Minnesota Income Tax
Minnesota has a progressive income tax with rates ranging from 5.35-9.85%. Lower income earners pay the lower rate, with the top rate applying to the highest bracket.
Minnesota Sales Tax
The state sales tax rate in Minnesota is 6.875%. With an average local sales tax of 0.6%, the combined average sales tax rate is 7.475%.
Minnesota Property Tax
The effective property tax rate in Minnesota is 1.08%. With a median home value of $299,600, the median annual property tax bill is $3,336 ($278/month).
Corporate & Business Taxes
The corporate tax rate in Minnesota is 9.8%.
Other Taxes in Minnesota
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.28/gallon |
| Cigarette Tax | $3.04/pack |
| Estate Tax | Yes |
| Inheritance Tax | No |
Key Facts
High income tax and corporate tax. No sales tax on clothing. Estate tax on estates above $3M.
Compare to Other States
See how salaries compare on our average salary in Minnesota page. Thinking about starting a business? Check our LLC guide for Minnesota. See the current minimum wage in Minnesota.
Financial Calculators
Plan your finances in Minnesota with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford