Minnesota variant. This is a Minnesota-specific version of the Income Tax Calculator, 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 Income Tax Calculator.
Minnesota income tax (5.35-9.85% across 4 brackets) stacks on top of federal tax. Understanding both layers is essential to estimating your total Minnesota tax bill.
Minnesota state income tax structure
Minnesota taxes income at 5.35-9.85% across 4 brackets, with a top marginal rate of 9.85%. Like the federal system, only income within each bracket is taxed at that bracket's rate.
Federal brackets (10%–37%) apply nationwide. Combine your federal effective rate with the Minnesota rate to find your true marginal tax on the next dollar earned.
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: state tax on $84,313
Using the 9.85% top rate as a ceiling, state income tax on $84,313 is at most about $8,305; the actual figure is lower after brackets and deductions.
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 have state income tax?
Yes - 5.35-9.85% across 4 brackets, topping out at 9.85%.
What is the top tax rate in Minnesota?
The top marginal state rate is 9.85%.