Compare taxes and see how much you save moving from Minnesota to Texas
Minnesota has the highest state income tax in the Midwest (up to 9.85%), while Texas has zero state income tax. A $100,000 earner saves $7,013 per year moving from Minnesota to Texas. However, Texas property tax (1.6-2.2%) is significantly higher than Minnesota's (1.12%), which can offset savings for expensive homes. Minnesota taxes Social Security and all retirement income for high earners, while Texas taxes no retirement income. Major corporations (Target, 3M) are considering relocating from Minnesota to Texas for the tax advantage.
Highest in Midwest
4 progressive brackets from 5.35% - 9.85%
No Income Tax
Constitutional prohibition on income tax
At $100,000 income:
That is $584/month back in your pocket!
| Income | MN Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,412 | $0 | $2,412 | $24,120 |
| $75,000 | $4,619 | $0 | $4,619 | $46,190 |
| $100,000 | $7,013 | $0 | $7,013 | $70,130 |
| $150,000 | $12,205 | $0 | $12,205 | $122,050 |
| $250,000 | $22,055 | $0 | $22,055 | $220,550 |
| $500,000 | $46,680 | $0 | $46,680 | $466,800 |
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Get Matched With a CPA →At $75,000 income, you save $4,619 per year. At $100,000, you save $7,013 per year. At $150,000, you save $12,205 per year. Minnesota has rates up to 9.85% (highest in Midwest), while Texas has 0% state income tax. Over 10 years at $100K income, that's $70,130 in savings.
Minnesota has 4 progressive brackets: 5.35%, 6.80%, 7.85%, and 9.85% (top rate starts at $183,340 for singles, $273,470 for married couples). Texas has no state income tax - it is constitutionally prohibited. Minnesota's 9.85% top rate is the highest in the Midwest region.
For most earners, no. Texas property tax is 1.6-2.2% vs Minnesota's 1.12%. On a $300,000 home: MN = $3,360/year, TX = $4,800-$6,600/year. Extra TX property tax = $1,440-$3,240. But income tax savings at $100K = $7,013. Texas still saves $3,773-$5,573/year. For very expensive homes ($750K+), the gap narrows.
Texas does not tax retirement income at all (0% on Social Security, pensions, 401(k), IRA distributions). Minnesota taxes Social Security if income exceeds $82,190 (married) or $65,080 (single), and taxes all pension/IRA income at full state rates (5.35%-9.85%). Retirees can save $5,000-$15,000 per year in Texas.
Yes. Major Minnesota corporations are relocating or considering Texas: Target is exploring headquarters options, 3M announced plans to move operations, and numerous smaller businesses have relocated. The 9.85% income tax differential and 0% corporate franchise tax in Texas (vs Minnesota's corporate tax) drive these decisions. This corporate exodus trend accelerated in 2024-2026.
For income alone, Texas wins at every level. Even at $50K income, you save $2,412/year, covering the property tax difference on a modest home. At $100K+, savings ($7,000-$46,000/year) overwhelm any property tax offset. For retirees with $80K+ income, Texas saves $5,000-$15,000 annually. Renters benefit immediately at any income.
Minnesota ranks significantly higher (#6 nationally) vs Texas (#32-38 depending on ranking system). Minnesota has better teacher pay, smaller class sizes, and stronger test scores. However, specific Texas districts (Austin, Plano, The Woodlands) rival Minnesota quality. Families prioritizing education often stay in Minnesota despite tax costs, or target elite Texas districts.
Minnesota: 9.85% income tax, 1.12% property tax, 6.875% sales tax (state + local avg). Texas: 0% income tax, 1.6-2.2% property tax, 6.25-8.25% sales tax. For W-2 earners, Texas wins decisively. For homeowners with expensive properties, calculate both (income tax savings usually still exceed property tax increase). Texas ranks #32 nationally in total tax burden, Minnesota ranks #7.
Minnesota has significantly stronger healthcare: Mayo Clinic (Rochester), top-ranked hospitals, comprehensive coverage options. Texas has good healthcare in major cities (MD Anderson in Houston, UT Southwestern in Dallas) but uneven access outside metros. Minnesota ranks #3-5 nationally for healthcare, Texas ranks #30-35. This quality gap matters for families and retirees.