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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 $50,000 income, Minnesota is cheaper by $226, but the comparison flips at higher incomes: at $100,000, New York actually collects $4,860 vs Minnesota's $5,277 — New York is $417/year cheaper. At $200,000, New York's advantage grows to $2,107/year. NYC residents, however, face an additional 3.078–3.876% local tax on top of the state rate, which pushes NYC's combined burden back above Minnesota's at every income level shown. 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
3.9-10.9%
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
$417 (NY cheaper)

That's $35/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
$2,103
$1,877
MN saves $226
$2,260
$100,000
$4,860
$5,277
NY saves $417
$4,170
$150,000
$7,810
$8,942
NY saves $1,132
$11,320
$200,000
$10,760
$12,867
NY saves $2,107
$21,070
💡

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🗽

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 $7.35M
  • Combined NY+NYC burden at $200k: ~$18,077 — among the highest in the US
🌲

Minnesota Pros & Cons

+ PROS
  • Lower tax than New York only below about $66,000 income: MN saves $226 at $50K, but New York's state-only tax becomes cheaper at $100K and above (unless comparing to NYC specifically, where Minnesota stays dramatically cheaper due to NYC's added city tax)
  • 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?

It depends on income. At $50,000, Minnesota is cheaper by $226. But above about $66,000, New York's state-only tax actually becomes cheaper than Minnesota's — at $100,000: NY costs $4,860 vs MN $5,277, making New York $417 less expensive; at $200,000, New York's advantage grows to $2,107. However, if you live in NYC, add 3.078–3.876% city tax, making the NYC total ~$8,301 at $100,000 — still well above Minnesota's $5,277. Minneapolis residents have no city income tax, making Minnesota dramatically cheaper than New York City specifically, even though non-NYC New York is now cheaper than Minnesota at most income levels shown.

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 $5,277 total in state income tax. A NYC resident earning $100,000 pays $4,860 state + $3,441 city = $8,301 combined. The absence of a Minneapolis city income tax is the largest practical difference between the two states for urban residents — even though non-NYC New York's state-only tax is actually lower than Minnesota's at this income level.

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

For very high incomes, it depends heavily on whether you're in NYC. Outside NYC, New York's state-only tax is now dramatically cheaper than Minnesota's — at $500,000: NY $31,087 vs MN $42,048 (NY saves $10,961); at $1,000,000: NY $65,337 vs MN $91,298 (NY saves $25,961), because Minnesota's 9.85% top rate applies broadly while New York's 10.9% top rate only kicks in above $25 million. NYC residents are a different story: adding the city's 3.876% tax brings NYC's combined total to $50,033 at $500,000 and $103,663 at $1,000,000 — still above Minnesota in both cases. So non-NYC New York is now cheaper than Minnesota at every income level above about $66,000, while NYC remains the most expensive of the three scenarios.

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
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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