Minnesota state income tax
Minnesota has a state income tax. It is graduated, with a top marginal rate of 9.85%. Four brackets for single filers (tax year 2026): 5.35% up to $33,310; 6.80% to $109,430; 7.85% to $203,150; 9.85% over $203,150. Married filing jointly: 5.35% up to $48,700; 6.80% to $193,480; 7.85% to $337,930; 9.85% over $337,930. Brackets are adjusted annually for inflation under M.S. 270C.22 (rounded to nearest $10); the dollar figures printed in the codified text of M.S. 290.06 subd. 2c reflect the 2019 base year, not the current year, the Department of Revenue republishes the inflation-adjusted thresholds each December. Capital gains are taxed as ordinary income (no special lower rate).
Does Minnesota have a state income tax?
Yes. Minnesota taxes individual income on a graduated schedule topping out at 9.85%. Four brackets for single filers (tax year 2026): 5.35% up to $33,310; 6.80% to $109,430; 7.85% to $203,150; 9.85% over $203,150. Married filing jointly: 5.35% up to $48,700; 6.80% to $193,480; 7.85% to $337,930; 9.85% over $337,930. Brackets are adjusted annually for inflation under M.S. 270C.22 (rounded to nearest $10); the dollar figures printed in the codified text of M.S. 290.06 subd. 2c reflect the 2019 base year, not the current year, the Department of Revenue republishes the inflation-adjusted thresholds each December.
| Item | Minnesota |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 9.85% |
| Capital gains | Taxed as ordinary income, up to 9.85% |
| State sales tax | 6.875% (plus local) |
| Avg. property tax rate | 1.04% of home value |
| Estate / inheritance tax | Estate tax (exemption $3,000,000) |
How does Minnesota tax capital gains?
Minnesota has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 9.85%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Minnesota?
Retirement income is taxed differently from wages in many states. For how Minnesota treats Social Security, pensions, and 401(k)/IRA withdrawals, see Minnesota retirement taxes.
Sources
- Minnesota income tax rates and brackets: Minnesota Department of Revenue / Taxation.
- Minnesota capital gains treatment: Minnesota tax authority.
- Minnesota sales tax: Minnesota Department of Revenue.