Bill > SF421

This bill reduces all Minnesota income tax rates by 3.25 percentage points for all individual income tax brackets, while also adjusting the income bracket thresholds. Specifically, the bill modifies the tax rates for married individuals filing jointly, unmarried individuals, and heads of household. For example, the first income tax bracket for all filing statuses would change from 5.35% to 2.1%, and the highest income tax bracket would change from 9.85% to 6.6%. The bill also updates the income bracket thresholds, raising the dollar amounts at which different tax rates apply. The statutory year for inflation adjustments is changed from 2019 to 2025, which means the income tax brackets will be adjusted accordingly. These changes would be effective for taxable years beginning after December 31, 2024, meaning taxpayers would see these lower tax rates when filing their 2025 tax returns in early 2026. The primary goal of the bill appears to be providing tax relief by reducing the overall tax burden for Minnesota residents across all income levels.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0421&ssn=0&y=2025