Minnesota individual income tax
Minnesota's individual income tax applies to both residents and nonresidents of the state. The tax is calculated based on an individual's federal-adjusted gross income and has varying rates, from 5.35% to 9.85%.
April 18
Return due in 2023
9.85%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit MNDOR
What is Minnesota income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Minnesota on individuals that meet the taxable criteria.
Taxable incomes
Minnesota taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Minnesota has 4 individual income tax brackets from 5.35% to 9.85%.
Standard deduction
Standard deduction is $12,900 for singles, $25,800 for joint filers and $19,400 for head of household for the tax year 2022.
Estimated tax
Minnesota gives taxpayers the option of paying estimated taxes for the upcoming year by April 15, in addition to paying it quarterly.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Minnesota taxable income | Tax rate |
|---|---|
| $0 - $28,080 | 5.35% |
| $28,081 - $92,230 | 6.8% |
| $92,231 - $171,220 | 7.85% |
| $171,220+ | 9.85% |
Individual income tax
The State of Minnesota requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Minnesota
Types of taxable incomes
The income types on which tax is levied are:
In Minnesota, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Minnesota, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
If taxes are paid on time, you can have a 6-months automatic extension to filing.
Due
annually
Pay taxes
Taxes in Minnesota are due by 18 April, 2023. Go to the official Minnesota Department of Revenue website.
If your income is not withheld, or if your tax liability after witholding and credits is more than $500, you are required to pay estimated taxes.
Estimated taxes are to be made quarterly in instalments by the 15th of April, June, September, and January.
In Minnesota, estimated taxes can also be paid at one short for the entire year on April 15 as well.
To avoid penalities, atleast 90% of current year's tax liability or 100% of prior year's tax should be paid.
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Minnesota has standard deductions of $12,900 for single filers, $25,800 for joint filers and $19,400 for head of household for the tax year 2022.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Minnesota refers to an individual's permanent home or place of residence in the state.
Minnesota resident
A Minnesota resident is someone who is domiciled in Minnesota, or who maintains a permanent place of residence in the state. This means that you are considered a Minnesota resident if you live in the state for more than 6 months in a year.
If you have a home in Minnesota, yet claim residency in another state, records should be furnished to prove that you were out of state for more than half the year.
Minnesota part-year resident
A Minnesota Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Minnesota is subject to state taxes.
Minnesota non-resident
A Minnesota Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Minnesota sources are required to pay Minnesota taxes.
Frequently asked questions
Business entities in Minnesota
There are several business entities in Minnesota
Minnesota LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time