How Much Is Income Tax in Minnesota?

Minnesota’s state income tax serves as a significant source of revenue for the state, funding a wide array of public services and programs. This tax system is designed with a progressive structure, meaning that as an individual’s income increases, a higher percentage of that income is subject to taxation.

Minnesota Income Tax Brackets and Rates

Minnesota employs a graduated income tax system, featuring four distinct tax rates that apply to different income thresholds. The income ranges for each rate vary based on a taxpayer’s filing status. For the 2024 tax year, filed in 2025, these brackets have been adjusted for inflation.

Single filers with taxable income up to $31,690 pay a rate of 5.35%. Income between $31,691 and $104,090 is taxed at 6.80%. Income from $104,091 to $193,240 is subject to a 7.85% rate. Any taxable income exceeding $193,240 for single filers is taxed at the highest rate of 9.85%.

For married couples filing jointly and qualifying widow(er)s, the 5.35% rate applies to taxable income up to $46,330. The 6.80% rate is for income between $46,331 and $184,040. The 7.85% rate covers income from $184,041 to $321,450. Taxable income above $321,450 for these filers falls into the 9.85% bracket.

Married individuals filing separately generally have brackets that are half the amounts for joint filers. Head of household filers also have their own income thresholds.

Calculating Your Minnesota Taxable Income

Calculating your Minnesota taxable income begins with your Federal Adjusted Gross Income (FAGI). This is the figure from your federal income tax return after certain “above-the-line” deductions. Minnesota then requires specific additions to and subtractions from this federal figure.

Certain income types not taxed federally may need to be added back for Minnesota tax purposes. Common additions include interest from municipal bonds issued by states other than Minnesota and federally tax-exempt dividends from mutual funds investing in out-of-state bonds.

Various subtractions are allowed from your FAGI, which can reduce your Minnesota taxable income. Examples include K-12 education expenses, certain military pay, and specific types of U.S. bond interest. If you reported a state income tax refund on your federal return from a prior year, you may subtract this amount.

After accounting for these adjustments, taxpayers choose between the Minnesota standard deduction or itemizing deductions. For 2024, the Minnesota standard deduction is $14,575 for single filers and married individuals filing separately. It is $29,150 for married filing jointly and $21,900 for head of household filers. An additional standard deduction of $1,950 for single filers or $1,450 for married filing separately applies if the taxpayer is age 65 or older or blind.

Minnesota has its own allowable itemized deductions, which may differ from federal itemized deductions. Taxpayers can itemize for state purposes even if they took the standard deduction federally. Common itemized deductions include medical and dental expenses exceeding 10% of your adjusted gross income, and real estate taxes up to $10,000 ($5,000 for married filing separately). Home mortgage interest is also deductible, with limits based on loan origination date and amount. Charitable contributions that qualify federally also qualify for Minnesota itemized deductions.

Reducing Your Minnesota Tax Bill with Credits

After calculating your Minnesota taxable income and tax liability, various tax credits are available to directly reduce the amount of tax you owe. Unlike deductions, which reduce taxable income, credits reduce your tax bill dollar-for-dollar. Some credits are refundable, meaning you can receive a refund even if the credit amount exceeds your tax liability.

The Child and Dependent Care Credit helps offset expenses for the care of a qualifying person to allow the taxpayer to work or look for work. This refundable credit, for 2024, allows qualifying expenses up to $3,000 for one person or $6,000 for two or more. Eligibility is subject to federal adjusted gross income limits, with the credit phasing out for higher incomes.

The K-12 Education Credit and Subtraction programs offer tax relief for families with children in kindergarten through 12th grade. The K-12 Education Credit is a refundable credit equal to 75% of qualifying expenses, up to certain maximums, and is subject to household income limits. The K-12 Education Subtraction has no income limit and allows taxpayers to reduce their taxable income for qualifying education expenses. Taxpayers cannot claim both for the same expenses.

The Working Family Credit is a refundable credit for lower-income individuals and families. For 2024, this credit can be up to 4% of earned income, with a maximum of $369. It begins to phase out when income exceeds $31,090 ($36,880 for married filing jointly). It shares eligibility requirements with the federal Earned Income Tax Credit but has specific Minnesota provisions, such as not requiring a Social Security number and allowing childless taxpayers aged 19 to 24 to qualify.

Renters in Minnesota may be eligible for the Renter’s Credit, claimed as part of the Minnesota Individual Income Tax return (Form M1) starting with the 2024 tax year. This refundable credit requires a Certificate of Rent Paid (CRP) from the landlord. It is available to those whose household income is below a specified threshold, which for 2024 is $75,390. The maximum credit available is $2,640.

The Child Tax Credit offers up to $1,750 per qualifying child aged 0 to 17, with no limit on the number of children claimed. This refundable credit is subject to income phase-outs, similar to the Working Family Credit. Starting in tax year 2025, taxpayers who qualify for the 2024 Child Tax Credit may elect to receive advance payments of their 2025 credit.

Filing Your Minnesota Income Tax Return

Once income, deductions, and credits are accounted for, the final step is to submit your Minnesota income tax return. For most individual taxpayers, the deadline to file their 2024 Minnesota tax return is April 15, 2025. This deadline applies whether filing electronically or by mail, and the return must be received or postmarked by this date.

If you cannot file by the April 15 deadline, Minnesota offers an automatic six-month extension to file, pushing the deadline to October 15. No specific form is required. This extension applies only to filing, not to the payment of taxes owed. Any tax liability must still be paid by the original April 15 due date to avoid penalties and interest.

Minnesota residents are generally required to file a state income tax return if they must file a federal income tax return. Part-year residents and nonresidents must file if their Minnesota-source gross income meets certain minimum filing requirements. These vary by age and filing status; for example, $14,575 for single filers under age 65 in 2024. Taxpayers should still file if Minnesota income tax was withheld or if they qualify for refundable credits, as this is necessary to claim a refund.

Taxpayers have several options for filing. Electronic filing is available through various tax software providers; free electronic filing may be an option for those with an adjusted gross income of $84,000 or less. Paper returns can be completed and mailed to the Minnesota Department of Revenue. Payments can be made online directly from a bank account, via credit or debit card (which may incur a service fee), or by mailing a check or money order with a payment voucher.