Bill > HF153

This bill modifies Minnesota's individual income tax rates by reducing them across all tax brackets for different filing statuses (married filing jointly, unmarried individuals, and heads of household). Specifically, the bill reduces income tax rates by one percentage point for each existing tax bracket. For example, the lowest tax rate for married joint filers drops from 5.35% to 4.35% for income up to $47,620, and subsequent brackets are similarly reduced. The bill also introduces a phased approach to tax rate adjustments, with slight increases in rates for tax years 2025 and 2026. In 2025, rates will increase slightly from the initial reductions, and in 2026, rates will increase further but still remain lower than the original pre-bill rates. The tax bracket dollar amounts are also adjusted annually for inflation, with 2025 set as the base year for these calculations. The changes are designed to provide some tax relief while maintaining a gradual approach to rate modifications, affecting all individual income tax filers in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0153&ssn=0&y=2025