Bill > HF167

This bill makes several changes to Minnesota's tax code, primarily focusing on income tax rates, Social Security benefits subtraction, and property tax refunds. Specifically, the bill modifies income tax brackets by lowering rates for different income levels, allowing an unlimited subtraction for Social Security benefits, and adjusting the homestead credit refund program. For married joint filers and single taxpayers, the bill reduces tax rates on lower income brackets from 5.35% to 2.8% and increases the income thresholds for each tax bracket. It also simplifies the Social Security benefits subtraction by removing complex phaseout calculations and allowing a full subtraction of Social Security benefits. Additionally, the bill updates the homestead credit refund program by expanding income brackets, increasing the percentage of state refunds, and adjusting income thresholds to provide more financial relief to homeowners. These changes are set to take effect for tax years beginning after December 31, 2024, with some provisions applying to property taxes payable in 2026 and 2027.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0167&ssn=0&y=2025