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?


Related Articles

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

Governor Tim Pawlenty (R-MN) Cites Data on Federal Taxes Paid vs. Spending Received on Fox News

March 12, 2009

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

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

September 6, 2007

Minneapolis Mayor Says Too Little Transportation Spending in America

September 6, 2007

Don Young Suggests Possible Increase in Federal Gas Tax

August 9, 2007