-
Overall Rank
41
Up 2 places since 2026 -
41
Up 1 place since 2026 -
41
Up 3 places since 2026 -
32
No change since 2026 -
25
Down 4 places since 2026 -
Unemployment Insurance Tax Rank
44
No change since 2026
Minnesota ranks 41st overall on the 2027 State Tax Competitiveness Index.
Score 4.49 / 10
About Minnesota's Tax Code
Minnesota ranks uncompetitively on the Index and is held back by its graduated state individual income tax with a top rate of 9.85 percent, among the highest in the country. Its taxpayers are also subject to alternative minimum taxes under both the individual and corporate income tax codes, adding complexity to the code. The state imposes a 1 percent high earner net investment income surtax, which applies to long-term capital gains, interest, dividends, and other investment income. As a result, taxpayers subject to the tax face a higher effective marginal rate on long-term capital gains income than on ordinary income.
Minnesota also has high sales tax rates, with a 6.875 percent state sales tax rate and an average combined state and local sales tax rate of 8.14 percent. Minnesota’s effective property tax rate on owner-occupied housing value is on the high side, and its split roll system imposes higher taxes on businesses and renters. Minnesota also has a 9.8 percent corporate income tax rate, one of the highest in the country. The state only allows 15 years of net operating loss (NOL) carryforwards, less generous than most states’ rules, which either offer 20-year or unlimited carryforwards. Additionally, Minnesota does not conform to the federal deductions for bonus depreciation under Section 168(k), nor does it conform to full expensing for research and experimentation expenses under Section 174A, making the state less attractive for businesses that make significant investments in machinery, equipment, and research and development.
Minnesota recently implemented a tax on global intangible low-taxed income (GILTI), which transitioned to a tax on net CFC tested income (NCTI) under the One Big Beautiful Bill Act (OBBBA). This tax on the international income of the subsidiaries of US-based multinational corporations is highly uncompetitive and has nothing to do with a company’s activities in the state (or even in the US). Minnesota is also in the minority of states to still impose an estate tax on bequeathed property, imposing the tax with a top rate of 16 percent. Among the bright spots in Minnesota’s tax code are its conformity to Section 179 and the fact that the state only partially taxes tangible personal property.
Component Scores
#41 overall · 4.49 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #41 | 4.49 / 10 | |
| Individual Income Taxes | #41 | 4.41 / 10 | |
| Sales Taxes | #32 | 4.38 / 10 | |
| Property Taxes | #25 | 5.11 / 10 | |
| Unemployment Insurance Taxes | #44 | 4.11 / 10 |
Ranking Changes, 2020–2027
#41 in 2027 · up 5 places from 2020Minnesota ranked 46th in 2020 and ranks 41st in 2027, an improvement of 5 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 46 (4.52) | 41 (4.69) | 44 (4.12) | 30 (4.61) | 29 (5.07) | 43 (4.30) |
| 2021 | 46 (4.49) | 41 (4.68) | 45 (4.02) | 30 (4.63) | 30 (5.10) | 42 (4.27) |
| 2022 | 45 (4.54) | 41 (4.67) | 44 (4.24) | 28 (4.64) | 29 (5.11) | 45 (4.16) |
| 2023 | 44 (4.50) | 42 (4.63) | 44 (4.22) | 31 (4.59) | 28 (5.08) | 45 (4.07) |
| 2024 | 41 (4.52) | 43 (4.48) | 44 (4.28) | 28 (4.59) | 29 (5.04) | 42 (4.34) |
| 2025 | 41 (4.51) | 43 (4.51) | 44 (4.29) | 34 (4.33) | 16 (5.38) | 42 (4.27) |
| 2026 | 43 (4.41) | 42 (4.47) | 44 (4.17) | 32 (4.35) | 21 (5.22) | 44 (4.06) |
| 2027 | 41 (4.49) | 41 (4.49) | 41 (4.41) | 32 (4.38) | 25 (5.11) | 44 (4.11) |
Minnesota Compared across the States
#41 overallEach row places the states on a 0 to 10 score scale for one measure. Minnesota is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#41 4.49
Corporate Taxes
#41 4.49
Individual Income Taxes
#41 4.41
Sales Taxes
#32 4.38
Property Taxes
#25 5.11
Unemployment Insurance Taxes
#44 4.11
- Minnesota
- Other states, by rank (1st to 50th)
- 50-state median
Minnesota and Its Neighbors
#41 overallMinnesota borders 4 states and ranks 41st overall; every one of them ranks higher.
-
South Dakota #2 Score 7.56 39 places better -
North Dakota #12 Score 5.57 29 places better -
Iowa #18 Score 5.35 23 places better -
Wisconsin #20 Score 5.33 21 places better -
Minnesota #41 Score 4.49 This state
What Each Component Includes
The five components of the Index, what each one covers, and where Minnesota lands. Open any component for the full breakdown.
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Corporate Taxes
Rank #41Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Minnesota → -
Individual Income Taxes
Rank #41Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Minnesota → -
Sales Taxes
Rank #32Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Minnesota → -
Property Taxes
Rank #25Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Minnesota → -
Unemployment Insurance Taxes
Rank #44Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Minnesota →
Tax Data Explorer
Every policy variable behind Minnesota's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
149 data points · Shaded values differ from Minnesota
Corporate Taxes: Corporate Income Tax Rates
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Bracket 1 | 9.8% > $0 | 5.5% > $0 (differs) | 1.41% > $0 (differs) | None (differs) | 7.9% > $0 (differs) |
| Bracket 2 | n.a. | 7.1% > $100,000 (differs) | 3.55% > $25,000 (differs) | n.a. | n.a. |
| Bracket 3 | n.a. | n.a. | 4.31% > $50,000 (differs) | n.a. | n.a. |
| Gross Receipts Tax | No | No | No | No | No |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Job Credits | No | Yes (differs) | No | No | Yes (differs) |
| Research and Development Credits | Yes | Yes | Yes | No (differs) | Yes |
| Investment Credits | Yes | Yes | Yes | No (differs) | Yes |
| Compensation Expenses Deductible | n.a. | n.a. | n.a. | n.a. | n.a. |
| Cost of Goods Sold Deductible | n.a. | n.a. | n.a. | n.a. | n.a. |
Corporate Taxes: Net Operating Losses
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Conforms to Federal NOL Treatment | No | Yes (differs) | Yes (differs) | n.a. (differs) | No |
| Carryback (Years) | 0 | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | n.a. (differs) | 0 |
| Carryback Cap | $0 | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | n.a. (differs) | $0 |
| Carryforward (Years) | 15 | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | n.a. (differs) | 20 (differs) |
| Carryforward Cap | 70% | Conforms to federal treatment (differs) | Conforms to federal treatment (differs) | n.a. (differs) | Unlimited (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Section 168(k) Expensing | 20% | 100% (differs) | 100% (differs) | 100% (differs) | 0% (differs) |
| Conforms to Section 163(j) Limitation | Yes | No (differs) | Yes | No (differs) | No (differs) |
| GILTI Inclusion | 50% Inclusion | Decouples (differs) | 30% Inclusion (differs) | n.a. (differs) | Decouples (differs) |
| Section 174 Expensing | No | Yes (differs) | Yes (differs) | Yes (differs) | Yes (differs) |
| Section 168(n) Expensing | Yes | Yes | Yes | Yes | No (differs) |
Corporate Taxes: Other Corporate Base Variables
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | n.a. (differs) | Yes |
| Conformity Status | Static (current) | Rolling (differs) | Rolling (differs) | n.a. (differs) | Static (not current) (differs) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes | Yes | n.a. (differs) | Yes |
| Allows Federal Depletion | Partial | Yes (differs) | Yes (differs) | n.a. (differs) | Yes (differs) |
| Throwback Rule | No | No | Yes (differs) | n.a. (differs) | Yes (differs) |
| Foreign Tax Deductibility | No | Yes (differs) | No | n.a. (differs) | No |
| Corporate AMT | Yes | No (differs) | No (differs) | n.a. (differs) | No (differs) |
| Brackets Indexed for Inflation | Flat CIT | No (differs) | No (differs) | n.a. (differs) | Flat CIT |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Bracket 1 | 5.35% > $0 | 3.8% > $0 (differs) | 1.95% > $49,575 (differs) | No Income Tax (differs) | 3.5% > $0 (differs) |
| Bracket 2 | 6.8% > $33,310 | n.a. (differs) | 2.5% > $250,400 (differs) | n.a. (differs) | 4.4% > $14,680 (differs) |
| Bracket 3 | 7.85% > $109,430 | n.a. (differs) | n.a. (differs) | n.a. (differs) | 5.3% > $50,480 (differs) |
| Bracket 4 | 9.85% > $203,150 | n.a. (differs) | n.a. (differs) | n.a. (differs) | 7.65% > $323,290 (differs) |
| Standard Deduction (Single Filer) | $15,300 | $16,100 (differs) | $16,100 (differs) | n.a. (differs) | $13,960 (differs) |
| Personal Exemption (Single Filer) | n.a. | n.a. | n.a. | n.a. | $700 (differs) |
| Personal Exemption Credit (Single Filer) | n.a. | $40 (differs) | n.a. | n.a. | n.a. |
| Personal Exemption per Dependent | $5,300 | n.a. (differs) | n.a. (differs) | n.a. (differs) | $700 (differs) |
| Personal Exemption Credit per Dependent | n.a. | $40 (differs) | n.a. | n.a. | n.a. |
| Average Local Income Tax Rate | None | 0.10% (differs) | None | None | None |
| Surtaxes on Wage Income | n.a. | n.a. | n.a. | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Marriage Penalty | Yes | No (differs) | Yes | n.a. (differs) | Yes |
| Married Couples Can File Separately on One Return | No | Yes (differs) | No | n.a. (differs) | No |
| Convenience Rule | No | No | No | No | No |
| Interest Taxed | Yes | Yes | Yes | n.a. (differs) | Yes |
| Dividends Taxed | Yes | Yes | Yes | n.a. (differs) | Yes |
| Capital Gains Taxed | Yes | Yes | Yes | n.a. (differs) | Yes |
| Combined Capital Gains Tax Rate | 10.85% | 3.943% (differs) | 1.5% (differs) | n.a. (differs) | 5.355% (differs) |
| Tax Brackets Indexed for Inflation | Yes | Yes | Yes | n.a. (differs) | Yes |
| Standard Deduction Indexed for Inflation | Yes | Yes | Yes | n.a. (differs) | Yes |
| Personal Exemption Indexed for Inflation | Yes | No (differs) | Yes | n.a. (differs) | No (differs) |
| Progressivity Ratio | 1.45 | 1.00 (differs) | 1.00 (differs) | n.a. (differs) | 1.74 (differs) |
Individual Income Taxes: Other Individual Base Variables
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes | Yes | n.a. (differs) | Yes |
| Conformity Status | Static (current) | Rolling (differs) | Rolling (differs) | n.a. (differs) | Static (not current) (differs) |
| Credits for Taxes Paid to Other States | Yes | Yes | Yes | n.a. (differs) | Yes |
| AMT Levied | Yes | No (differs) | No (differs) | n.a. (differs) | No (differs) |
| Recognition of S Corporation Status | Yes | Yes | Yes | Yes | Yes |
| Section 179 Expensing Limit | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 | $2,560,000 |
| Tips | Taxable | Exempt (differs) | Exempt (differs) | n.a. (differs) | Taxable |
| Overtime | Taxable | Exempt (differs) | Exempt (differs) | n.a. (differs) | Taxable |
| Filing and Withholding Threshold Index | 5 | 0.565 (differs) | 3.333 (differs) | 10 (differs) | 2.263 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Income Recapture | No | No | No | n.a. (differs) | No |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| State Sales Tax Rate | 6.88% | 6.00% (differs) | 5.00% (differs) | 4.20% (differs) | 5.00% (differs) |
| Average Local Sales Tax Rate | 1.26% | 0.94% (differs) | 2.09% (differs) | 1.91% (differs) | 0.72% (differs) |
| Maximum Local Sales Tax Rate | 3.00% | 2.00% (differs) | 3.75% (differs) | 4.50% (differs) | 2.90% (differs) |
| Gasoline Tax (Cents per Gallon) | 32.70 | 30.00 (differs) | 23.03 (differs) | 30.00 (differs) | 32.90 (differs) |
| Diesel Tax (Cents per Gallon) | 32.7 | 32.5 (differs) | 23.03 (differs) | 30 (differs) | 32.9 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $3.88 | $1.36 (differs) | $0.44 (differs) | $1.53 (differs) | $2.52 (differs) |
| Beer Tax (Dollars per Gallon) | $0.47 | $0.19 (differs) | $0.43 (differs) | $0.2742 (differs) | $0.0645 (differs) |
| Spirits Tax (Dollars per Gallon) | $8.74 | $15.14 (differs) | $4.93 (differs) | $4.93 (differs) | $3.25 (differs) |
| Vapor Tax Ratio to Cigarette Tax | 248.5833% | n.a. (differs) | n.a. (differs) | n.a. (differs) | 5.00% (differs) |
Sales Taxes: Business-to-Business Exemptions
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Business Inputs | Some Taxable | Some Taxable | Some Taxable | Some Taxable | Some Taxable |
| Farm Equipment | Exempt | Exempt | Partial (differs) | Taxable (differs) | Exempt |
| Office Equipment | Taxable | Taxable | Taxable | Taxable | Taxable |
| Manufacturing Machinery | Exempt | Exempt | Taxable (differs) | Taxable (differs) | Exempt |
| Manufacturing Raw Materials | Exempt | Exempt | Exempt | Exempt | Exempt |
| Business Fuel and Utilities | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Business Leases and Rentals | Taxable | Taxable | Taxable | Taxable | Taxable |
| Information Services | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Software as a Service (SaaS) | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Platform as a Service (PaaS) | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Digital B2B Products | Taxable | Exempt (differs) | Exempt (differs) | Taxable | Exempt (differs) |
| Payroll Services | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Data Center Purchases | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Digital Advertising Tax | No | No | No | No | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Groceries | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Clothing | Exempt | Taxable (differs) | Taxable (differs) | Taxable (differs) | Taxable (differs) |
| Prescription Medication | Exempt | Exempt | Exempt | Exempt | Exempt |
| Nonprescription Medication | Exempt | Taxable (differs) | Taxable (differs) | Taxable (differs) | Taxable (differs) |
| Gasoline | Exempt | Exempt | Exempt | Exempt | Exempt |
| Landscaping | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Repair Services | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Taxable (differs) |
| Real Estate Services | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Parking | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Dry Cleaning | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Fitness Services | Taxable | Taxable | Exempt (differs) | Taxable | Exempt (differs) |
| Barber Services | Exempt | Taxable (differs) | Exempt | Taxable (differs) | Exempt |
| Veterinary Services | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| E-Books | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Streaming Video | Taxable | Taxable | Exempt (differs) | Taxable | Taxable |
| Medical Services | Exempt | Exempt | Exempt | Exempt | Exempt |
| Legal Services | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Financial Services | Exempt | Taxable (differs) | Exempt | Exempt | Exempt |
| Accounting Services | Exempt | Exempt | Exempt | Taxable (differs) | Exempt |
| Sales Tax Holiday | No | Yes (differs) | No | No | No |
Sales Taxes: Sales Tax Structure
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Uniform Base Definitions | Yes | Yes | Yes | Yes | Yes |
| Unified Tax Administration | Yes | Yes | Yes | Yes | Yes |
| Safe Harbor for Remote Sellers | Sales or Transactions Threshold | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) | Gross Sales Threshold (differs) |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Property Tax Collections per Capita | $2,041 | $2,104 (differs) | $1,684 (differs) | $1,864 (differs) | $1,905 (differs) |
| Property Tax as a Percentage of Personal Income | 2.70% | 3.22% (differs) | 2.34% (differs) | 2.47% (differs) | 2.81% (differs) |
| Assessment Limit | No | Yes (differs) | Yes (differs) | Yes (differs) | No |
| Levy Limit | No | No | Yes (differs) | Yes (differs) | Yes (differs) |
| Capital Stock Tax Rate | None | None | None | None | None |
| Capital Stock Tax Maximum Payment | n.a. | n.a. | n.a. | n.a. | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. | n.a. | n.a. | n.a. | n.a. |
Property Taxes: Property Tax Bases
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Tangible Personal Property Tax | Partial | No (differs) | Partial | Partial | No (differs) |
| Tangible Personal Property De Minimis Exemption | n.a. | n.a. | n.a. | n.a. | n.a. |
| Intangible Property Tax | No | Yes (differs) | No | Yes (differs) | No |
| Inventory Tax | No | No | No | No | No |
| Real Estate Transfer Tax | Yes | Yes | No (differs) | Yes | Yes |
| Split Roll | Yes | Yes | Yes | Yes | No (differs) |
| Split Roll Ratio | 2.00 | 2.02 (differs) | 1.11 (differs) | 1.23 (differs) | 1.00 (differs) |
| Estate Tax | 16% | No (differs) | No (differs) | No (differs) | No (differs) |
| Inheritance Tax | No | No | No | No | No |
| Gift Tax | No | No | No | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Minimum Rate | 0.40% | 0.00% (differs) | 0.07% (differs) | 0.00% (differs) | 0.00% (differs) |
| Maximum Rate | 9.30% | 5.40% (differs) | 9.67% (differs) | 9.13% (differs) | 12.00% (differs) |
| Taxable Wage Base | $44,000 | $20,400 (differs) | $46,600 (differs) | $15,000 (differs) | $14,000 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.10% | 0.00% (differs) | 0.01% (differs) | 0.00% (differs) | 0.00% (differs) |
| Most Favorable Schedule: Maximum Rate | 9.00% | 7.00% (differs) | 5.40% (differs) | 9.30% (differs) | 10.70% (differs) |
| Least Favorable Schedule: Minimum Rate | 0.40% | 0.00% (differs) | 0.01% (differs) | 0.00% (differs) | 0.07% (differs) |
| Least Favorable Schedule: Maximum Rate | 9.40% | 9.00% (differs) | 5.40% (differs) | 9.45% (differs) | 10.70% (differs) |
| Employer Contributions as a Share of Total Wages | 0.44% | 0.53% (differs) | 0.41% (differs) | 0.10% (differs) | 0.37% (differs) |
| Employer Contributions as a Share of Taxable Wages | 0.90% | 0.97% (differs) | 0.71% (differs) | 0.33% (differs) | 1.50% (differs) |
| Trust Fund Solvency Ratio | 0.3 | 1.54 (differs) | 1.03 (differs) | 1.7 (differs) | 0.79 (differs) |
| New Employer Rate | 3.00% | 3.00% | 1.00% (differs) | 1.20% (differs) | 3.25% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Experience Formula Based On | Benefits Ratio | Benefits Ratio | Reserve Ratio (differs) | Reserve Ratio (differs) | Reserve Ratio (differs) |
| Benefits Charged in Proportion to Base-Period Wages | Yes | No (base-period employers in inverse chronological order) (differs) | Yes | No (base-period employers in inverse chronological order) (differs) | Yes |
| Charged If Employee's Benefit Award Is Reversed | No | No | No | No | Yes (differs) |
| Charged for Reimbursements on Combined Wage Claims | No | No | Yes (differs) | Yes (differs) | No |
| Charged If Employee Left Voluntarily | No | No | No | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No | No | No | No |
| Charged If Employee Refused Suitable Work | Yes | No (differs) | Yes | Yes | No (differs) |
| Charged If Employee Continues to Work Part-Time | No | No | No | Yes (differs) | Yes (differs) |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Minnesota | Iowa | North Dakota | South Dakota | Wisconsin |
|---|---|---|---|---|---|
| Solvency Tax | Yes | No (differs) | No (differs) | Yes | Yes |
| Taxes for Socialized Costs or Negative Balance Employers | No | No | No | No | No |
| Loan and Interest Repayment Surtaxes | Yes | Yes | No (differs) | No (differs) | Yes |
| Reserve Taxes | No | Yes (differs) | No | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | Yes | No (differs) | No (differs) | Yes | Yes |
| Temporary Disability Insurance | No | No | No | No | No |
| Voluntary Contributions | Yes | No (differs) | Yes | Yes | Yes |
| Years to Qualify for Experience Rating | 1 | 3 (differs) | 1 | 2 (differs) | 3 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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