🌴 COUNTRY A Florida VS 🌲 COUNTRY B Minnesota

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.

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.

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.

Minnesota abolished its estate tax in 2023. Before 2023, Minnesota had an estate tax with a $3 million exemption — far below the federal threshold — that applied to estates between $3M and $13.61M. This made Minnesota one of the most aggressive estate tax states in the country. The abolition removes a major financial reason high-net-worth Minnesotans were establishing Florida domicile for estate planning. For most current retirees, the estate tax comparison between Florida and Minnesota is now equal at the state level.

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.