Tax Year 2026Updated July 21, 2026

Minnesota Tax Calculator & Rates 2026

Q: What are Minnesota's income tax rates for 2026?

Minnesota uses a graduated income tax with four brackets : 5.35%, 6.80%, 7.85%, and 9.85%. The top rate of 9.85% is one of the higher state income tax rates in the nation. Brackets are indexed annually for inflation by MN DOR.

Q: Does Minnesota conform to the OBBBA tips and overtime deductions?

No - Minnesota does not currently conform. Minnesota uses a fixed IRC conformity date that predates the OBBBA (enacted 2025). Workers who claim the federal tips or overtime deduction must add those amounts back on their Minnesota Form M1. The deductions reduce federal taxable income but do not reduce Minnesota taxable income unless the legislature acts to adopt conformity.

Q: What is Minnesota's sales tax rate?

Minnesota's state sales tax rate is 6.88% . Some localities add their own sales taxes on top. Food and food ingredients for home consumption (groceries) are exempt from Minnesota sales tax. Prepared food, candy, and soft drinks remain taxable.

Q: Does Minnesota tax Social Security benefits?

No. Minnesota fully exempts Social Security benefits from state income tax, effective tax year 2024 (SF 2677, enacted 2023). This was one of the largest recent Minnesota income tax changes. Previously, Minnesota taxed a portion of Social Security for higher-income retirees.

Q: What is Minnesota's supplemental withholding rate for bonuses?

Minnesota's supplemental withholding rate is 6.25% . This applies to supplemental wages including bonuses, commissions, and other irregular payments. Employers should use this rate when withholding on payments that are separate from regular wages.

Minnesota imposes a graduated income tax with four brackets, reaching a top rate of 9.85% - among the higher rates in the nation. Brackets are indexed annually for inflation. Minnesota does not conform to the OBBBA tips and overtime deductions due to a fixed IRC conformity date predating the OBBBA. State sales tax rate is 6.88%.

State Income Tax

5.35% – 9.85%

Supplemental Rate

6.25%

State Sales Tax

6.88% + local

Minnesota Income Tax Brackets 2026

Minnesota has four graduated brackets indexed annually for inflation. Minnesota gross income starts from federal gross income with Minnesota-specific modifications - not federal AGI or federal taxable income.

Taxable Income (Single)	Rate
$0 – $33,310	5.35%
$33,310 – $109,430	6.80%
$109,430 – $203,150	7.85%
Over $203,150	9.85%

Minnesota Sales Tax

Minnesota's state sales tax rate is 6.88%. Some cities and special districts levy additional local sales taxes. Food and food ingredients for home consumption are exempt from Minnesota sales tax.

Minnesota Tax Calculators

Minnesota Paycheck Calculator Minnesota Tips Tax Minnesota Overtime Tax

Frequently Asked Questions

What are Minnesota's income tax rates for 2026?

Minnesota uses a graduated income tax with four brackets: 5.35%, 6.80%, 7.85%, and 9.85%. The top rate of 9.85% is one of the higher state income tax rates in the nation. Brackets are indexed annually for inflation by MN DOR.

Does Minnesota conform to the OBBBA tips and overtime deductions?

No - Minnesota does not currently conform. Minnesota uses a fixed IRC conformity date that predates the OBBBA (enacted 2025). Workers who claim the federal tips or overtime deduction must add those amounts back on their Minnesota Form M1. The deductions reduce federal taxable income but do not reduce Minnesota taxable income unless the legislature acts to adopt conformity.

What is Minnesota's sales tax rate?

Minnesota's state sales tax rate is 6.88%. Some localities add their own sales taxes on top. Food and food ingredients for home consumption (groceries) are exempt from Minnesota sales tax. Prepared food, candy, and soft drinks remain taxable.

Does Minnesota tax Social Security benefits?

No. Minnesota fully exempts Social Security benefits from state income tax, effective tax year 2024 (SF 2677, enacted 2023). This was one of the largest recent Minnesota income tax changes. Previously, Minnesota taxed a portion of Social Security for higher-income retirees.

What is Minnesota's supplemental withholding rate for bonuses?

Minnesota's supplemental withholding rate is 6.25%. This applies to supplemental wages including bonuses, commissions, and other irregular payments. Employers should use this rate when withholding on payments that are separate from regular wages.