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. How does Minnesota collect tax revenue? 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?

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

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

Minnesota: Higher Income and Cigarette Tax Making It the Land of 10,000 Taxes?

July 3, 2013

Minnesota Budget Deal Includes $2 Billion Tax Hike

May 15, 2013

Minneapolis Star Tribune Editorial Board Warns Legislators Against Higher Taxes on High-Income Earners

March 27, 2013

Minnesota Governor Drops Reform Parts of Tax Reform Proposal

March 18, 2013

States Cracking Down on People Fleeing High Taxes

March 14, 2013

Minnesota Governor Proposes Poorly-Designed Tax “Reform”

February 12, 2013

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