Bill > HF1958

This bill modifies Minnesota's individual income tax rates and brackets, increasing the income ranges for each tax rate tier and adding two new top tax brackets for high-income earners. Specifically, the bill adjusts tax rates for three filing categories (married filing jointly, single, and head of household) by expanding the income ranges for existing tax rates and introducing a new 12.45% tax rate for higher income levels. For married couples filing jointly, the first tax bracket is raised from $38,770 to $47,620, with subsequent brackets similarly increased. The bill also changes the baseline year for annual inflation adjustments from 2019 to 2025, which will help ensure tax brackets keep pace with 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 mechanism). These modifications are intended to update the state's income tax structure, potentially providing some tax relief for lower and middle-income taxpayers while also increasing tax rates for high-income earners.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1958&ssn=0&y=2025