Minnesota · 2027 and beyond
Minnesota in 2027 and beyond: what is already law, and what is still open
No tax measure on the ballot. Figures were indexed for 2026; a state-run free filing system arrives for 2027 returns. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Minnesota Department of Revenue sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Minnesota practitioner
No tax measure on the ballot. Figures were indexed for 2026; a state-run free filing system arrives for 2027 returns. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in Minnesota. Nothing voted on that day changes a Minnesota return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | Brackets, the standard deduction and the dependent exemption rose 2.369%; the child tax credit is $1,800 a child. |
| Charitable gifts count only above 1% of income, for itemizers and non-itemizers alike. | |
| Minnesota has its own dependent care credit and has revived the elective pass-through entity tax. | |
| The federal deductions for tips, overtime, seniors and car-loan interest do not reach Form M1. | |
| Starting with tax year 2027 | A free state-run electronic filing system, with no income limit, opens for tax year 2027 returns. |
| The pass-through entity tax election continues for its last year. | |
| 2028 and later, or conditional | The pass-through entity tax ends after 2027 unless extended. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Minnesota articles.
The 2025 federal law and the Minnesota return
The 2026 tax bill conformed Minnesota to the federal code as of May 1, 2026, with add-backs for several items including 80% of bonus depreciation. The return starts from federal AGI and uses only Minnesota’s own deductions.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the Minnesota return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
The 2027 budget session, the first under the newly elected governor and Legislature. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and Minnesota returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the Minnesota return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Minnesota, after the election
No tax measure on the ballot. Figures were indexed for 2026; a state-run free filing system arrives for 2027 returns.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
Questions about this article in Minnesota are answered by [your practice name] · [your phone] · [your email address]. We’re looking for an EA or CPA in each Minnesota city to hold that city’s seat and take this spot — is that you?
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Sources and where to check
- Minnesota Department of Revenue: Inflation-Adjusted Amounts for Tax Year 2026 (December 2025)
- Minnesota Department of Revenue: 2026 Form M1 instructions (draft, October 14, 2026)
- Minnesota Department of Revenue: Revenue Analysis, Omnibus Tax Bill HF 2438 / SF 2082 as enacted (May 2026)
- Minnesota Department of Revenue: 2026 Form M1PR instructions (draft)
- Minnesota Department of Revenue: Social Security Benefit Subtraction