Minnesota Tax Guide 2026

Minnesota Income Tax Overview

Minnesota has a Progressive up to 9.85% — one of highest in US. When combined with federal income tax and FICA taxes, Minnesota residents in the median income range of $80,441 typically face a combined effective tax rate of approximately 33% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Minnesota Sales Tax Rate 2026

Minnesota's combined sales tax rate is 7.41%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $7.41 in sales tax — and $37.05 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in Minnesota

Minnesota homeowners pay an effective property tax rate of 1.01% annually. On the Minnesota median home price of $330,000, that means approximately $3,333 per year — or $278 added to your monthly mortgage payment. Minnesota's property tax rate is near the national average of 1.07%.

Total Tax Burden for Minnesota Residents

When calculating the total tax burden for a Minnesota household earning $80,441 annually, you must add: federal income tax (approximately $9,653), FICA taxes (7.65% = $6,154), Minnesota state income tax (approximately $5,546), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Minnesota Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Minnesota state income tax
• HSA contributions are deductible from both federal and state income tax in Minnesota
• Check if Minnesota has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Minnesota conformity