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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Florida VS COUNTRY B Minnesota

Side-by-side analysis of income tax, effective rates, and take-home pay for Florida and Minnesota in 2026.

Daniel · CountryTaxCalc Updated May 2026 Tax Comparison 2026
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OVERVIEW
Minnesota has one of the highest state income tax burdens in the United States, and it is one of the rare states that taxes Social Security income — a fact that shocks many Minnesota retirees. Minnesota's progressive rates run from 5.35% to 9.85%, with the top rate kicking in above $220,650 for single filers. Florida has no state income tax whatsoever. At $100,000 in taxable income, a Minnesota resident pays approximately $6,900 in state income tax; a Florida resident pays zero. At $200,000, Minnesota's tax approaches $17,000–$19,000/year. The Social Security issue: Minnesota taxes Social Security benefits for taxpayers with provisional income above $105,380 (married filing jointly) or $82,190 (single) in 2024. Up to 85% of Social Security benefits can become taxable in Minnesota at the marginal rate. For a married couple with $130,000 total income including Social Security, this means hundreds to thousands of dollars of additional state tax that Florida retirees never pay. Minnesota does offer a Social Security subtraction that phases out at higher income levels — but above approximately $110,000 in adjusted gross income for married filers, little to no subtraction is available. Minnesota's property taxes are moderate (~1.0%), lower than Florida's average but with higher homeowners insurance in Florida offsetting this. For high earners and retirees with Social Security income above the thresholds, the Minnesota-to-Florida move is one of the highest-impact state tax changes available.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🌴
COUNTRY A
Florida
TAX RATE
0%
No State Income Tax

Zero state income tax; no tax on wages, retirement income, Social Security, or investment income

🌲
COUNTRY B
Minnesota
TAX RATE
5.35–9.85%
Taxes Social Security for Higher Earners

Progressive 5.35–9.85%; one of only ~9 states that taxes Social Security above income thresholds; no general pension exclusion

TYPICAL ANNUAL DIFFERENCE
Moving from Minnesota → Florida at $100,000
$6,900

Florida saves approximately $6,900/year vs Minnesota at $100K income. Minnesota's top rate is 9.85%. Minnesota also taxes Social Security for earners above ~$105,380 (married) or ~$82,190 (single). For high-income retirees drawing Social Security plus pension or IRA income, Florida's combined saving can exceed $10,000–$15,000/year.

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🌴 FL TAX
🌲 MN TAX
SAVINGS
10-YEAR
$50,000
$0
~$2,323
FL saves ~$2,323/yr
$23,230
$75,000
$0
~$4,073
FL saves ~$4,073/yr
$40,730
$100,000
$0
~$6,473
FL saves ~$6,473/yr
$64,730
$150,000
$0
~$11,248
FL saves ~$11,248/yr
$112,480
$250,000
$0
~$21,623
FL saves ~$21,623/yr
$216,230
💡

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🌴

Florida Pros & Cons

+ PROS
  • Zero state income tax — no tax on wages, Social Security, pensions, IRA withdrawals, or investment income
  • No estate or inheritance tax
  • Homestead Exemption up to $50,000 on primary residence
  • Year-round warm climate — eliminates Minnesota's brutal winters
  • Large established Minnesota snowbird communities in Southwest Florida, Naples, and Sarasota
− CONS
  • Property insurance crisis: $4,000–$8,000+/year in many Florida counties
  • Hurricane and flooding risk
  • Extreme summer heat and humidity
  • Distance from Minnesota family and community
🌲

Minnesota Pros & Cons

+ PROS
  • Property taxes ~1.0% — moderate and below Florida's average
  • Strong state economy with major corporate headquarters (Target, UnitedHealth, 3M)
  • No Minnesota inheritance tax — beneficiaries owe no state tax when receiving inherited assets
  • World-class healthcare (Mayo Clinic, University of Minnesota Medical Center)
  • Four seasons with strong outdoor recreation culture
− CONS
  • One of the highest state income tax burdens in the US — top rate 9.85%
  • One of only ~9 states that taxes Social Security income above income thresholds
  • No general pension exclusion — pensions and IRA income taxed at full progressive rates
  • Extremely cold winters with very high heating, vehicle maintenance, and utility costs
  • High state income tax on investment and capital gains income
FAQ

Frequently Asked Questions

Does Minnesota tax Social Security benefits?

Yes, Minnesota is one of approximately 9 states that tax Social Security income. Minnesota taxes Social Security benefits for taxpayers with provisional income above $105,380 (married filing jointly) or $82,190 (single filers) in 2024. Above these thresholds, up to 85% of Social Security benefits are included in Minnesota taxable income. Minnesota does offer a Social Security benefit subtraction that allows some lower-income retirees to exclude their benefits — but the subtraction phases out completely at roughly $108,710 (married) or $88,060 (single). High-income Minnesota retirees pay state income tax on a large portion of their Social Security. Florida taxes no Social Security income at any income level.

What are Minnesota's income tax rates in 2026?

Minnesota has four progressive brackets: 5.35% on income up to $30,070 (single) or $44,090 (married); 6.80% from $30,070 to $98,760 (single) or $44,090 to $174,610 (married); 7.85% from $98,760 to $183,340 (single) or $174,610 to $304,970 (married); 9.85% above $183,340 (single) or $304,970 (married). At $100,000 in taxable income (single), the effective rate is approximately 6.5–7%. At $200,000, the effective rate exceeds 8%. Minnesota's top rate of 9.85% is the fourth-highest in the country after California, Hawaii, and New Jersey.

Is the Minnesota-to-Florida retirement move financially compelling?

For most Minnesota retirees with moderate-to-high income, yes. At $100,000 in retirement income: Minnesota income tax ~$6,500/year; Florida $0. Florida property insurance adds $3,000–$5,000/year over Minnesota. Net Florida advantage on income: ~$1,500–$3,500/year at $100K. At $150,000 in income, the picture improves significantly: MN tax ~$11,000 minus insurance increase ~$4,000 = net Florida advantage ~$7,000/year. For Social Security recipients above the MN threshold, Florida's advantage is even larger because MN taxes SS income. The break-even income level for homeowners is approximately $85,000–$100,000 — below that, the insurance difference may offset the income tax saving.

Does Minnesota have an estate tax?

Yes. Minnesota still has one of the most aggressive state estate taxes in the country — a $3 million exemption per individual, far below the federal threshold of $15 million (2026, OBBBA). Minnesota's estate tax rates run from 13% to 16% on the amount above the $3M exemption. A $5M estate pays approximately $196,000 in Minnesota estate tax. A $10M estate faces approximately $1.1M in state estate tax before federal tax applies. Florida has no estate tax at any level. For high-net-worth Minnesotans with estates above $3M, establishing Florida domicile before death eliminates Minnesota estate tax entirely — this remains one of the primary financial drivers of the MN-to-FL move for wealthy retirees. Note: Minnesota has no inheritance tax on beneficiaries — the estate pays the tax, not the heirs.

How do Minnesota and Florida compare for remote workers?

For remote workers, Florida is substantially better. At $120,000 in remote income: Minnesota state tax ~$9,500/year; Florida $0. The annual saving is $9,500. Florida's higher property insurance (~$3,000–$5,000 more/year for homeowners) reduces but doesn't eliminate this advantage. For renters working remotely, the Florida advantage is clear at almost any income level. Minnesota's 9.85% top rate particularly affects high-earning remote workers — an engineer or tech employee at $200,000 saves approximately $15,000–$17,000/year by moving to Florida.

What Minnesota destinations have the most established Florida connections?

The Twin Cities metro area (Minneapolis-Saint Paul) feeds heavily into Southwest Florida — Naples, Marco Island, Fort Myers, and Cape Coral. Sarasota and Bradenton have large Minnesota retiree communities. The migration pattern typically follows the snowbird route: winter in Florida, summer in Minnesota, then permanent Florida move. Rochester, Minnesota (Mayo Clinic) has a strong connection to Southwest Florida. Grand Rapids, Duluth, and Brainerd area retirees frequently choose Gulf Coast communities within driving distance of Tampa International Airport (for return trips).
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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