Minnesota has a 4-bracket progressive income tax with rates of 5.35%, 6.8%, 7.85%, and 9.85% (top rate). At $100K income, a single filer taking the standard deduction pays an effective rate of 5.3% ($5,277 state tax). The 9.85% top rate applies to income over $203,150 for single filers, making Minnesota the 6th-highest top rate among states (California 13.3%, Hawaii 11%, New York 10.9%, New Jersey 10.75% and Oregon 9.9% are higher).
The Minnesota tax philosophy - high taxes, high services: Minnesota's top rate is among the highest in the country, and the state funds a broad set of public services with it. In U.S. News & World Report's 2025 Best States ranking, Minnesota placed 4th overall (7th in opportunity, 28th in economy). Rankings vary by publisher, year and category, and whether the services justify the tax is a personal judgement that this calculator cannot measure.
How it compares regionally:
Minnesota's 2026 brackets (single filers):
Source: Minnesota Department of Revenue - Individual Income Tax
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: Minnesota Department of Revenue
Here's what Minnesota residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $1,877 | $5,697 | $44,303 | 11.4% |
| $75,000 | $7,670 | $3,577 | $11,247 | $63,753 | 15.0% |
| $100,000 | $13,170 | $5,277 | $18,447 | $81,553 | 18.4% |
| $150,000 | $24,734 | $8,942 | $33,676 | $116,324 | 22.5% |
| $250,000 | $51,304 | $17,439 | $68,743 | $181,257 | 27.5% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Minnesota takes $5,277 in state tax alone.
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Migration: The U.S. Census Bureau publishes state-to-state migration flows by year (link below). We do not quote specific flow counts here because they change each year and we have not verified a current figure. Tax is only one factor in a move: Florida and Texas (both 0% wage income tax) are common comparison points for people weighing a move away from Minnesota.
Why people move to Minnesota:
Why people leave Minnesota:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Minnesota |
|---|---|---|---|
| Minnesota | 5.35-9.85% | $5,277 | Baseline |
| South Dakota | 0% | $0 | −$5,277 (save) |
| North Dakota | 0-1.95% | $653 | −$4,624 (save) |
| Wisconsin | 3.5-7.65% | $4,428 | −$849 (save) |
| Iowa | 3.8% flat | $3,188 | −$2,089 (save) |
Key insight: Minnesota has the highest taxes among all neighboring states. At $100K income, MN residents pay $849-$5,277 more than neighbors. At $150K, MN pays more still. The question: are MN's public services worth the higher taxes?
The South Dakota arbitrage - massive savings but tradeoffs:
The Wisconsin border (Hudson WI):
Bottom line: Minnesota's "high tax, high service" value proposition:
Result: Whether Minnesota's higher taxes are worth it depends on how much you value its public services. If tax savings matter more, SD, WI, TX and FL cost less in state income tax; at $100K the difference is $849-$5,277 per year.
Minnesota's 9.85% top rate (6th-highest among states) funds state and local services, including school aid and health and social programmes. Rankings of those services differ by publisher and year - U.S. News & World Report's 2025 Best States put Minnesota 4th overall (7th in opportunity, 28th in economy) - and whether they are worth the higher taxes is a personal judgement. Low-tax states like Texas (0% income tax) make a different trade-off: no income tax, but a higher average property tax rate (1.40% vs 1.00% in Minnesota).
It depends on your income source and priorities. South Dakota has 0% income tax (save $5,277/year at $100K, ~$12,867 at $200K). But: Sioux Falls is a much smaller job market than the Twin Cities. Best for: remote workers/retirees not dependent on SD job market, willing to sacrifice services (schools, healthcare, culture) for tax savings. Not ideal for: families with kids who value Minnesota's schools, professionals needing robust job market, people who value urban amenities. Break-even: If you earn $150K+ working remotely and can live in Sioux Falls, save $8K+/year. If you need Twin Cities job market, MN's taxes are worth paying.
Generally not for wages earned in Minnesota. Minnesota and Wisconsin have had no income tax reciprocity agreement since January 1, 2010. A Wisconsin resident working in Minnesota files a Minnesota nonresident return and a Wisconsin return, and Wisconsin allows a credit for the net income tax paid to Minnesota on income taxed by both states, so living in Hudson (30 min to St. Paul, 45 min to Minneapolis) generally does not lower state income tax on Minnesota wages. Wisconsin's own rates (3.5-7.65%) apply to income not taxed by Minnesota, such as remote work performed from Wisconsin. Trade-offs of living in Hudson: 60-90 min/day commute, smaller-town life (Hudson 14K pop), fewer city amenities.
Partially. Social Security: fully subtractable if federal AGI is under $86,410 (single) or $110,780 (married filing jointly) for 2026; above these thresholds the subtraction phases out. Pension/401k: taxable at 5.35-9.85% rates, but MN offers subtractions for some pensions (varies by type). Minnesota has a state estate tax ($3,000,000 exclusion for 2025 decedents) but no inheritance tax. Overall, how Minnesota treats you as a retiree depends on how much of your income is pension or 401(k) money, which Minnesota taxes at ordinary rates.
Minnesota's property tax (1.00% average) is just above national (0.99%), and sales tax is moderate (6.875% state; Minneapolis is 8.525% combined and rates vary by locality). At $100K income with a $330K Twin Cities home: $5,277 state income + $3,300 property (1.00%) + $4,263 sales (8.525% on $50K spending) = $12,840 total state/local tax (12.8% of income). Compare to Texas at $100K with a $330K home: $0 income + $4,620 property (1.40%) + $4,100 sales (8.2%) = $8,720 total (8.7%). TX saves $4,120/year in this example. Compare to California at $100K with a $330K home: $4,911 income + $2,310 property (0.70%) + $3,625 sales (7.25%) = $10,846 total (10.8%). MN pays $1,994 more than CA in this example, though California homes typically cost more. Bottom line: MN's total burden is high (about 12.8% in this example); whether the public services justify it is a personal judgement.
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How we calculate: Minnesota uses a 4-bracket progressive tax system. We calculate tax by applying rates to income in each bracket: 5.35% on first $33,310, 6.8% on $33,310-$109,430, 7.85% on $109,430-$203,150, 9.85% on income over $203,150. We subtract the Minnesota standard deduction ($15,300 for single filers in 2026, lower than federal) and apply federal tax using official 2026 IRS brackets. Effective rates are calculated by dividing total tax by gross income.
Data sources:
Verification: Minnesota's 4-bracket structure and 9.85% top rate verified against Minnesota Statutes Chapter 290 (Income Tax) and MN Department of Revenue's 2026 inflation-adjusted figures (published December 2025): brackets and the $15,300 single standard deduction. Figures were re-checked against our calculation engine in October 2026.
Limitations: Assumes single filer, standard deduction, W-2 income only, full-year MN residency. Does not include: itemized deductions, Minnesota-specific subtractions (K-12 education expenses, college savings contributions, Social Security over-taxation relief), federal credits, property tax (1.00% avg), sales tax (6.875% state plus local), part-year/nonresident calculations.
For complex situations: Consult a licensed Minnesota CPA, especially for: Social Security taxation (complex thresholds $86,410 single/$110,780 married), pension subtractions, part-year residency, Wisconsin border commuters (reciprocity rules), K-12 education expense deductions, 529 plan subtractions.
Last Updated: October 2026
Verified By: Daniel · CountryTaxCalc
Contact: For corrections or questions, visit our contact page.
Last Updated: October 2026