Minnesota's income tax rates and brackets for 2024

Minnesota has a progressive income tax system, meaning the tax rate increases as your income goes up. For 2024, Minnesota uses four tax brackets that range from 5.35% on the lowest incomes to 9.85% on the highest. You do not pay the top rate on all your income — only the portion that falls into each bracket gets taxed at that bracket's rate.

The four brackets for single filers in 2024 are: 5.35% on income up to $28,080; 6.80% on income from $28,080 to $73,550; 7.85% on income from $73,550 to $164,400; and 9.85% on income over $164,400. If you are married filing jointly, the income ranges are higher — for example, the top bracket begins at $246,600 instead of $164,400. These bracket amounts change each year based on inflation.

Key Takeaways

  • Minnesota taxes income at four rates ranging from 5.35% to 9.85%, with higher earners paying the higher percentage only on income above certain thresholds.
  • Tax brackets are different for single filers, married couples filing jointly, and heads of household, and they adjust annually for inflation.
  • You can reduce your taxable income through standard deductions, which vary by filing status and age, or by itemizing deductions if that amount is larger.
  • Minnesota also taxes certain types of income differently — for example, some retirement income and Social Security benefits may be partially or fully exempt from state tax.
  • Your employer withholds state income tax from your paycheck based on the W-4 form you complete, and you settle the actual amount owed when you file your return.

How deductions lower your Minnesota taxable income

Before Minnesota applies its tax rates, you subtract either a standard deduction or your itemized deductions — whichever is larger. The standard deduction for 2024 is $12,750 for single filers, $19,130 for heads of household, and $25,500 for married couples filing jointly. If you are 65 or older, you get an additional standard deduction of $1,750 (or $2,200 if you are married and both spouses are 65 or older).

If your deductible expenses — such as mortgage interest, property taxes, charitable donations, or medical costs — add up to more than the standard deduction, you can itemize instead. You would list these expenses on Schedule A and subtract the total from your income. Most people use the standard deduction because it is simpler and often larger than their actual deductible expenses.

Special treatment for retirement income and Social Security

Minnesota does not tax Social Security benefits, which means if Social Security is your only income source, you owe no Minnesota state income tax on it. This is one of the more favorable aspects of Minnesota's tax code for retirees.

Retirement income from pensions and certain retirement accounts receives partial exemption. If you are 55 or older, you can exclude up to $20,000 of income from a pension, annuity, or Individual Retirement Account (IRA) withdrawal. This exemption applies only to the first $20,000 of such income in a tax year, so higher earners do not get the full benefit on all their retirement withdrawals.

How withholding and estimated tax payments work

If you are an employee, your employer withholds Minnesota state income tax from each paycheck based on the information you provide on your W-4 form. The amount withheld is an estimate of what you will owe at the end of the year. If too much is withheld, you receive a refund when you file; if too little is withheld, you owe the difference.

If you are self-employed or have income that is not subject to withholding, you may need to make estimated tax payments four times per year — usually in April, June, September, and January. These payments are due to the Minnesota Department of Revenue. You calculate them based on your expected annual income and the tax you expect to owe.

Filing your Minnesota state income tax return

Most people file their Minnesota state return using Form M1-NR (for non-residents) or Form M1 (for residents) along with any required schedules. You must file by April 15 of the year following the tax year — the same important date as the federal return. Minnesota accepts returns filed electronically through approved software or tax professionals, and this is usually faster than paper filing.

If you cannot file by April 15, you can request an extension, which gives you until October 15 to submit your return. An extension delays the filing important date but does not delay the payment important date — any tax you owe is still due by April 15, or you will owe interest and penalties on the unpaid amount.

Credits that reduce the tax you owe

Minnesota offers several tax credits that directly reduce the amount of tax you owe, rather than reducing your income. The Working Family Household and Dependent Care Credit helps lower-income workers pay for childcare. The Earned Income Credit (Minnesota's version of the federal credit) provides money back to low-income workers. The Property Tax Refund helps renters and homeowners with lower incomes offset property taxes or rent.

Other credits include the Education Credit for higher education expenses, the Dependent Exemption Credit for dependents, and credits for certain types of charitable contributions. Each credit has income limits and specific requirements, so check the Minnesota Department of Revenue website or a tax professional to see which ones explore to your situation.

What counts as Minnesota taxable income

Minnesota taxes wages, salaries, tips, interest, dividends, capital gains, rental income, and self-employment income. It also taxes income from partnerships, S corporations, and pass-through entities. However, certain types of income are exempt — in addition to Social Security, these include some disability benefits, certain scholarships and grants, and life insurance proceeds.

If you live in Minnesota but work in another state, you generally owe Minnesota tax on all your income, including what you earned out of state. If you live outside Minnesota but earned income within the state, you owe Minnesota tax only on the income earned in Minnesota. This is why your filing status (resident or non-resident) matters when you complete your return.

Frequently Asked Questions

Do I have to file a Minnesota state return if I only owe federal tax?

Not necessarily. You must file if your income exceeds the filing threshold for your filing status — for 2024, that is $12,750 for single filers and $25,500 for married couples filing jointly. If your income is below that threshold, you do not have to file a state return, even if you filed a federal one.

What happens if I move to Minnesota during the year?

You are a resident for the part of the year you lived in Minnesota and a non-resident for the part you lived elsewhere. You file using the non-resident form and report only the income you earned while living in Minnesota. Your tax is calculated based on the portion of the year you were a resident.

Can I deduct federal income tax paid on my Minnesota return?

No. Minnesota does not allow you to deduct federal income tax as an itemized deduction. You can only deduct state and local taxes (SALT) up to $10,000 total if you itemize, and this applies to your federal return, not your Minnesota return.

What if I owe more tax than I can pay by April 15?

Contact the Minnesota Department of Revenue to set up a payment plan. You can pay in installments, though interest and penalties will accrue on the unpaid balance. Paying something by the important date is better than paying nothing, because it reduces the penalty amount.

Are military members stationed in Minnesota taxed on their income?

Military members who are Minnesota residents and stationed in Minnesota are subject to Minnesota income tax on their military pay. If you are stationed outside Minnesota, you generally do not owe Minnesota tax on military income, though you may still owe it on other income sources like investments or a spouse's wages.