Minnesota Taxes 2025
Complete tax guide and OBBBA calculator for MN residents
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Minnesota Tax Overview 2025
State Income Tax
5.35% - 9.85%
Graduated rate structure
Combined Sales Tax
7.48%
State 6.88% + Local 0.60%
Avg Property Tax
1.12%
Above average property taxes
💼 Minnesota Income Tax 2025
Minnesota has graduated income tax rates from 5.35% to 9.85%.
When filing your Minnesota state tax return, your income tax liability depends on your taxable income and filing status. Minnesota uses a graduated income tax structure.
Minnesota Income Tax Quick Facts
🛒 Minnesota Sales Tax 2025
Minnesota's combined average sales tax rate is 7.48%, which includes both state and local components. The state sales tax rate is 6.88%, while local jurisdictions add an average of 0.60%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Minnesota Property Tax 2025
Minnesota's average effective property tax rate is 1.12%. Above average property taxes.
Property taxes in Minnesota are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $2,800 | $233 |
| $400,000 | $4,480 | $373 |
| $600,000 | $6,720 | $560 |
OBBBA Tax Benefits for Minnesota Residents
Minnesota's high income tax makes OBBBA deductions particularly valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Minnesota residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for MN Residents:
Calculate Your Minnesota Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Minnesota resident.
Calculate My SavingsHow Minnesota Compares
| Tax Type | MN Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 5.35% - 9.85% | 5.1% | Varies |
| Sales Tax | 7.48% | 7.12% | Above Avg |
| Property Tax | 1.12% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in Minnesota?
Minnesota has a graduated income tax with rates of 5.35% - 9.85%. Minnesota has graduated income tax rates from 5.35% to 9.85%.
What is the sales tax in Minnesota?
The combined average sales tax rate in Minnesota is 7.48%. This includes the state rate of 6.88% plus an average local rate of 0.60%.
How do OBBBA deductions benefit Minnesota residents?
Minnesota's high income tax makes OBBBA deductions particularly valuable. Minnesota residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Minnesota taxes due?
For tax year 2025, Minnesota state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.