Bill > SF1968

This bill modifies Minnesota's individual income tax rates by reducing the first-tier tax rate and adjusting income tax brackets for different filing statuses (married filing jointly, unmarried individuals, and heads of household). Specifically, the bill lowers the first-tier tax rate from 5.35% to 2.8% and increases the income thresholds for each tax bracket. For example, for married couples filing jointly, the first tax bracket now covers income up to $47,620 (up from $38,770) at the 2.8% rate, with subsequent brackets also being expanded. Similar proportional increases are made for unmarried individuals and heads of household. The bill also updates the statutory year for inflation adjustments from 2019 to 2025, which allows the tax brackets to be automatically adjusted for inflation. These changes are designed to provide tax relief by reducing the tax burden for lower and middle-income taxpayers and accounting for inflation. The new tax rates and brackets will be effective for taxable years beginning after December 31, 2024 (for the rate changes) and after December 31, 2025 (for the inflation adjustment provisions).

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1968&ssn=0&y=2025