Bill > HF756

This bill proposes to double the dependent exemption amount for Minnesota state income tax purposes, increasing the exemption from $4,250 to $10,400. The bill amends the existing tax law to modify how dependent exemptions are calculated for taxpayers. Specifically, taxpayers can claim an exemption for each dependent as defined by the Internal Revenue Code, and this exemption will now be significantly larger. The bill also updates the statutory year for inflation adjustments from 2019 to 2025, which means the Minnesota Department of Revenue will use 2025 as the base year for future inflation-related adjustments to the exemption amount. The changes will take effect for taxable years beginning after December 31, 2024, meaning taxpayers will first see this increased dependent exemption when filing their 2025 tax returns. This change could provide meaningful tax relief for families with dependents by allowing them to reduce their taxable income by a larger amount for each qualifying dependent.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0756&ssn=0&y=2025