Taxes in Minnesota

Minnesota Tax Rates, Collections, and Burdens

How does Minnesota’s tax code compare? Minnesota has a graduated individual income tax, with rates ranging from 5.35 percent to 9.85 percent. Minnesota also has a 9.80 percent corporate income tax rate. Minnesota has a 6.875 percent state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of 7.49 percent. Minnesota’s tax system ranks 45th overall on our 2022 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. Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

Top Individual Income Tax Rate

9.85%

See Full Study

State and Local Individual Income Tax Collections per Capita

$2135

Click for a comparative tax map!

State and Local Tax Burden

12.1%

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

9.80%

See Full Study

State Business Tax Climate Index Ranking

45

See Full Study

State Sales Tax Rate

6.875%

Click for a comparative tax map!
See Full Study

Average Local Sales Tax Rate

0.61%

See Full Study

Combined State and Average Local Sales Tax Rate

7.49%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$1152

Click for a comparative tax map!

State Gasoline Tax Rate (cents per gallon)

30.6¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$3.703

Click for a comparative tax map!

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

1.10%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$1727

Click for a comparative tax map!

Featured Articles

State Sales Tax Breadth and Reliance, Fiscal Year 2021

May 4, 2022

State and Local Tax Burdens, Calendar Year 2022

April 7, 2022

State Legislatures Take Up Tax Reform and Relief in 2022

March 29, 2022

Facts & Figures 2022: How Does Your State Compare?

March 29, 2022

State Individual Income Tax Rates and Brackets for 2022

February 15, 2022

State and Local Sales Tax Rates, 2022

February 3, 2022

Related Articles

Ranking Property Taxes on the 2022 State Business Tax Climate Index

May 10, 2022

State Sales Tax Breadth and Reliance, Fiscal Year 2021

May 4, 2022

Ranking Unemployment Insurance Taxes on Our 2022 State Business Tax Climate Index

April 26, 2022

State and Local Tax Burdens, Calendar Year 2022

April 7, 2022

State Legislatures Take Up Tax Reform and Relief in 2022

March 29, 2022

Facts & Figures 2022: How Does Your State Compare?

March 29, 2022

Ranking Individual Income Taxes on the 2022 State Business Tax Climate Index

March 15, 2022

Ranking Corporate Income Taxes on the 2022 State Business Tax Climate Index

March 1, 2022

State Individual Income Tax Rates and Brackets for 2022

February 15, 2022

State and Local Sales Tax Rates, 2022

February 3, 2022

State Corporate Income Tax Rates and Brackets for 2022

January 18, 2022

Net Operating Loss Provisions: State Treatment and the Economic Benefits

January 13, 2022

Eight Tax Reforms for Mobility and Modernization

January 5, 2022

Americans Moved to Low-Tax States in 2021

January 4, 2022

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

December 16, 2021

2022 State Business Tax Climate Index

December 16, 2021

Cigarette Taxes and Cigarette Smuggling by State, 2019

December 2, 2021

Corporations in Most States Would Face Income Tax Rate Exceeding 30 Percent Under Ways and Means Proposal

September 15, 2021

Where Do People Pay the Most in Property Taxes?

September 1, 2021

Reviewing Benefits of the State and Local Tax Deduction by County in 2018

August 25, 2021