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Minnesota Income Tax Calculator

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Overview of Minnesota Taxes

Minnesota has a progressive income tax with rates that are among the highest in the nation. Property and sales taxes are also above average.

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Itemized Deductions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2020 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2020 - 2021 filing season.

Your 2020 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2020 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2019 - 2020 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2020

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    ...read more
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Taxes in Minnesota

Minnesota State Tax Quick Facts

  • Income tax: 5.35% - 9.85%
  • Sales tax: 6.875% - 8.875%
  • Property tax: 1.08% average effective rate
  • Gas tax: 28.5 cents per gallon for regular gasoline and diesel

State income tax rates in the “Land of 10,000 Lakes” are among the highest in the nation, ranging from 5.35% to 9.85%, some of the highest rates in the country. The state’s property taxes and sales taxes are likewise above average on a nationwide scale. However, the impact of those rates will vary greatly depending on a taxpayer’s income level, home value and spending habits.

A financial advisor in Minnesota can help you understand how these taxes fit into your overall financial goals. Financial advisors can also help with investing and financial plans, including retirement, homeownership, insurance and more, to make sure you are preparing for the future.

Minnesota Income Taxes

The Minnesota state income tax is based on four tax brackets, with higher marginal rates for higher income earners.

Income Tax Brackets

Single Filers
Minnesota Taxable IncomeRate
​$0 - $26,9605.35%
$26,960 - $88,5506.80%
$88,550 - $164,4007.85%
​$164,400+9.85%
Married, Filing Jointly
Minnesota Taxable IncomeRate
​$0 - $39,1405.35%
$39,140 - $156,5706.80%
​$156,570 - $273,4707.85%
$273,470+9.85%
Married, Filing Separately
Minnesota Taxable IncomeRate
​$0 - ​$19,7055.35%
$19,705 - $78,2856.80%
$78,285 - $136,7357.85%
$136,735+9.85%
Head of Household
Minnesota Taxable IncomeRate
$0​ - $33,1905.35%
$33,190 - ​$133,3606.80%
$133,360 - $218,5407.85%
$218,540+9.85%

As mentioned above, those are among the highest state income tax rates in the country. But these rates apply to taxable income, not gross income. Taxable income takes into account all applicable deductions and exemptions; in Minnesota, these track very closely to federal deductions and exemptions.

With the exception of the deduction for state and local income taxes, all federal itemized deductions can also be claimed on Minnesota state income tax returns. The Minnesota standard deduction for 2020 is $12,400 for single filers. For married couples, the standard deduction is $24,800 total if filing jointly and $12,400 (each) if filing separately. Heads of household get a standard deduction of $18,650.

Itemized deductions in Minnesota phase out for taxpayers above a certain income level. For married persons filing separately, the phase out begins at $97,325 of federal adjusted gross income (AGI). For all other filers, the phase out begins at $194,650 of federal AGI.

One rule that may be important to many retirees is that Minnesota taxes Social Security benefits at the same level as the federal government (which is up to 85% of Social Security benefits). Most states do not tax Social Security benefits at all.

Minnesota Tax Credits

There are a number of tax credits which can lower your overall tax bill in Minnesota. The three most significant tax credits are the Working Family Credit (available to taxpayers who are eligible for the federal Earned Income Tax Credit), the Dependent Care Credit and the K-12 Education Credit (which allows taxpayers with children in school to deduct expenses).

Minnesota Sales Tax

The state sales tax rate in Minnesota is 6.875%. Additionally, many counties and cities in Minnesota levy their own local sales taxes, with rates of up to 2.00%. The table below shows the sales tax rates for every county and the largest cities in Minnesota.

Sales Tax Rates(Updated December 2020)

County
CountyState RateCounty RateTotal Sales Tax
Aitkin County6.875%0.000%6.875%
Anoka County6.875%0.250%7.125%
Becker County6.875%0.500%7.375%
Beltrami County6.875%0.500%7.375%
Benton County6.875%0.500%7.375%
Big Stone County6.875%0.000%6.875%
Blue Earth County6.875%0.500%7.375%
Brown County6.875%0.500%7.375%
Carlton County6.875%0.500%7.375%
Carver County6.875%0.500%7.375%
Cass County6.875%0.500%7.375%
Chippewa County6.875%0.000%6.875%
Chisago County6.875%0.500%7.375%
Clay County6.875%0.500%7.375%
Clearwater County6.875%0.000%6.875%
Cook County6.875%1.500%8.375%
Cottonwood County6.875%0.000%6.875%
Crow Wing County6.875%0.500%7.375%
Dakota County6.875%0.250%7.125%
Dodge County6.875%0.500%7.375%
Douglas County6.875%0.500%7.375%
Faribault County6.875%0.000%6.875%
Fillmore County6.875%0.500%7.375%
Freeborn County6.875%0.500%7.375%
Goodhue County6.875%0.500%7.375%
Grant County6.875%0.000%6.875%
Hennepin County6.875%0.650%7.525%
Houston County6.875%0.000%6.875%
Hubbard County6.875%0.500%7.375%
Isanti County6.875%0.500%7.375%
Itasca County6.875%0.000%6.875%
Jackson County6.875%0.000%6.875%
Kanabec County6.875%0.500%7.375%
Kandiyohi County6.875%0.500%7.375%
Kittson County6.875%0.000%6.875%
Koochiching County6.875%0.000%6.875%
Lac qui Parle County6.875%0.000%6.875%
Lake County6.875%0.500%7.375%
Lake of the Woods County6.875%0.000%6.875%
Le Sueur County6.875%0.000%6.875%
Lincoln County6.875%0.000%6.875%
Lyon County6.875%0.000%6.875%
Mahnomen County6.875%0.000%6.875%
Marshall County6.875%0.000%6.875%
Martin County6.875%0.000%6.875%
McLeod County6.875%0.500%7.375%
Meeker County6.875%0.000%6.875%
Mille Lacs County6.875%0.500%7.375%
Morrison County6.875%0.500%7.375%
Mower County6.875%0.500%7.375%
Murray County6.875%0.000%6.875%
Nicollet County6.875%0.500%7.375%
Nobles County6.875%0.000%6.875%
Norman County6.875%0.000%6.875%
Olmsted County6.875%0.500%7.375%
Otter Tail County6.875%0.500%7.375%
Pennington County6.875%0.000%6.875%
Pine County6.875%0.500%7.375%
Pipestone County6.875%0.000%6.875%
Polk County6.875%0.250%7.125%
Pope County6.875%0.000%6.875%
Ramsey County6.875%0.500%7.375%
Red Lake County6.875%0.000%6.875%
Redwood County6.875%0.500%7.375%
Renville County6.875%0.000%6.875%
Rice County6.875%0.500%7.375%
Rock County6.875%0.000%6.875%
Roseau County6.875%0.000%6.875%
Saint Louis County6.875%0.500%7.375%
Scott County6.875%0.500%7.375%
Sherburne County6.875%0.500%7.375%
Sibley County6.875%0.000%6.875%
Stearns County6.875%0.250%7.125%
Steele County6.875%0.500%7.375%
Stevens County6.875%0.000%6.875%
Swift County6.875%0.000%6.875%
Todd County6.875%0.500%7.375%
Traverse County6.875%0.000%6.875%
Wabasha County6.875%0.500%7.375%
Wadena County6.875%0.500%7.375%
Waseca County6.875%0.500%7.375%
Washington County6.875%0.250%7.125%
Watonwan County6.875%0.000%6.875%
Wilkin County6.875%0.000%6.875%
Winona County6.875%0.500%7.375%
Wright County6.875%0.500%7.375%
Yellow Medicine County6.875%0.000%6.875%
City
CityState RateCounty + City RateTotal Sales Tax
Apple Valley6.875%0.250%7.125%
Blaine6.875%0.250%7.125%
Bloomington6.875%0.650%7.525%
Brooklyn Park6.875%0.650%7.525%
Burnsville6.875%0.250%7.125%
Coon Rapids6.875%0.250%7.125%
Cottage Grove6.875%0.250%7.125%
Duluth6.875%2.000%8.875%
Eagan6.875%0.250%7.125%
Eden Prairie6.875%0.650%7.525%
Edina6.875%0.650%7.525%
Inver Grove Heights6.875%0.250%7.125%
Lakeville6.875%0.250%7.125%
Mankato6.875%1.000%7.875%
Maple Grove6.875%0.650%7.525%
Maplewood6.875%0.500%7.375%
Minneapolis6.875%1.150%8.025%
Minnetonka6.875%0.650%7.525%
Minnetonka Mills6.875%0.650%7.525%
Moorhead6.875%0.500%7.375%
Plymouth6.875%0.650%7.525%
Richfield6.875%0.650%7.525%
Rochester6.875%1.250%8.125%
Roseville6.875%0.500%7.375%
Saint Cloud6.875%0.750%7.625%
Saint Louis Park6.875%0.650%7.525%
Saint Paul6.875%1.000%7.875%
Shakopee6.875%0.500%7.375%
West Coon Rapids6.875%0.650%7.525%
Woodbury6.875%0.250%7.125%

As you can see, in several of Minnesota’s largest cities, sales taxes (local plus state) exceed 7.50%. In Minneapolis, there are surtaxes of 3% on restaurants, liquor and entertainment in the downtown area. Two other cities, Mankato and Proctor, have their own surtaxes on food and beverages, of 0.5% and 1% respectively.

While those taxes apply to prepared food (as does the regular state sales tax), food purchased at a grocery store, for off-premises consumption, is generally not taxable in Minnesota. So, for example, you would pay no sales tax on cereal, spaghetti sauce, sugar or food coloring. On the other hand, candy, soft drinks and food from vending machines are all taxable.

Additionally, most clothing is not taxable in Minnesota, an important exception that separates Minnesota from many other states. Blue jeans, shoes, coats, t-shirts and even diapers are all nontaxable. “Clothing accessories,” however, like hair clips, umbrellas and backpacks, are taxable.

Many services are also subject to sales tax in Minnesota. Among the services for which Minnesotans have to pay sales tax are: installations, laundry services, lawn care, parking services and telecommunications services.

Minnesota Property Tax

Property taxes in Minnesota are primarily administered and collected by county authorities. This means that rates will vary depending on where you live. They range from lows of 0.56% in Aitkin County, to a high of 1.28% in Hennepin County. On average, annual property tax payments in Minnesota are about $2,670. The average effective property tax rate in the state is 1.08%, which almost exactly equal to the national mark.

If you are thinking about buying a home in Minnesota, the property taxes of each county are just one of many things to consider. Our Minnesota mortgage guide is a great place to start researching the ins and outs of getting a mortgage in the state.

Minnesota Estate Tax

The estate tax in Minnesota currently applies to taxable estates worth more than $3 million. The exemption was $2.7 million for deaths in 2019.

Estates with a taxable value greater than that amount must file an estate tax return. Note that recent gifts (those made within three years prior to the decedent’s death) are considered when evaluating the estate. The table below shows the marginal rates and brackets to which those rates apply.

Minnesota Estate Tax Rates

Minnesota Taxable EstateMarginal Tax Rate
$0 - $7,100,00013.0%
$7,100,000 - $8,100,00013.6%
$8,100,000 - $9,100,00014.4%
$9,100,000 - $10,100,00015.2%
$10,100,000+16.0%

Minnesota Cigarette Tax

Minnesota has increased its tobacco taxes in recent years, up to the current rate of $3.04 per pack of 20 cigarettes.

Minnesota Gas Tax

The statewide gas tax in Minnesota is 28.5 cents per gallon of regular gasoline.

Photo credit: flickr
  • There are 11,842 separate lakes that are at least ten acres in surface area in Minnesota.
  • The average high January temperature in the city of Minneapolis is 23.7 degrees Fahrenheit.
  • The Mayo Clinic, based in Rochester, Minnesota, is considered one of the best medical practices in the world.

Calculate Your Income Taxes in These Other States

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

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Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

To find the places with the lowest tax burdens, SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden, we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income after taxes. This balance is then multiplied by 35% to estimate the sales tax paid.For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to calculate a total tax burden. Finally, each county was ranked and indexed, on a scale of 0 to100. The county with the lowest tax burden received a score of 100 and the remaining counties in the study were scored based on how closely their tax burden compares.

Sources: US Census Bureau 2018 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset