Minnesota variant. This is a Minnesota-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In Minnesota, that means a top rate of 9.85% on gains.
Capital gains tax in Minnesota
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. Minnesota then taxes the same gains as ordinary income at up to 9.85%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in Minnesota
Minnesota has a graduated income tax with a high top rate approaching 10%.
Minnesota property taxes are near the national average and include a state-funded homestead credit refund for eligible owners.
Minnesota hosts an unusually large number of Fortune 500 headquarters and has a diverse economy spanning healthcare, retail, and agriculture.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus Minnesota state tax up to 9.85% = $4,925, for a combined bill near $12,425.
Quick reference
- State income tax: 5.35-9.85% across 4 brackets
- State sales tax: 6.875% (plus 1.17% avg local)
- Median home value: $340,000
- Median household income: $84,313
- Effective property tax rate: 1.05%
- Avg auto insurance: $1,500/yr
Frequently Asked Questions
Does Minnesota tax capital gains?
Yes - Minnesota taxes capital gains as ordinary income at up to 9.85%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.