Bill > SF1195

This bill modifies Minnesota's individual income tax rates by adjusting the tax brackets and creating a zero bracket for different filing statuses. Specifically, the bill increases the income thresholds for each tax rate bracket for married joint filers, unmarried individuals, and heads of household, effectively providing tax relief by allowing more income to be taxed at lower rates. The bill removes the lowest tax rate (5.35%) for all filing statuses and adjusts the subsequent brackets, with new breakpoints for 6.8%, 7.85%, and 9.85% tax rates. For example, for married joint filers, the first tax bracket is eliminated, and the subsequent brackets start at higher income levels. The bill also updates the base year for inflation adjustments from 2019 to 2025, which means tax brackets will be annually adjusted for inflation starting in 2025. These changes will apply to taxable years beginning after December 31, 2024, and are designed to provide some tax relief by allowing more income to be taxed at lower rates and accounting for inflation in the tax brackets.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1195&ssn=0&y=2025