Bill > SF953

This bill proposes a gradual ten-year phaseout of Minnesota's estate tax, beginning on July 1, 2025, and continuing through June 30, 2034. Currently, Minnesota imposes an estate tax with graduated rates ranging from 13% to 16% for estates over $7,100,000, with higher tax percentages applying to larger estate values. Under the proposed legislation, the tax rates will be reduced by 1.6 percentage points each year until they reach zero. If a rate reduction would result in a negative percentage, that rate will be set to zero. The bill also stipulates that the additional amounts added to each tax rate bracket will be proportionally reduced alongside the rate reductions. The new tax structure will apply to estates of decedents dying after June 30, 2025. This gradual phaseout is designed to eventually eliminate the state's estate tax over a decade, potentially making Minnesota more attractive for wealthy individuals and families in terms of estate planning.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0953&ssn=0&y=2025