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The facts on Minnesota’s Tax Climate
7.85%Individual Income Tax
9.8%Corporate Income Tax
6.875%Sales and Excise Taxes
Minnesota's Individual Income Tax System
Minnesota's personal income tax system consists of three brackets and a top rate of 7.85%. That rate ranks 9th highest among states levying an individual income tax. Minnesota's income tax collections per person were $1219 in 2010 which ranked 8th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Minnesota's Corporate Income Tax System
Minnesota's corporate income tax system consists of a flat rate of 9.8%. That rate ranks 3rd highest among states levying an corporate income tax. Minnesota's corporate tax collections per person were $136 in 2010 which ranked 13th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Minnesota Sales and Excise Taxes
Minnesota levies a 6.875% general sales or use tax on consumers, which is above the national median of 6%. The average local sales tax rate is an additional 0.29%. Minnesota's state and local governments collect $856 per person in general sales taxes and $683 per person in excise taxes, for a combined figure of $1540, which ranks 13th highest nationally. Minnesota's gasoline tax stands at 28.6¢ (19th highest nationally), while its cigarette tax stands at $1.23 (24th lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Minnesota Property Tax Collections Average
Minnesota's state and local governments collected approximately $1412 per person in property taxes, which ranks 20th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 23rd in Minnesota
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2013, Minnesota taxpayers worked until April 23rd (7th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Wisconsin, April 20th (ranked 11th latest nationally); Iowa, April 9th (ranked 17th earliest nationally); North Dakota, April 18th (ranked 14th latest nationally); and South Dakota, April 4th (ranked 6th earliest nationally).
Minnesota's State and Local Tax Burden Above National Average
Minnesota's 2010 tax burden of 10.79% ranks 7th highest out of 50 states, and is above the national average of 9.9%. Minnesota's taxpayers pay $4727 per capita in state and local taxes.
Minnesota's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Minnesota's 2013 Business Tax Climate Index Ranks 45
Minnesota ranks 45th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Wisconsin, 43rd, Iowa, 42nd, North Dakota, 28th, and South Dakota, 2nd.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)
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