Minnesota Income Tax 2026: Brackets, Rates, and Free Calculator

October 25, 2026 · 6 min read · By the DollarWise team

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Minnesota has one of the most progressive income tax systems in the Midwest, with four brackets running from 5.35% to 9.85% — and the top rate is among the highest in the nation. For 2026, the rates themselves did not change, but the bracket thresholds moved upward with inflation, and the standard deduction rose too. That combination means a little more breathing room in your take-home pay, even if your salary did not change.

This guide walks you through the official 2026 brackets for every filing status, the standard deduction and dependent exemption, how the calculation works step by step, and how to get an exact estimate in seconds with our free calculator.

How Minnesota’s progressive income tax works

“Progressive” means your tax rate climbs as your income climbs — but only on the slice of income inside each bracket. This is the idea of marginal rates, and it is the single most misunderstood part of state taxes. If you are a single filer earning $120,000 of taxable income, you do not pay 7.85% on all of it. You pay 5.35% on the first $33,310, 6.80% on the next slice up to $109,430, and 7.85% only on the final $10,570. Your effective rate — what you actually pay as a share of income — is much lower than your top marginal rate.

Minnesota starts from your federal adjusted gross income (AGI), then applies its own standard deduction or itemized deductions, plus dependent exemptions, to reach Minnesota taxable income. With the exception of the state and local tax deduction, Minnesota generally allows the same itemized deductions as the federal return.

Minnesota income tax brackets for 2026 (official)

These are the official tax-year 2026 figures published by the Minnesota Department of Revenue. The rates are unchanged from prior years; the thresholds were indexed upward by 2.369% for inflation.

Tax rate	Single	Married filing jointly	Married filing separately	Head of household
5.35%	Up to $33,310	Up to $48,700	Up to $24,350	Up to $41,010
6.80%	$33,311 – $109,430	$48,701 – $193,480	$24,351 – $96,740	$41,011 – $164,800
7.85%	$109,431 – $203,150	$193,481 – $337,930	$96,741 – $168,965	$164,801 – $270,060
9.85%	Over $203,150	Over $337,930	Over $168,965	Over $270,060

Note how wide the brackets are compared with many states: a single filer does not reach the top 9.85% rate until taxable income passes $203,150. That is why Minnesota’s system feels progressive in practice, not just on paper — middle-income filers spend most of their income in the two lowest brackets.

Standard deduction and dependent exemption for 2026

Before any bracket rate applies, you shrink your taxable income with deductions:

Single: $15,300 standard deduction
Married filing jointly: $30,600
Married filing separately: $15,300
Head of household: $23,000
Dependent exemption: $5,300 per dependent

Minnesota sets its own standard deduction, which is separate from the federal amount — for 2026, Minnesota’s single standard deduction of $15,300 sits close to the federal figure but is not identical to it. Additional standard deduction amounts apply if you are 65 or older or blind; check the Department of Revenue’s website for those figures.

Minnesota does not offer a separate personal exemption beyond the dependent exemption, so the standard deduction and dependent exemptions do most of the work of lowering taxable income for typical filers.

How to calculate your Minnesota income tax by hand

Follow these steps with a worked example: a single filer with $100,000 of federal AGI and no dependents.

Step 1: Start with federal AGI. Our example starts at $100,000.

Step 2: Subtract the standard deduction. $100,000 − $15,300 = $84,700 of Minnesota taxable income.

Step 3: Apply the brackets, slice by slice.

5.35% on the first $33,310 = $1,782.09
6.80% on the next $51,390 ($84,700 − $33,310) = $3,494.52
Total Minnesota tax = $5,276.61, roughly $5,277

Step 4: Read the result. The effective rate is about 5.28% of gross income — far below the 6.80% marginal rate this filer actually tops out at. That gap between marginal and effective rates is exactly why “I moved into a higher bracket” rarely means what people fear it means.

Want the number for your own situation without the arithmetic? Our free Minnesota income tax calculator runs the same calculation instantly for any income and filing status.

What else affects your Minnesota bill

Social Security benefits. Minnesota fully subtracts taxable Social Security benefits at federal AGI up to $86,410 for single filers ($110,780 joint) for 2026, with the subtraction phasing out above those thresholds. This is a meaningful break for retirees that many other states do not offer in the same form.

Capital gains. Minnesota taxes capital gains as ordinary income — there is no preferential state rate, so gains can be taxed up to 9.85%. An additional 1% tax applies to net investment income above $1 million.

Itemized deductions. If your itemized deductions exceed the standard deduction, itemizing saves money. Remember that itemized deductions phase out at higher incomes — for most filers the phase-out begins at $238,950 of federal AGI ($119,475 for married filing separately).

Estimated payments. If you will owe tax and you make estimated quarterly payments, use the 2026 brackets for payments due starting April 2026. Underpaying estimates can trigger penalties, so revisit your withholding whenever your income changes.

Planning moves for 2026

A few moves are worth considering before year-end. Pre-tax 401(k) contributions, HSA contributions, and payroll health premiums lower your federal AGI, which lowers Minnesota tax too — for a filer in the 6.80% bracket, each traditional 401(k) dollar saves 6.8 cents in state tax on top of the federal savings. If you are near a bracket boundary, timing a bonus, a Roth conversion, or a capital-gain sale across the year-end line can keep income in a lower bracket. And if you itemize, bunching deductible expenses into a single year can push you over the standard deduction threshold.

None of this requires a professional for most filers — but if your situation involves business income, rental properties, or multi-state filings, a Minnesota tax professional earns their fee quickly.

These brackets apply to income earned in calendar year 2026, which most people report when filing 2026 returns in 2027. Keep your pay stubs, W-2s, and 1099s organized now, and filing season becomes a formality rather than a scramble.

Frequently asked questions

What are Minnesota’s income tax rates for 2026?

Minnesota has four rates for 2026: 5.35%, 6.80%, 7.85%, and 9.85%. The rates did not change from prior years; only the bracket thresholds were adjusted upward for inflation.

What is Minnesota’s standard deduction for 2026?

For 2026 it is $15,300 for single filers, $30,600 for married couples filing jointly, $15,300 for married filing separately, and $23,000 for heads of household, plus a $5,300 dependent exemption.

How do I estimate my 2026 Minnesota income tax?

Start with federal adjusted gross income, subtract Minnesota’s standard deduction (or itemized deductions) and dependent exemptions, then apply the bracket rates to the remainder. Our free Minnesota income tax calculator does the math instantly.

Are the figures in this article the official 2026 amounts?

Yes. The brackets, rates, and deduction amounts shown here are the official tax-year 2026 figures published by the Minnesota Department of Revenue in its inflation-adjustment release.

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Written by the DollarWise team

We turn confusing money topics into plain-English guides for beginners. Every article is written to be actionable on day one — no jargon, no hype, no sales pitch.