![Minnesota city where there is an Uncompetitive Tax Code that needs Improvement](https://taxfoundation.org/wp-content/uploads/2018/10/minnesota-300x196.jpg)
Minnesota Tax Rates, Collections, and Burdens
How does Minnesota’s tax code compare? Minnesota has a graduated state individual income tax, with rates ranging from 5.35 percent to 9.85 percent. Minnesota has a 9.8 percent corporate income tax rate. Minnesota also has a 6.875 percent state sales tax rate and an average combined state and local sales tax rate of 8.04 percent. Minnesota has a 0.98 percent effective property tax rate on owner-occupied housing value.
Minnesota has an estate tax. Minnesota has a 28.6 cents per gallon gas tax rate and a $3.732 cigarette excise tax rate. The State of Minnesota collects $7,451 in state and local tax collections per capita. Minnesota has $9,980 in state and local debt per capita and has a 75 percent funded ratio of public pension plans. Overall, Minnesota’s tax system ranks 44th on our 2024 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Minnesota is no exception. The first step towards understanding Minnesota’s tax code is knowing the basics. How does Minnesota collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
State Tax Data
Individual Taxes
Business Taxes
Sales Taxes
All Related Articles
![Minnesota city where there is an Uncompetitive Tax Code that needs Improvement](https://taxfoundation.org/wp-content/uploads/2018/10/minnesota-300x196.jpg)
![2019 State Business Tax Climate Index](https://taxfoundation.org/wp-content/uploads/2018/09/SBTCI-2019-featured-01-300x287.png)
2019 State Business Tax Climate Index
Our 2019 State Business Tax Climate Index compares each state on over 100 variables including corporate, individual, property, and sales taxes. How does your state rank?
17 min read![Minnesota](https://taxfoundation.org/wp-content/uploads/2017/03/Minnesota2-300x161.jpg)
![Minnesota State Capitol Northeast](https://taxfoundation.org/wp-content/uploads/2017/06/Minnesota_State_Capitol_from_northeast_5-e1529342274227-300x205.jpg)
Minnesota’s Tax Plans Make Modest Improvements
In response to the new federal tax law, the governor and lawmakers in both houses have proposed plans for updating Minnesota’s tax code.
2 min read![Minnesota tax](https://taxfoundation.org/wp-content/uploads/2017/01/Minnesota-300x150.jpg)
![Minnesota tax](https://taxfoundation.org/wp-content/uploads/2017/01/Minnesota-300x150.jpg)
Governor Dayton’s Budget Proposal: Some Pro-Growth Provisions, but Misses the Mark on Others
The proposal includes some good reforms, including conforming to the federal full expensing provision, but also rolls back some recent positive changes.
2 min read![Minnesota State Capitol Northeast](https://taxfoundation.org/wp-content/uploads/2017/06/Minnesota_State_Capitol_from_northeast_5-e1529342274227-300x205.jpg)
![Minnesota](https://taxfoundation.org/wp-content/uploads/2017/03/Minnesota2-300x161.jpg)
Multiple Tax Proposals in Minnesota
4 min read![](https://taxfoundation.org/wp-content/uploads/2017/01/MorganTestimony-300x225.jpg)
![](https://taxfoundation.org/wp-content/uploads/2017/01/MN-Cover-e1529342970497-300x234.png)