What is Minnesota Income Tax? Rates & Tax Brackets

Updated for tax year 2025.

If you live or work in Minnesota, you’ll likely need to file a Minnesota state income tax return along with your federal return. Minnesota has a progressive income tax system with four tax rates, so the amount you owe depends on your filing status and taxable income.

This guide explains Minnesota’s 2025 income tax rates and brackets, standard deduction, available exemptions and credits, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Minnesota’s tax rules to help you accurately prepare your Minnesota return alongside your federal return.

What is the Minnesota state income tax?

Minnesota state income tax is a tax on income earned by individuals and certain businesses. It is collected by the Minnesota Department of Revenue and helps fund state services, including education, transportation, and public safety.

Unlike states with a flat income tax, Minnesota uses a progressive tax system, meaning different portions of your taxable income are taxed at different rates. For tax year 2025, Minnesota continues to use four income tax brackets while adjusting the bracket thresholds, standard deduction, and dependent exemption for inflation.

Minnesota income tax rates and tax brackets

Minnesota’s state income taxes are based on four tax brackets. Here is a look at the 2025 Minnesota tax brackets based on filing status:

Tax Rate	Single Filers	Married Filing Separately	Married Filing Jointly and Qualified Surviving Spouse	Head of Household
5.35%	Up to $32,570	Up to $23,810	Up to $47,620	Up to $40,100
6.8%	$32,571 — $106,990	$23,811 — $94,590	$47,621 — $189,180	$40,101 — $161,130
7.85%	$106,991 — $198,630	$94,591 — $165,205	$189,181 — $330,410	$161,131 — $264,050
9.85%	$198,631 and up	$165,206 and up	$330,411 and up	$264,051 and up

If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes.

Minnesota standard deduction

The Minnesota standard deduction amount depends on your filing status. The amounts for 2025 are:

Single filers and married filing separately: $14,950
Head of household: $22,500
Married filing jointly or qualifying surviving spouse: $29,900 (phased out by higher income levels)

Those who are blind or over age 65 can claim an increased standard deduction.

If you file as married filing separately, you cannot claim the standard deduction if your spouse chose to itemize. You may itemize your deductions on your Minnesota return even if you claimed the standard deduction on your federal income tax return.

Minnesota exemptions

Minnesota offers deductions, exemptions, and tax credits that may reduce the amount of tax you owe. Some common Minnesota tax breaks are:

Dependent exemption of up to $5,200 per dependent (phased out for higher-income filers)
Child and Dependent Care Credit
Child Tax Credit
Working Family Credit

You may claim the Minnesota standard deduction or itemize on your Minnesota return.

Minnesota tax changes for 2025

Income tax brackets were adjusted by 2.886% from 2024 for inflation.
Standard deduction and dependent exemption amounts increased for 2025.

Outside of those inflation adjustments, there were no changes to Minnesota’s basic four-bracket income tax rate structure for 2025.

FAQs

Does Minnesota have a state income tax?

Yes, Minnesota has a state income tax. Minnesota uses a progressive tax system with four income tax brackets for tax year 2025, rather than a single flat rate.

What is the Minnesota income tax rate?

Minnesota’s 2025 income tax rates are 5.35%, 6.8%, 7.85%, and 9.85%. The Minnesota income tax rate that applies to you depends on your taxable income and filing status.

What are the Minnesota income tax brackets for 2025?

Minnesota has four 2025 income tax brackets: 5.35%, 6.8%, 7.85%, and 9.85%. See the Minnesota income tax brackets table above for all filing statuses.

How does Minnesota state income tax work?

Minnesota state income tax works by taxing portions of your Minnesota taxable income at graduated rates. After you determine your filing status and taxable income, Minnesota applies the matching tax brackets. You may also reduce your tax with the Minnesota standard deduction or itemized deductions, a dependent exemption (if eligible), and available Minnesota tax credits.

Do I have to file a Minnesota state tax return?

You may need to file a Minnesota state tax return if you are a Minnesota resident, part-year resident, or nonresident with Minnesota-source income and you meet Minnesota’s filing requirements. Filing rules can depend on your income, residency status, and other factors, so check the Minnesota Department of Revenue guidance for your situation.

What is the Minnesota standard deduction for 2025?

For 2025, the Minnesota standard deduction is $14,950 for single filers and married filing separately, $22,500 for head of household, and $29,900 for married filing jointly and qualifying surviving spouses (phased out at higher income levels).

How much is Minnesota state income tax?

There isn’t one Minnesota state income tax amount that applies to everyone. How much Minnesota state income tax you owe depends on your taxable income, filing status, deductions, exemptions, and credits. Use the 2025 Minnesota income tax brackets above as a starting point, then factor in deductions and credits that apply to you.

Why is my Minnesota tax return different from my federal return?

Minnesota generally follows federal tax law, but not every federal tax change automatically applies to your Minnesota return. For example, while many provisions of the One Big Beautiful Bill Act (OBBBA) now apply in Minnesota, the state continues to have different rules for certain items, such as bonus depreciation. As a result, your Minnesota taxable income or deductions may differ from your federal return.

The good news is that our tax software automatically applies Minnesota’s current tax rules when preparing your state return, so you don’t have to calculate these differences yourself.

For more information about Minnesota’s conformity updates, visit the Minnesota Department of Revenue’s Tax Law Changes page. If you’d like to learn more about the federal changes under the OBBBA, see our OBBBA tax changes guide.

The bottom line

Minnesota has a progressive state income tax with four 2025 tax rates ranging from 5.35% to 9.85%. Knowing the Minnesota income tax brackets, standard deduction, and available exemptions or credits can help you estimate what you may owe — and what you may get back.

When you’re ready to file, TaxAct can help you prepare your federal and Minnesota returns in one place so you can file with confidence. Already filed your taxes and waiting for your refund? Learn more about where your Minnesota state tax refund is.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.

Citations

Minnesota Department of Revenue. “Minnesota income tax brackets, standard deduction and dependent exemption amounts for 2025.” 16 Dec. 2024.
Minnesota Department of Revenue. “Minnesota Standard Deduction.” Accessed 17 July 2026.
Minnesota Department of Revenue. “Dependent Exemptions.” Accessed 17 July 2026.
Minnesota Department of Revenue. “Tax Law Changes.” Accessed 17 July 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where’s My Minnesota State Tax Refund?” TaxAct Blog, 16 Jan. 2026.