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?


Related Articles

Minnesota’s State and Local Tax Burden

October 23, 2012

Santa Clara County vs. the San Francisco 49ers: The Battle for Stadium Financing

June 25, 2012

Like the Vikings of Old: Pillaging Minnesota’s Budget

May 23, 2012

Minnesota Governor Dayton Cites Tax Foundation Study in State of the State Address

February 16, 2012

Minnesota’s Surplus of Optimism

January 17, 2012

Minnesota Shutdown Ends, Leaving Lessons for Other States

July 21, 2011

Minnesota Government Shutdown Means Lottery Winners Are Out of Luck

July 5, 2011

Minnesota State Government Shutdown: Day 1

July 1, 2011

Minnesota Income Tax Increase Modification Could Encourage Tax Avoidance and Promote Poor Investment Decisions

June 29, 2011

Budget Brinksmanship in Minnesota Could Lead to a State Government Shutdown

June 29, 2011

Minnesota Vikings Hope for a Publicly Funded Stadium

April 13, 2011

VIdeo: Tax Foundation President Scott Hodge Testifies to Minnesota Legislature on Corporate Tax Reform

February 1, 2011

Tax Foundation Experts Testifying in California, Indiana, and Minnesota

January 31, 2011

Minnesota and Wisconsin Spar over Cross-Border Income Taxes

January 25, 2011

Maybe Caterpillar Should Move to Minnesota

January 12, 2011

Governors Oppose Millionaire’s Tax Proposals in Minnesota and New Jersey

May 14, 2010

Minnesota Considers Sports Memorabilia and Hotel Tax to Fund Stadium

May 7, 2010

Minnesota, Vermont, Virginia, and Pennsylvania Celebrate Tax Freedom Day

April 13, 2010

State Spending Limits are Consistent with Good Government

December 18, 2009

More Updated State Tax Rate Tables: Sales, Excise, and Corporate Income Taxes

July 16, 2009