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

$1900

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State and Local Tax Burden

10.8%

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Tax Freedom Day

April 30

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Top Corporate Income Tax Rate

9.80%

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State Business Tax Climate Index Ranking

46

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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

6.43%

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State and Local General Sales Tax Collections per Capita

$1026

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

1.12%

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State and Local Property Tax Collections Per Capita

$1534

Featured Articles

2019 State Business Tax Climate Index

September 26, 2018

2018 State Business Tax Climate Index

October 17, 2017

Testimony: Reforming the Estate Tax in Minnesota

January 27, 2017

Minnesota Illustrated: A Visual Guide to Taxes & The Economy

January 25, 2017

Vapor Products and Tax Policy

March 22, 2016

Related Articles

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

2018 State Business Tax Climate Index

October 17, 2017

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

Vapor Products and Tax Policy

March 22, 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

Minnesota Governor Proposes to Eliminate Business-to-Business Taxes, Gift Tax, Marriage Penalty

March 12, 2014

Fiscal Times Features Best and Worst States for Taxes

January 29, 2014