Minnesota Income Tax Calculator
Minnesota has the highest top income tax rate in the Midwest at 9.85% — and unlike most states, it partially taxes Social Security. But brackets are inflation-indexed every year and there is no local income tax anywhere. This take-home pay calculator covers federal tax, all four Minnesota brackets, and FICA in one place.
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How Minnesota Income Tax Actually Works
Minnesota runs four progressive tax brackets — 5.35%, 6.80%, 7.85%, and a 9.85% top rate that kicks in at $183,340 of taxable income for single filers and $304,970 for married couples filing jointly. That 9.85% ceiling is the highest top marginal rate of any state in the Midwest, and among the higher rates nationally. What partially offsets that headline is a structural protection most states don’t have: Minnesota has been required by law to adjust its bracket thresholds for inflation every year since 1979, indexed to the Chained CPI-U. That means your tax won’t creep up purely because of inflation pushing your wages higher — the brackets move with you, unlike fixed brackets in states such as Virginia (which hasn’t meaningfully updated its thresholds since 1989).
The deduction and exemption structure in Minnesota is layered differently from most states. There is no personal exemption for yourself or your spouse — only the standard deduction, which is $14,575 for single filers and $29,150 for married filing jointly in 2025. Where families gain back ground is through the dependent exemption: $5,200 per qualifying dependent, nearly twice what you’d see in most other states. That exemption phases out at higher incomes but provides meaningful relief for households with multiple children at middle income levels. Minnesota also allows taxpayers to itemize independently of their federal return — you can take the Minnesota standard deduction even if you itemized federally, and vice versa, giving you flexibility most states don’t offer. The itemized deduction itself phases out above $238,950 in AGI for single filers.
The Social Security angle that surprises most people moving to Minnesota: unlike the majority of states that fully exempt Social Security, Minnesota actually taxes it — though it provides a subtraction that fully shelters benefits for most middle-income retirees. Taxpayers with AGI below $84,490 (single) or $108,320 (married filing jointly) can subtract 100% of their federally taxable Social Security benefits from Minnesota income. The subtraction phases out above those thresholds, and at higher incomes, Social Security is taxed at Minnesota rates the same as any other income. Combined with Minnesota’s fully inflation-indexed brackets, no local income tax anywhere in the state, a complete exemption for military retirement pay, and the K-12 Education Credit available to parents of school-age children, Minnesota’s tax picture is more nuanced than the 9.85% headline suggests.
Frequently Asked Questions
Minnesota uses four progressive brackets for 2025: 5.35% on the first $31,690 of taxable income, 6.80% from $31,691 to $103,080, 7.85% from $103,081 to $183,340, and 9.85% on income above $183,340 for single filers. Married filing jointly thresholds are higher. Brackets are adjusted annually for inflation under a state law in place since 1979.
Partially. Unlike most states that fully exempt Social Security, Minnesota taxes it but offers a subtraction: taxpayers with AGI below $84,490 (single/HOH) or $108,320 (married filing jointly) may subtract all federally taxable Social Security benefits. The subtraction phases out above those thresholds, and high earners receive no subtraction at all.
The Minnesota standard deduction for 2025 is $14,575 for single filers and married filing separately, $25,500 for head of household, and $29,150 for married filing jointly. However, the standard deduction phases out for taxpayers with adjusted gross income above $238,950 (single) or $119,475 (married filing separately).
No. Minnesota does not offer a personal exemption for the taxpayer or their spouse. Instead, Minnesota provides a dependent exemption of $5,200 per qualifying dependent child or relative, which phases out at higher income levels.
No. Minnesota does not allow any city or county to levy a local income tax. The four-bracket state schedule is the entire income-tax picture, making Minnesota’s headline rate the true top rate with no additional local layer.
No. Active-duty military pay and military retirement benefits are fully exempt from Minnesota state income tax, a meaningful benefit given the state’s relatively high top rate.
Methodology: Calculations use Minnesota’s 2025 four-bracket income tax schedule (5.35%–9.85%, per Minnesota DOR), the 2025 standard deduction ($14,575 single/MFS, $25,500 HOH, $29,150 MFJ), the $5,200 per-dependent exemption, a simplified Social Security subtraction (full subtraction below AGI thresholds, approximate phase-out above), the 2025 IRS federal tax brackets and Child Tax Credit rules, and 2025 Social Security (6.2% to the $176,100 wage base) and Medicare (1.45% + 0.9% additional Medicare tax) rates, per IRS.gov. Social Security subtraction phase-out is approximated; verify with Form M1SX instructions from Minnesota DOR. Minnesota permits no local income tax. This tool provides estimates for planning purposes only and is not tax, legal, or financial advice. Last reviewed for accuracy: June 2026.