, also known as the land of 10,000 lakes, is considered one of the better states to raise a family. It has low crime and unemployment rates, good public schools, and excellent healthcare options. On the downside, however, winters can be long and harsh. The state also has some of the highest income and sales taxes in the country. Property taxes are also considered fairly high.
Minnesota Income Tax
Minnesota has a graduated tax rate that ranges between 5.35% and 9.85%. Each year, the income tax brackets are recalculated based on the rate of inflation.
| 2023 Minnesota Income Tax Rates |
|---|
| Tax Rate | Single | Head of Household | Married Filing Separately | Married Filing Jointly |
|---|---|---|---|---|
| 5.35% | $0 – $30,070 | $0 – $37,010 | $0 – $21,975 | $0 – $43,950 |
| 6.80% | $30,071 – $98,760 | $37,011 – $148,730 | $21,976 – $87,305 | $43,951 – $174,610 |
| 7.85% | $98,761 – $183,340 | $148,731 – $243,720 | $87,306 – $152,485 | $174,611 – $304,970 |
| 9.85% | Over $183,340 | Over $243,720 | Over $152,485 | Over $304,970 |
Who Must File?
Minnesota residents must file a state income tax return (Form M1) if their gross income (inside and outside of the state) meets the minimum annual filing requirement ($13,825 for 2023).
Part-Year & Non-Residents
For those who are part-year residents, you must file a Minnesota tax return if your gross income earned as a resident, as well as income received while a non-resident, meets the minimum filing requirement for full-year residents.
Non-residents are also required to file if their Minnesota gross income meets the minimum filing requirement for residents. Non-residents should use Form M1, as well as Schedule M1NR.
Minnesota Sales Tax
Minnesota has a state general sales tax rate of 6.875%. Local governments may also levy city and county sales taxes of up to 1.5% each. For example, Hermantown City has a combined sales tax rate of 8.875%. This rate includes the state sales taxes (6.875%), city (1.5%), and county (.05%). Several counties, such as Grant and Stevens, have elected not to tack on additional city or county sales taxes.
Minnesota Property Taxes
Minnesota property tax bills include both local and state property taxes. Most property taxes are paid in two installments, May 15 and October 15, annually. Residents whose bills are $100 or less must pay in full by the May 15 deadline. Properties classified as “agricultural” pay on May 15 and November 15.
The median property tax paid in Minnesota is $2,098 (based on a home value of $200,400). Carver County has the highest property tax at an average of $2,992. The lowest amount is $641 in Koochiching County.
| Highest | $2992 |
|---|---|
| Median | $2098 |
| Lowest | $641 |
Yearly Cost Per Resident
Minnesota Tax Holidays
There are no tax holidays scheduled in Minnesota at this time.
Minnesota Tax Resources
If you need assistance preparing your Minnesota state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Minnesota Department of Revenue website for additional resources.
- Make a Payment
- Where’s My Refund?
- Find a Form
- File a Return
- Taxpayer Assistance: 651-556-3000 or 800-657-3666
