Taxes in Minnesota

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Minnesota’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

9.85%

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State and Local Individual Income Tax Collections per Capita

$1957

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State and Local Tax Burden

10.8%

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Tax Freedom Day

April 25

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Top Corporate Income Tax Rate

9.80%

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State Business Tax Climate Index Ranking

43

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State Sales Tax Rate

6.875%

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Average Local Sales Tax Rate

0.55%

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Combined State and Average Local Sales Tax Rate

7.43%

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State and Local General Sales Tax Collections per Capita

$1056

State Gasoline Tax Rate (cents per gallon)

28.6¢

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State Cigarette Tax Rate (dollars per 20-pack)

$3.04

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

1.06%

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State and Local Property Tax Collections Per Capita

$1567

Featured Articles

2019 State Business Tax Climate Index

September 26, 2018

Testimony: Reforming the Estate Tax in Minnesota

January 27, 2017

Minnesota Illustrated: A Visual Guide to Taxes & The Economy

January 25, 2017

Related Articles

Minnesota Policymakers Strike Tax Conformity Deal

June 11, 2019

Minnesota House and Senate at Odds Over Gas Tax Increase

May 6, 2019

Minnesota Considers $1.35 Billion Biennial Tax Increase

April 23, 2019

Facts and Figures 2019: How Does Your State Compare?

March 19, 2019

Minnesota’s Uncompetitive Tax Code Warrants Improvement

October 2, 2018

2019 State Business Tax Climate Index

September 26, 2018

Governor Dayton Vetoes Minnesota’s Conformity Bill

May 17, 2018

Minnesota’s Tax Plans Make Modest Improvements

May 2, 2018

A Measured Approach to Income Tax Relief in Minnesota

April 19, 2018

Governor Dayton’s Budget Proposal: Some Pro-Growth Provisions, but Misses the Mark on Others

March 21, 2018

Minnesota Budget Squabbles Might Spur Lawsuit

June 8, 2017

Multiple Tax Proposals in Minnesota

March 22, 2017

Testimony: Reforming the Estate Tax in Minnesota

January 27, 2017

Minnesota Illustrated: A Visual Guide to Taxes & The Economy

January 25, 2017

Lunch Links: EU Approves Tax Haven Resolution; States Calling Special Sessions; Dittos in Illinois

June 8, 2016

Lunch Links: Minnesota Tax Bill Held Up by Grammar; Puerto Rico May Void $4 Billion of Debt; Kansas Revenues Off Again

June 3, 2016

Minnesota Defers Decision on Tax Cuts to Next Year

June 18, 2015

Minnesota House Passes $2 Billion Tax Cut, But Offers Little Structural Reform

April 30, 2015

Michigan Future Misses the Mark

June 19, 2014

Minnesota Enacts $443 Million Tax Reduction Package

April 25, 2014