Bill > SF3132

This bill modifies Minnesota's state income tax rates and brackets by increasing the income thresholds and adding a new top marginal tax rate of 12.45% for higher-income taxpayers. Specifically, the bill raises the income tax brackets for three filing categories: married couples filing jointly, unmarried individuals, and heads of household. For married joint filers, the first tax bracket is increased from $38,770 to $47,620, with subsequent brackets also raised proportionally. The bill introduces a new top tax rate of 12.45% for income over $500,000 for joint filers, over $250,000 for single filers, and over $400,000 for heads of household. Additionally, the bill updates the base year for inflation adjustments from 2019 to 2025, which means tax brackets will be automatically adjusted for inflation starting in the 2025 tax year. These changes are designed to adjust the state's income tax structure to account for inflation and potentially generate more revenue from higher-income taxpayers. The new tax rates and brackets will be effective for taxable years beginning after December 31, 2024.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3132&ssn=0&y=2025