The Tax Brief real effective rates for 111+ countries — bi-weekly, free.
HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A New York VS COUNTRY B Minnesota

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

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
New York and Minnesota are two of the highest-income-tax states in the US. New York's 9-bracket system tops at 10.9%, while Minnesota's 4-bracket system peaks at 9.85% — the 3rd-highest top rate nationally. At $100,000 income, New York collects $6,860 vs Minnesota's $5,692 — a $1,168 annual difference in New York's favour. At higher incomes the gap widens: at $200,000, NY costs $4,714 more. NYC residents face an additional 3.078–3.876% local tax, making the Minnesota advantage even more pronounced for city dwellers. This comparison is particularly relevant for high-earning professionals considering Minneapolis vs NYC.
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
New York
TAX RATE
4-10.9%
Progressive
9 tax brackets from 4% to 10.9%, plus NYC local tax
🌲
COUNTRY B
Minnesota
TAX RATE
5.35-9.85%
Progressive
4 brackets, 9.85% top rate — 3rd-highest in the US
TYPICAL ANNUAL DIFFERENCE
Moving from Minnesota → New York at $100,000
$1,168
That's $97/month back in your pocket
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
🗽 NY TAX
🌲 MN TAX
SAVINGS
10-YEAR
$50,000
$2,718
$2,392
$326
$3,260
$100,000
$6,860
$5,692
$1,168
$11,680
$150,000
$12,014
$9,350
$2,664
$26,640
$200,000
$17,614
$12,900
$4,714
$47,140
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships

Talk to a Real CPA

Taxhub

★ 4.8 verified reviews  ·  3,758 reviews

Moving between states means a complex multi-state tax return. Taxhub matches you with a real CPA via video call — average cost $325. Rated 4.8★ by 3,700+ clients.

⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.

Get Matched With a CPA →

Interested in reaching this audience? Advertise on CountryTaxCalc →

🗽

New York Pros & Cons

+ PROS
  • Global financial hub: Wall Street salaries dwarf Minneapolis for finance/banking roles
  • Broader income tax exemptions: NY exempts more pension and retirement income categories
  • Top-tier universities: Columbia, NYU, Cornell — recruiting pipelines unmatched
  • Global city premium: Media, fashion, tech roles pay 30-50% more than Minneapolis equivalents
  • No sales tax on groceries or clothing under $110
− CONS
  • Top rate 10.9%: Higher than Minnesota's 9.85% at the top bracket
  • NYC local tax: An additional 3.078–3.876% city tax for NYC residents
  • Extremely high cost of living: NYC housing costs 3–4× Minneapolis
  • Estate tax: New York imposes estate tax from 3.06–16% on estates over $7.16M
  • Combined NY+NYC burden at $200k: ~$22,300+ — among the highest in the US
🌲

Minnesota Pros & Cons

+ PROS
  • Lower tax at most income levels: MN saves $1,168 on $100k vs NY state alone
  • No city income tax in Minneapolis or St. Paul (unlike NYC's 3.876%)
  • Affordable housing: Minneapolis median ~$330k vs NYC $800k+ (59% cheaper)
  • Strong job market: Target, Best Buy, UnitedHealth, 3M all headquartered in MN
  • High quality of life: Minneapolis ranked top 10 for livability, walkability, arts
− CONS
  • 9.85% top rate: 3rd-highest state income tax rate nationally — still very high
  • High corporate taxes: MN taxes businesses heavily, suppressing some job creation
  • Winter climate: Minneapolis averages -10°F windchills, 54 inches of snow annually
  • Limited transit: Light rail exists but car dependency high vs NYC's MTA
  • Social safety net costs: MN's generous public programs funded by high income taxes
FAQ

Frequently Asked Questions

Who pays less in income tax — New York residents or Minnesota residents?

For most income levels, Minnesota residents pay less state income tax than New York residents. At $100,000: NY costs $6,860 vs MN $5,692 — New York is $1,168 more expensive. At $50,000, the gap narrows to $326. However, if you live in NYC, add 3.078–3.876% city tax, making the NYC total ~$9,900–$10,260 vs Minnesota's $5,692. Minneapolis residents have no city income tax, making Minnesota dramatically cheaper than New York City for residents specifically.

What are Minnesota's 4 income tax brackets for 2026?

Minnesota's 2026 income tax brackets for single filers are: 5.35% on the first $30,070; 6.80% on $30,070–$98,760; 7.85% on $98,760–$183,340; and 9.85% on income over $183,340. For married filing jointly, the thresholds are roughly doubled. The 9.85% top rate is the 3rd-highest state income tax rate in the country, behind only California (13.3%) and Hawaii (11%), and approximately equal to New Jersey (10.75%) though New York reaches 10.9% at the very top.

Does Minneapolis have a city income tax like New York City does?

No. Minneapolis and St. Paul do not levy a local city income tax. This is a major advantage over New York City, where residents pay an additional 3.078–3.876% on top of state tax. A Minneapolis resident earning $100,000 pays $5,692 total in state income tax. A NYC resident earning $100,000 pays $6,860 state + $3,078–$3,400 city = roughly $9,938–$10,260 combined. The absence of a Minneapolis city income tax is the largest practical difference between the two states for urban residents.

Is New York or Minnesota better for high-income earners above $500k?

For very high incomes, both states are expensive but New York is slightly worse. New York's top marginal rate of 10.9% kicks in at $25M+ (single), while Minnesota's 9.85% top rate starts at $183,340 (single) — meaning Minnesota hits its top rate much earlier. However, NYC residents also pay 3.876% city tax at the top, making the combined NY+NYC marginal rate 14.776% — significantly above Minnesota's 9.85%. High earners comparing only state-level taxes see a more modest difference; NYC residents see a dramatic one.

How do Minnesota and New York compare for retirees?

Minnesota is less retiree-friendly than New York. Minnesota taxes Social Security benefits for higher-income retirees (though provides a subtraction for lower incomes). New York fully exempts Social Security and exempts up to $20,000 of pension/retirement income for those 59½+. Minnesota exempts some pension income but less generously. For retirees on fixed income, New York's retirement income exemptions often make it more attractive despite higher marginal rates on earned income.
From the brief
CY0%dividends, 60-day rule
PT20%flat rate, tech workers
GB39%non-dom regime gone
The Tax Brief · Subscribe free

More like this, every two weeks.

Verified rates, real after-tax figures, plain English. Free.

Bi-weekly. No spam. Unsubscribe in one click.