Bill > HF301

This bill reduces Minnesota's individual income tax rates across all income brackets by 3.25 percentage points, significantly lowering the tax liability for residents. Specifically, the bill modifies the tax rate schedules for different filing categories (married filing jointly, unmarried individuals, and heads of household) by decreasing rates and adjusting income bracket thresholds. For example, for married joint filers, the first tax bracket rate drops from 5.35% to 2.1%, and the income threshold increases from $38,770 to $47,620. Similar rate reductions and threshold increases are applied to other brackets, with top marginal rates reduced from 9.85% to 6.6%. The bill also updates the statutory year for inflation adjustments from 2019 to 2025, ensuring that tax brackets will continue to be indexed for inflation. These changes will be effective for taxable years beginning after December 31, 2024, meaning taxpayers will see these lower rates when filing their 2025 tax returns. The modifications aim to provide tax relief to Minnesota residents by reducing their overall income tax burden across all income levels.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0301&ssn=0&y=2025