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

New Podcast: Peter Nelson of the Center of the American Experiment – Budget and Tax Reform in Minnesota

February 11, 2009

Tax Foundation Data Cited by Government Officials in California, South Carolina, Minnesota, and Rhode Island

January 16, 2009

State Budgets: Minnesota Cuts to Balance Current Budget; Seeks Input for Next Budget

December 29, 2008

Best of the Blogosphere: From Corporate to Property Taxes, From Colorado to Rhode Island

December 8, 2008

Even in the World of Tax Policy, There’s Something to Be Thankful For

November 26, 2008

Minnesota Raises Gas Tax

February 27, 2008

Minneapolis Mayor Says Too Little Transportation Spending in America

September 6, 2007

Minnesota’s Fiscal Priorities: Too Bad Bridge-Building Isn’t a Sport

September 6, 2007

Don Young Suggests Possible Increase in Federal Gas Tax

August 9, 2007

Minneapolis Fed on Tax Incentives for Film Companies

September 11, 2006