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 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

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

New Report: Minnesota Governor Proposes Disappointing Tax Plan

February 13, 2013

Minnesota Governor Proposes Poorly-Designed Tax “Reform”

February 12, 2013

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