Minnesota · the numbers
Minnesota figures at a glance, 2026
Every Minnesota number for the 2026 return in one place: the four brackets by filing status, the standard deduction and dependent exemption, the Social Security and pension subtractions, the credits and their income limits, the estate tax line, the dates, and a short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from Minnesota Department of Revenue sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a Minnesota practitioner
Minnesota publishes its individual income tax figures in one release each December, and everything indexed moved 2.369% for 2026. The rates did not change: 5.35%, 6.8%, 7.85% and 9.85%, plus a 1% tax on net investment income over $1,000,000. The standard deduction is $30,600 joint and $15,300 single, the dependent exemption is $5,300, Social Security is fully subtracted up to $110,780 of adjusted gross income on a joint return, and the Child Tax Credit is $1,800 per child. The 2027 figures arrive in December 2026. The one 2026 figure still unpublished as of this writing is the maximum Homestead Credit Refund on Form M1PR; the 2025 maximum was $3,480.
Rates and brackets
| Rate | Married filing jointly / surviving spouse | Single | Head of household | Married filing separately |
|---|---|---|---|---|
| 5.35% | $0 – $48,700 | $0 – $33,310 | $0 – $41,010 | $0 – $24,350 |
| 6.8% | $48,700 – $193,480 | $33,310 – $109,430 | $41,010 – $164,800 | $24,350 – $96,740 |
| 7.85% | $193,480 – $337,930 | $109,430 – $203,150 | $164,800 – $270,060 | $96,740 – $168,965 |
| 9.85% | over $337,930 | over $203,150 | over $270,060 | over $168,965 |
| Net investment income tax | 1% of net investment income over $1,000,000, all filing statuses, Schedule NIIT | |||
Brackets apply to Minnesota taxable income: federal adjusted gross income, plus additions and minus subtractions on Schedule M1M, minus the Minnesota standard or itemized deduction and the dependent exemption. Capital gains and dividends are taxed at these same rates. No city or county in Minnesota taxes income.
Deductions and exemptions
| Item | 2026 | Note |
|---|---|---|
| Standard deduction, married filing jointly or qualifying surviving spouse | $30,600 | Minnesota’s own figure; your federal choice to itemize or not does not bind you |
| Standard deduction, head of household | $23,000 | |
| Standard deduction, single or married filing separately | $15,300 | |
| Additional standard deduction, 65 or older or blind | $1,600 / $2,000 | $1,600 per spouse on a joint return; $2,000 single or head of household. Minnesota’s only age break of general reach |
| Dependent’s standard deduction | $1,300 or earned income + $350 | Whichever is greater, up to the regular amount |
| Standard and itemized deductions begin to phase down at AGI | $244,400 | $122,200 married filing separately; a second step at $337,800; capped at an 80% reduction above $1,107,750 |
| Dependent exemption, per dependent | $5,300 | No personal exemption for the filer or spouse |
| Dependent exemption phases out above AGI | $366,700 / $305,600 / $244,500 / $183,350 | Joint / head of household / single / separate |
| Property tax on Schedule M1SA | Up to $10,000 | $5,000 married filing separately; state income and sales tax are never deductible for Minnesota |
| Charitable deduction floor | 1% of AGI | New for 2026; applies to Schedule M1SA and to the nonitemizer subtraction (50% of gifts over $500) on Schedule M1M |
| K-12 education subtraction, per child | $1,625 K–6 / $2,500 grades 7–12 | No income limit; private school tuition qualifies |
| 529 contribution subtraction | $1,500 / $3,000 joint | Or a 50% credit up to $500 for AGI of $98,410 or less; one or the other, Schedule M1529 |
Retirement income
| Item | 2026 | Note |
|---|---|---|
| Social Security fully subtracted when AGI is at or below | $110,780 joint / $86,410 single or head of household / $55,390 separate | Simplified method, Schedule M1M; the subtraction drops 10% for each $4,000 of AGI over the line ($2,000 steps if separate) |
| Social Security subtraction fully gone at AGI | $150,780 joint / $126,410 single | Above the threshold the older alternative method may still give a small amount: a maximum of $5,840 joint / $4,560 single, phased out above provisional income of $88,630 / $69,250 |
| Pensions, IRAs, 401(k)s, Roth conversions | Fully taxable | No general retirement exclusion at any age |
| Military retirement pay | 100% subtracted | Schedule M1M; or the Credit for Past Military Service of up to $750 instead (verify) |
| Qualified public pension subtraction, maximum | $27,690 joint / $13,850 single | Schedule M1QPEN; PERA, TRA, police and fire, State Patrol, federal CSRS and similar, only for service that did not also earn Social Security; phases out above $110,780 / $86,410 of AGI, gone at $129,779 / $105,409 |
| Age 65 or older/disabled subtraction, Schedule M1R | Up to $12,000 joint / $9,600 single | Only when AGI is under $42,000 joint (both 65+) / $33,700 single and nontaxable Social Security is under $12,000 / $9,600; reaches few retirees |
| Railroad Retirement Board benefits | 100% subtracted |
Credits
| Credit | Figure | Refundable? | Income limit |
|---|---|---|---|
| Child Tax Credit, per child under 18 | $1,800 | Yes | With the Working Family Credit, reduced by 12% of income above $38,770 joint / $32,680 other; one child gone at about $56,065 / $50,905, two at $71,065 / $65,905, three at $86,065 / $80,905 |
| Working Family Credit, no children (ages 19–64) | 4% of the first $9,690 of earned income, maximum $388 | Yes | Gone at $35,913 single / $42,000 joint |
| Working Family Credit, qualifying older children 18–24 | $1,020 / $2,330 / $2,770 for one / two / three or more | Yes | Same 12% phase-out |
| Child and dependent care credit, Schedule M1CD | 35% to 20% of up to $3,000 / $6,000 of expenses; maximum $1,050 / $2,100 | Yes | Reduced by 5% of AGI over $65,610; gone at $77,610 (one) / $89,610 (two or more) |
| K-12 Education Credit, Schedule M1ED | 75% of qualifying expenses, up to $1,500 per child; not tuition | Yes | Full at AGI of $77,550 or less; gone at $83,550 for one or two children, $86,550 for three, plus $3,000 per additional child; not for married filing separately |
| Renter’s Credit, Schedule M1RENT | Table amount based on 17% of rent paid; maximum $2,780 | Yes | Household income under $79,330; needs the Certificate of Rent Paid |
| Marriage Credit, Schedule M1MA | Maximum $1,894 | No | Joint filers; lower earner has at least $31,000 of earned, pension or Social Security income and joint taxable income is at least $49,000 |
| 529 contribution credit, Schedule M1529 | 50% of contributions, up to $500 | No | Full at AGI of $98,410; gone at $123,410 (other) or $202,140 (joint) |
| Student Loan Credit, Schedule M1SLC | Up to $500 per person | No | Reduced by 10% of AGI over $10,000; needs earned income |
| Long-Term Care Insurance Credit, Schedule M1LTI | Up to $100 per person | No | |
| Credit for taxes paid to another state | Schedule M1CR (Wisconsin: Schedule M1RCR) | No | Does not offset the 1% net investment income tax |
| Credit for parents of stillborn children | $2,000 | Yes |
Refundable credits are claimed on Schedule M1REF, nonrefundable ones on Schedule M1C. Minnesota has no state energy, electric vehicle or solar income tax credit (verify); state help for those comes as rebates outside the return.
Beyond the income tax
| Item | 2026 |
|---|---|
| Homestead Credit Refund, Form M1PR (homeowners) | Household income under $147,110 for the 2026 M1PR filed in 2027; maximum refund to come (the 2025 maximum was $3,480, with a $142,490 income limit); seniors born before January 2, 1962 and the disabled subtract $5,300 from household income |
| Special refund (“targeting”), Schedule M1PR-SR | Up to $1,000 when the net property tax rose more than 12% and at least $100; no income limit |
| Senior Citizens’ Property Tax Deferral | 65 or older (spouse 62), household income $96,000 or less, five years owned and homesteaded; pays no more than 3% of income; apply to the county by November 1 |
| Estate tax exclusion | $3,000,000, not indexed, not portable; federal taxable gifts within three years of death are added back; rates 13% to 16%; qualified small business or farm deduction up to $2,000,000; no inheritance tax, no gift tax |
| State sales tax | 6.875%, plus local taxes of up to about 3%; clothing, most groceries and prescription drugs exempt |
| Reciprocal states for wages | Michigan and North Dakota only; Form MWR to the employer |
| Resident filing threshold (gross income) | $15,300 single ($17,300 if born before January 2, 1962); $30,600 joint ($32,200 with one spouse 65+, $33,800 with both); $23,000 head of household ($25,000); $5 married filing separately |
| Part-year and nonresident filing threshold | $15,300 of Minnesota-source gross income, Form M1 with Schedule M1NR |
Dates
| Date | What |
|---|---|
| January 15, 2027 | Fourth 2026 estimated payment |
| April 15, 2027 | Form M1 and all 2026 tax due; first 2027 estimated payment |
| June 15, 2027 | Second 2027 estimated payment |
| August 16, 2027 | Form M1PR, Homestead Credit Refund, due (August 15 is a Sunday) |
| September 15, 2027 | Third 2027 estimated payment |
| October 15, 2027 | Last day to file Form M1 without the 5% late-filing penalty; no extension form is needed |
Estimated payments are required when you expect to owe $500 or more after withholding and credits. Full detail, with the forms, is in Minnesota calendar and forms.
Worked example: what the 2026 figures do for a family of four
A married couple in Rochester with two children, ages 8 and 12, have $96,000 of wages and $1,200 of interest. Federal adjusted gross income is $97,200. They take the Minnesota standard deduction.
| 2026 | |
|---|---|
| Federal adjusted gross income | $97,200 |
| Minnesota standard deduction, joint | −$30,600 |
| Dependent exemptions, 2 × $5,300 | −$10,600 |
| Minnesota taxable income | $56,000 |
| Tax at 5.35% on the first $48,700 | $2,605 |
| Tax at 6.8% on the next $7,300 | $496 |
| Minnesota income tax | $3,101 |
| Child Tax Credit | $0 (income above the phase-out) |
| Effective Minnesota rate on AGI | 3.2% |
Each $5,300 dependent exemption is worth $360 at this couple’s 6.8% marginal rate. The $1,800 Child Tax Credit is gone for them; it is a low-income credit that phases out from $38,770 of joint income. If they paid $3,000 of day care for the 8-year-old, the Schedule M1CD credit would also be zero at this income.
What changed from 2025
Indexing, 2.369%. Brackets, standard deduction and dependent exemption all moved. The Social Security full-subtraction threshold rose from $108,320 to $110,780 joint and from $84,490 to $86,410 single.
Child Tax Credit, $1,750 to $1,800. Indexed for the first time under Minnesota Statutes 290.0661; the Department’s web page still shows the 2025 figure.
Charitable 1% floor. New. Gifts count only above 1% of adjusted gross income, for itemizers and for the nonitemizer subtraction.
Dependent care credit. Minnesota kept the pre-2025 federal formula rather than adopt the federal expansion; the maximum stays $1,050 / $2,100.
New add-backs. Employer student-loan payments and educational assistance above $5,250; 529 withdrawals for postsecondary credentialing; transportation fringe benefits above the pre-2025 limit; certain hazard-duty pay.
Bonus depreciation. Minnesota conforms to permanent 100% bonus with its 80% add-back and five-year recovery; section 179 at $2,500,000 with no add-back.
Pass-through entity tax revived for 2026 and 2027.
Unchanged: the four rates, the 1% net investment income tax, the $3,000,000 estate exclusion, the Renter’s Credit formula, the K-12 credit and subtraction amounts, reciprocity with Michigan and North Dakota, and the absence of any Minnesota deduction for tips, overtime, the federal senior deduction or car-loan interest. For the full story see What’s new in Minnesota for 2026.
Behind the scenes: where the 2.369% comes from
Minnesota indexes its brackets, standard deduction, dependent exemption and the Social Security thresholds to the chained consumer price index, the same measure the IRS uses for the federal brackets, with the rounding fixed by statute: brackets to the nearest $10, the standard deduction and dependent exemption to $50, the child credit to $60 (verify). That is why the Minnesota figures are odd numbers that do not line up with the federal ones, and why the child credit jumped $50 in one step after three flat years. Figures that are not indexed, such as the $3,000,000 estate exclusion, the $10,000 property-tax deduction cap and the income limits on the Schedule M1R age-65 subtraction, move only when the Legislature votes.
What to bring
- Last year’s Form M1 and any Schedule M1M, M1SA and M1REF, to compare figures line by line
- Dates of birth for everyone on the return; the extra standard deduction and the filing threshold depend on them
- Form SSA-1099 and pension 1099-Rs, with the plan names, for the Social Security and public pension subtractions
- The property tax statement payable in 2027 for Form M1PR, or the Certificate of Rent Paid for Schedule M1RENT
- K-12 receipts by child, and 529 contribution statements
- Estimated payment confirmations, with dates
Questions people ask
What is the Minnesota standard deduction for 2026?
$30,600 married filing jointly or qualifying surviving spouse, $23,000 head of household, $15,300 single or married filing separately, plus $1,600 per spouse or $2,000 for a single or head-of-household filer who is 65 or older or blind. It phases down above $244,400 of adjusted gross income.
What is the top Minnesota income tax rate?
9.85%, on taxable income over $337,930 joint or $203,150 single for 2026. Net investment income over $1,000,000 carries an additional 1%.
Is my Social Security taxed by Minnesota?
Not if your adjusted gross income is $110,780 or less on a joint return or $86,410 or less single; all federally taxable benefits are subtracted. Above those lines the subtraction fades out by 10% per $4,000 and is gone at $150,780 joint or $126,410 single.
How much is the Minnesota Child Tax Credit?
$1,800 per child under 18 for 2026 by the Department’s indexed figure, refundable, with no cap on the number of children. It phases out at 12% of income above $38,770 joint or $32,680 other, so a one-child family loses it entirely around $56,000 of joint income.
Does Minnesota have a personal exemption?
Not for the filer or spouse. It has a $5,300 exemption for each dependent, phased out at high incomes, and a standard deduction that does the work of the personal exemption.
When do the 2027 figures come out?
The Department of Revenue releases the next year’s indexed amounts in mid-December. Until then, use the 2026 figures here for planning and expect a rise of a few percent.
Four rates, one December release, and a Social Security line at $110,780
Know which bracket your Minnesota taxable income lands in and whether your AGI clears the Social Security line, and most Minnesota planning is done.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
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