Minnesota State Taxes

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.

2026 Minnesota Income Tax Rates

Tax Rate	Single	Head of Household	Married Filing Separately	Married Filing Jointly
5.35%	$0 – $33,310	$0 – $41,010	$0 – $24,350	$0 – $48,700
6.80%	$33,311 – $109,430	$41,011 – $164,800	$24,351 – $96,740	$48,701 – $193,480
7.85%	$109,431 – $203,150	$164,800 – $270,060	$96,741 – $168,965	$193,481 – $337,930
9.85%	Over $203,150	Over $270,060	Over $168,965	Over $337,930

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.

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 $2,587. Carver County has the highest property tax at an average of $4,170. The lowest amount is $1,004 in Koochiching County.

Minnesota Property Tax

Highest	$4170
Median	$2587
Lowest	$1004

Yearly Cost Per Resident

Minnesota Tax Holidays

There are no tax holidays scheduled in Minnesota at this time.

Minnesota Tax Relief

Falling behind on your Minnesota income taxes can create additional challenges as penalties and interest continue to accrue. If your taxes remain unpaid, the Minnesota Department of Revenue may take steps to collect what you owe. Whether you’re dealing with past-due returns, financial hardship, or unresolved business tax obligations, addressing the problem sooner may help prevent your situation from escalating.

If paying your Minnesota tax balance in full isn’t possible, there may be options available to help you resolve your debt. Depending on your circumstances and eligibility, you may be able to set up a payment agreement, submit an Offer in Compromise, or explore other forms of assistance. Taking action before collection efforts progress may also help you avoid or address enforcement measures such as tax liens, wage garnishments, bank levies, and other collection actions.

Understanding Minnesota’s tax collection process and the relief options that may be available can make it easier to determine your next steps. By addressing your outstanding balance and finding a resolution that fits your circumstances, you can work toward getting your Minnesota tax account back on track.

Common Minnesota State Tax Problems

How Minnesota Collects Tax Debt

If you owe Minnesota income taxes, the state will issue a Notice of Tax Due. This breaks down exactly what you owe, including penalties and interest fees. It also establishes a deadline for payment in full. You generally have 30 days before the state takes additional action.

Failure to pay or respond to the demand for payment will result in your account moving to the Collections Division. They will issue a past-due notice. If this is ignored, the state will send a Final Notice of Intent to Levy before taking aggressive administrative action.

Minnesota administrative actions may include:

• Wage garnishment
• Bank levy
• Property seizure
• Tax refund offset
• Revocation of professional licenses

Demand for Payment sent to taxpayer

Collection Notice sent

Enforcement actions commence

Minnesota State Tax Relief Options

Minnesota offers a few relief options, including:

• Payment Agreements– If you can’t pay in full, you can request a payment agreement.
• Financial Hardship – Taxpayers who cannot provide for their basic necessities may apply for financial hardship, which suspends payments and collections.   
• Offer in Compromise – If you can’t pay your full bill due to financial hardship, you may request an Offer in Compromise, which settles your debt for less.
• Penalty Abatement – The state may reduce or waive your penalties and interest if there was reasonable cause why you filed or paid late.

If you’re experiencing financial hardship and can’t pay your Minnesota income tax bill, contact the Department of Revenue as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Minnesota Tax Relief FAQs

How do I set up an Minnesota payment plan?

You can request a Minnesota payment agreement online using the Payment Plan Agreement System if you:

• Have a Social Security number (SSN)
• Received a bill
• Don’t have a current payment agreement in place
• Are not in bankruptcy proceedings
• Do not have a levy against you

Taxpayers who cannot set up a payment agreement online must contact the Minnesota DOR by phone (800-657-3909), email, or letter.

What happens if I ignore Minnesota tax notices?

If you don’t pay your Minnesota income taxes and ignore repeated notices, the state may garnish your wages, file a tax lien, seize your property (levy), revoke your license (driver’s or professional), or seize future tax refunds.

Can Minnesota garnish my wages for unpaid taxes?

Yes, Minnesota can garnish up to 25% of your take-home pay if you have an outstanding tax balance.

Can Minnesota levy my bank account?

Yes. The MN Department of Revenue can seize funds from your bank accounts if you have ignored repeated payment requests.

How long does Minnesota have to collect back taxes?

Minnesota typically has 5 years from the date of tax assessment to collect back taxes. If the state files a tax lien, the collection time limit becomes 10 years from the recording date.

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