Bill > HF170

This bill proposes a gradual phaseout of Minnesota's estate tax over a ten-year period, starting July 1, 2025. Currently, Minnesota imposes a graduated tax rate on estates, with rates ranging from 13% to 16% for estates over $7,100,000. The bill mandates that the Minnesota Department of Revenue (the commissioner) will reduce each tax rate by 1.6 percentage points every July 1st from 2025 to 2034, effectively bringing the estate tax rates down to zero by June 30, 2034. If a rate reduction would result in a negative percentage, it will be set to zero. Similarly, the additional amounts added to each tax bracket will also be progressively reduced until they reach zero. This means that by 2034, Minnesota will effectively eliminate its estate tax for decedents dying after June 30, 2025. The phased approach allows for a gradual transition and provides predictability for taxpayers and estate planners.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0170&ssn=0&y=2025