Bill > HF154

This bill modifies Minnesota's individual income tax rates and tax brackets for different filing statuses (married filing jointly, unmarried individuals, and heads of household). The changes include lowering the first-tier tax rate from 5.35% to 2.8% and increasing the income thresholds for each tax bracket. Specifically, for married couples filing jointly, the first tax bracket now covers income up to $47,620 (previously $38,770), with subsequent brackets adjusted proportionally. Similar changes are made for unmarried individuals and heads of household, with corresponding increases in income thresholds. The bill also updates the base year for inflation adjustments from 2019 to 2025, which means tax brackets will be annually adjusted based on the 2025 baseline. These changes will be effective for taxable years beginning after December 31, 2024 (for the tax rate changes) and after December 31, 2025 (for the inflation adjustment provisions). The modifications are intended to provide tax relief by lowering rates and adjusting brackets to account for inflation, potentially reducing the tax burden for many Minnesota taxpayers.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0154&ssn=0&y=2025