Comprehensive statutory analysis of Minnesota individual income tax rates, Department of Revenue filing forms, extension guidelines, telecommuting sourcing rules, and pass-through entity tax provisions.
Primary Resident FormForm M1 (Individual Income Tax Return)
Nonresident FormSchedule M1NR (Nonresidents and Part-Year Residents)
Convenience of Employer RuleNo
Reciprocity AgreementsMI, ND
Community Property StateCommon Law
State Estate/Inheritance TaxYes (Separate State Tax)
QSBS IRC § 1202 ConformityState Specific / Under Review
Marginal Rate Ladder: Minnesota
Source: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026 (retrieved 2026-08-09). Ranks Minnesota against all 51 jurisdictions.
2026 Legislative & Statutory Highlights
Minnesota enforces a progressive 4-bracket income tax with a top marginal rate of 9.85%. High-earning households are also subject to Minnesota's Net Investment Income Tax surtax (1.0% surtax on net investment income over $1,000,000).
Minnesota operates a graduated personal income tax schedule with marginal brackets reaching up to 9.8%. Tax parameters are indexed annually or enacted through state legislative sessions. Taxpayers should ensure that adjustments for federal bonus depreciation, Section 179 expensing, and Net Operating Loss (NOL) carryforwards follow Minnesota's specific rolling or static Internal Revenue Code conformity date.
Filing Forms, Deadlines & Extension Guidelines
Full-Year Resident ReturnForm M1 (Individual Income Tax Return)
Nonresident / Part-Year ReturnSchedule M1NR (Nonresidents and Part-Year Residents)
Statutory Filing Calendar & Extension Provisions:Automatic 6-month extension to file until October 15 without filing an application form. 100% of tax must be paid by April 15.
Minnesota taxes residents on all income. Nonresidents performing services physically in Minnesota are subject to Minnesota tax. Minnesota has a reciprocal agreement with Michigan and North Dakota.
Cross-Border Tax Credits:If you are an Minnesota resident earning wages in another state that also levies income tax, Minnesota generally permits a resident credit for taxes paid to other jurisdictions (subject to statutory percentage limitations) to avoid unconstitutional double taxation.
Pass-Through Entity (PTE) Tax & Small Business Rules
Minnesota allows pass-through entities to elect into the PTE Tax at a flat 9.85% rate, allowing business owners full federal tax relief.
Estate & Inheritance Tax
Minnesota levies a state estate tax with a $3,000,000 exemption threshold and graduated tax rates from 13% to 16%.
Local & County Taxes
Minnesota municipalities do not impose local personal income taxes.
Worked Tax Example: $120,000 W-2 Earner in Minnesota
A single resident in Minneapolis earning $120,000 pays approximately $6,980 in Minnesota state income tax across the state graduated brackets, representing an effective state rate of 5.82%.
Gross W-2 Wages$120,000
Est. State Tax$6,980
Effective State Rate5.82%
Calculate Your 2026 Minnesota Tax Liability
Enter your taxable income, filing status, and municipal details below to calculate your customized state tax liability and print your executive summary.
Structure
graduated
Top rate
9.8%
State tax
$4,984
Eff. rate (state+local)
6.2%
4-bracket graduated system, top marginal 9.85% (Tax Foundation). Adds a 1% surtax on net investment income above $1,000,000 (not in topRate). 2026 thresholds inflation-indexed — verify against MN DOR.
⚠ Some figures for this state are not yet fully verified — confirm with the state Department of Revenue before relying on them.
Official Executive Tax Dossier · Form 1040 Statutory Mapping
2026 Executive Minnesota State Tax Audit Summary
STATUTORY SEAL:FT-2026-IRS-13044892IRS Rev. Proc. 2025-32 Verified
Gross Income$80,000
Taxable Income$80,000
Total Combined Tax$4,984
Effective Total Rate6.2%
Statutory Governing Authority: Minnesota Department of Revenue Statutory Tax Code · Top Marginal Rate: 9.8% · Tax Foundation 2026 State Tax Rates & Brackets Report
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Your tax results depend on the full set of facts, your filing history, and the jurisdiction-specific rules that shift yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Does Minnesota have a state personal income tax in 2026?
Yes. Minnesota operates a graduated personal income tax schedule with marginal brackets reaching up to 9.8%. Taxpayers must file an annual return if gross income exceeds statutory filing thresholds.
What is the 2026 individual income tax filing deadline for Minnesota?
The regular filing deadline for Minnesota individual income tax returns is April 15, 2026. Taxpayers seeking an extension may receive up to 6 additional months to file, but any tentative tax due must be paid by the original deadline to prevent late-payment interest and statutory penalties.
How does Minnesota treat remote workers and telecommuters?
Minnesota taxes residents on all income. Nonresidents performing services physically in Minnesota are subject to Minnesota tax. Minnesota has a reciprocal agreement with Michigan and North Dakota.
Can small business owners in Minnesota bypass the federal $10,000 SALT cap?
Minnesota allows pass-through entities to elect into the PTE Tax at a flat 9.85% rate, allowing business owners full federal tax relief.
Does Minnesota impose a separate estate or inheritance tax?
Minnesota levies a state estate tax with a $3,000,000 exemption threshold and graduated tax rates from 13% to 16%.
Source-verified — not professional advice
Every figure on this page is checked in-house against its primary source — IRS revenue procedures and publications, state Departments of Revenue, and the text of the underlying statute — before publication. Last reviewed 2026-10-20. The full source list is at the bottom of this page. If you spot an error, see our corrections & standards policy.
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Your tax results depend on the full set of facts, your filing history, and the jurisdiction-specific rules that shift yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.