Minnesota income tax brackets and rates for 2025 and 2026

The rates are set in law (Minn. Stat. 290.06) and are the same every year; the Minnesota Department of Revenue recalculates the bracket amounts for inflation each year. The 2026 brackets below come from its December 2025 announcement. Each rate applies only to the taxable income inside its bracket.

On top of the regular tax, Minnesota charges a 1% net investment income tax on net investment income over $1 million, since 2024; the credit for tax paid to another state cannot be used against it.

A Minnesota return, Form M1, starts from federal adjusted gross income, then makes Minnesota additions and subtractions and takes off Minnesota’s own standard deduction or itemized deductions and a $5,200 exemption per dependent for 2025 ($5,300 for 2026). There is no personal exemption for the filer. You can itemize in Minnesota even if you took the federal standard deduction.

For example, a single filer with $60,000 of wages for 2025 has $45,050 of Minnesota taxable income after the $14,950 standard deduction. The tax is 5.35% of the first $32,570 plus 6.8% of the rest, about $2,591. For 2026, with the $15,300 standard deduction and wider brackets, it is about $2,557.

The July 2025 federal tax law (Public Law 119-21) created deductions for 2025 through 2028 for qualified tips (up to $25,000), overtime pay (up to $12,500, or $25,000 joint), car loan interest (up to $10,000) and an extra $6,000 for people 65 or older. They are taken after federal AGI, and Minnesota starts from AGI and uses its own standard deduction, so they do not lower Minnesota tax; the Department of Revenue’s chart of the federal law marks the tips, overtime and car loan provisions as having no Minnesota impact.

Minnesota’s 2026 Tax Bill, signed May 27, 2026, updated the state’s conformity to the federal tax code to May 1, 2026, retroactively, while decoupling from several business provisions such as bonus depreciation. The Department says some taxpayers may need to amend 2025 returns once updated forms are available. The bill also adds a 1% floor on charitable deductions from 2026.

Mostly not for Social Security. Under the simplified method, you subtract all your taxable Social Security if your AGI is below $108,320 married filing jointly or $84,490 single or head of household for 2025 ($110,780 and $86,410 for 2026). Above that, the subtraction shrinks by 10% for each $4,000 of AGI over the line. An alternative method, with a maximum of $5,840 joint or $4,560 single, applies if it gives more.

Homeowners file Form M1PR for the separate homestead credit refund; 2025 refunds received a one-time increase of nearly 15%, and claims are accepted until August 16, 2027.

A full-year resident files Form M1 if they must file a federal return; for 2025 that means gross income of at least $14,950 single, $29,900 married filing jointly or $22,500 head of household (higher if older). Part-year residents and nonresidents file Form M1 with Schedule M1NR if their Minnesota gross income is $14,950 or more for 2025 ($15,300 for 2026). Couples who file jointly federally must file jointly in Minnesota. Minnesota has no local income tax: state law bars cities and counties from imposing one.

2025 returns were due April 15, 2026, and 2026 returns are due April 15, 2027. Minnesota gives an automatic extension to file to October 15, with no request needed, but no extension to pay; there is no late payment penalty if you pay at least 90% by April 15 and the rest by October 15.

Check a Minnesota refund with the Department of Revenue’s “Where’s My Refund?” tool. It asks for your Social Security number, date of birth and the exact refund amount, shows which of four stages your refund is in, and updates overnight Monday through Friday. The automated refund line is 651-296-4444 or 1-800-657-3676.

The Department says it processes most returns within 21 days of acceptance, but every return is different. Paper returns, paper checks, errors and returns picked for review take longer. It deposits no more than five Minnesota refunds into the same bank account.

Minnesota has reciprocity agreements only with Michigan and North Dakota, covering wages and other personal service income for workers who return home at least once a month: give your employer Form MWR each year to stop Minnesota withholding. The Minnesota-Wisconsin agreement ended January 1, 2010, so a Minnesota resident working in Wisconsin pays Wisconsin tax and claims the special Schedule M1RCR credit; an Illinois resident working in Minnesota files as a nonresident on Form M1 and Schedule M1NR.

You are a Minnesota resident if Minnesota is your domicile, or if you spend at least 183 days in Minnesota (any part of a day counts) and you or your spouse have a home here. Part-year residents pay Minnesota tax on the share of income earned while resident or from Minnesota sources.