Question 1

What is Minnesota's state income tax rate for 2025?

Accepted Answer

Minnesota imposes a 4-bracket progressive income tax under Minn. Stat. §290.06 subd 2c ranging from 5.35% to 9.85%. TY2025 single-filer thresholds are $32,570 (5.35% below), $106,990 (6.80%), $198,630 (7.85%), and 9.85% above. Married-filing-jointly thresholds are approximately double at $47,620 / $189,180 / $330,410. Bracket amounts are inflation-indexed 2.886% off TY2024 per Minn. Stat. §290.06 subd 2d.

Question 2

What is Minnesota's standard deduction for 2025?

Accepted Answer

Minnesota's TY2025 standard deduction is $14,575 for single and MFS filers and $29,150 for married-filing-jointly filers under Minn. Stat. §290.0123, cost-of-living indexed annually per subd 4. The standard deduction phases out for AGI above $232,900 (single) / $349,350 (MFJ) at a rate of 3% per $2,500 of excess, one of a small number of states to impose an SD phase-out.

Question 3

Does Minnesota tax Social Security benefits?

Accepted Answer

Minnesota partially exempts Social Security under Minn. Stat. §290.0132 subd 26, as expanded by HF 1938 (2023). For TY2025 the full Social Security subtraction applies to AGI below $105,380 for MFJ filers and $82,190 for single or HOH filers, phasing out entirely at $145,380 MFJ / $122,190 single/HOH. This eliminated state tax on Social Security for roughly 76% of Minnesota Social Security recipients.

Question 4

Do Minneapolis, St. Paul, or other Minnesota cities levy a local income tax?

Accepted Answer

No. Minnesota does not authorize its municipalities to levy a local income tax. Neither Minneapolis nor St. Paul (nor any other Minnesota city or county) imposes a separate local income tax; municipal revenue is derived primarily from local property tax, sales tax add-ons (where authorized under Minn. Stat. §297A.99), and state aids.

Question 5

What Minnesota-specific credits should filers know about for 2025?

Accepted Answer

Minnesota offers the Working Family Credit under Minn. Stat. §290.0671 (up to 45% of the federal EITC), the K-12 Education Credit under Minn. Stat. §290.0674 (up to $1,000 per child for qualifying tuition and non-computer educational expenses), and a Child Tax Credit under Minn. Stat. §290.0661 (up to $1,750 per qualifying child, refundable, enacted by HF 1938 in 2023) — one of the most generous state CTCs in the country.

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