Minnesota State Income Tax Rates and Brackets for 2025 Explained

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Key Takeaways

• Minnesota’s 2025 income tax rates range from 5.35% to 9.85% across four brackets.
• House File 812 could eliminate the lowest tax bracket, making first $32,700 tax-free for singles.
• Changes affect residents, immigrants, employers, and temporary workers paying Minnesota state income tax.

Minnesota’s state income tax system is undergoing important discussions and possible changes for the 2025 tax year. These updates are especially important for immigrants, new residents, and anyone planning to move to Minnesota, as state income tax can affect everything from take-home pay to eligibility for certain benefits. Understanding the latest tax brackets, proposed changes, and what actions you may need to take will help you plan ahead and avoid surprises.

Let’s break down what’s changing, who will be affected, when these changes might take place, and what you should do if you’re living in Minnesota or thinking about moving there.

Minnesota State Income Tax Rates and Brackets for 2025 Explained

Summary of What Changed

For 2025, Minnesota’s state income tax system continues to use four tax brackets, with rates ranging from 5.35% to 9.85%. These brackets are adjusted each year for inflation, so the income levels that fall into each bracket can change slightly from year to year. The state is also considering a new proposal, House File 812 (HF812), which could remove the lowest tax bracket entirely. If this proposal passes, it would mean that the first $32,700 of income for single filers and $47,620 for married couples would not be taxed by the state. This is a big potential change that could affect many people, especially those with lower incomes.

Current State Income Tax Rates and Brackets for 2025

As of 2025, Minnesota’s state income tax rates and brackets for single filers are:

5.35%: Taxable income up to $32,570
6.80%: Taxable income between $32,571 and $106,990
7.85%: Taxable income between $106,991 and $198,630
9.85%: Taxable income above $198,630

For married couples filing jointly, the brackets are similar but the income ranges are higher. While the exact numbers for married filers in 2025 have not been published yet, Minnesota usually adjusts these brackets to make sure couples are not unfairly taxed compared to single filers.

Who Is Affected by These Changes?

These tax rates and any proposed changes affect:

Current Minnesota residents: Anyone earning income in Minnesota must pay state income tax, including citizens, green card holders, and many visa holders.
New immigrants and international workers: If you move to Minnesota for work or family reasons, you will need to pay state income tax on your Minnesota income.
Employers: Companies hiring workers in Minnesota must withhold the correct amount of state income tax from paychecks.
Students and temporary workers: Even if you are in Minnesota on a student or work visa, you may need to file a state tax return and pay taxes on your earnings.
People planning to move to Minnesota: Understanding the state income tax system can help you plan your finances before you arrive.

Effective Dates

The current tax brackets and rates apply to income earned in the 2025 tax year.
Any changes from House File 812 or other proposals would take effect for the 2025 tax year if passed by the Minnesota Legislature and signed into law.
Tax returns for 2025 income will be filed in early 2026, so you have time to prepare for any changes.

Required Actions for Residents and Newcomers

If you live in Minnesota or plan to move there, here’s what you should do:

Check Your Tax Withholding: Make sure your employer is withholding the correct amount of Minnesota state income tax from your paycheck. If you are self-employed, plan to make estimated tax payments.
Stay Informed About Legislative Changes: Follow updates from the Minnesota Department of Revenue and the state legislature to see if HF812 or other proposals become law.
File Your State Tax Return: Every year, you must file a Minnesota state income tax return if you earn income in the state. The main form is the Minnesota Individual Income Tax Form M1.
Consult a Tax Professional if Needed: If you are new to the United States 🇺🇸 or Minnesota, or if you have complex income (like from investments or multiple jobs), consider getting help from a tax expert.
Plan for Possible Refunds or Payments: If the lowest tax bracket is removed, you may owe less tax or get a bigger refund. However, if you are in a higher bracket, your tax situation may not change as much.

Implications for Pending Applications and New Arrivals

If you are applying for a visa, green card, or other immigration status and plan to live in Minnesota, understanding the state income tax system is important. Here’s why:

Proof of Income: Many immigration applications require proof of income and tax compliance. You may need to show state tax returns as part of your application.
Public Benefits: Some state benefits are only available to people who file and pay state taxes.
Financial Planning: Knowing how much tax you will pay helps you plan for housing, education, and other expenses.

If you are already in Minnesota and waiting for a decision on your immigration status, continue to file your state tax returns on time. This shows you are following the law and can help your case.

Details on the Proposed Changes: House File 812

House File 812 is a bill being discussed in the Minnesota Legislature. The main idea is to remove the lowest income tax bracket, which would mean:

The first $32,700 of income for single filers would not be taxed by the state.
The first $47,620 of income for married couples filing jointly would not be taxed by the state.

Supporters of the bill, like Rep. Mike Wiener, say this would help low-income families and make Minnesota more attractive to workers and businesses. They argue that lower taxes could encourage more people to stay in Minnesota instead of moving to other states.

However, the Minnesota Revenue Department estimates that this change would reduce the state’s General Fund by about $3.79 billion in 2025. Critics worry that this could lead to cuts in important services like schools, healthcare, and public safety. Some experts also say that the biggest benefits might go to higher-income people, since everyone gets the same amount of income tax-free.

How the Current System Works

Minnesota’s income tax system is “progressive,” which means people with higher incomes pay a higher percentage of their income in taxes. The four brackets for 2025 are designed to make sure that people who earn less pay a lower rate, while those who earn more pay a higher rate.

Here’s a simple example for a single filer in 2025:

If you earn $30,000, you pay 5.35% on all your taxable income.
If you earn $50,000, you pay 5.35% on the first $32,570, and 6.80% on the amount between $32,571 and $50,000.
If you earn $120,000, you pay 5.35% on the first $32,570, 6.80% on the next $74,419, and 7.85% on the amount between $106,991 and $120,000, and so on.

If HF812 passes, the first $32,700 would not be taxed at all, so you would only pay tax on the amount above that.

Why This Matters for Immigrants and Newcomers

State income tax is often overlooked by people moving to the United States 🇺🇸, but it can make a big difference in your finances. Minnesota’s rates are higher than some other states, and the rules can be confusing if you are new to the system.

Filing Requirements: Even if you are not a citizen, you may need to file a state tax return if you live or work in Minnesota.
Residency Rules: Minnesota has its own rules for who is considered a resident for tax purposes. This can be different from federal rules. For example, you may be considered a resident if you spend more than half the year in Minnesota, even if you are not a permanent resident.
Tax Treaties: Some countries have tax treaties with the United States 🇺🇸 that can affect how much tax you owe. Check with the Minnesota Department of Revenue for details.

Practical Steps for New Residents and Immigrants

Get a Social Security Number or ITIN: You need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to file taxes.
Keep Good Records: Save all pay stubs, tax forms (like W-2s or 1099s), and any documents showing your income.
Understand Deductions and Credits: Minnesota offers some tax credits and deductions that can lower your tax bill. For example, there are credits for education expenses and property taxes.
File On Time: The deadline for filing Minnesota state taxes is usually April 15, the same as the federal deadline. If you need more time, you can request an extension, but you still need to pay any tax owed by the deadline.
Ask for Help if Needed: Many community organizations and tax clinics offer free help to immigrants and new residents. The Minnesota Department of Revenue also has resources in multiple languages.

What Happens Next?

The Minnesota Legislature is still debating HF812 and other tax proposals. If the bill passes, the changes will take effect for the 2025 tax year. If it does not pass, the current system will stay in place.

If you are planning to move to Minnesota in 2025, keep an eye on the news and check the official Minnesota Department of Revenue website for updates.
If you are already in Minnesota, talk to your employer or a tax professional about how the changes might affect your paycheck and tax return.

Expert Opinions and Analysis

As reported by VisaVerge.com, the debate over Minnesota’s state income tax system is part of a larger discussion about how to balance the state’s budget while keeping Minnesota competitive. Some experts believe that lowering taxes could help attract more workers and businesses, especially as other states lower their own taxes. Others warn that big tax cuts could lead to budget problems and cuts to important services.

The Minnesota Revenue Department’s estimate of a $3.79 billion loss in 2025 shows just how big the impact could be. Lawmakers will need to decide whether the benefits of lower taxes are worth the possible risks.

Key Takeaways and Next Steps

Minnesota’s state income tax rates for 2025 range from 5.35% to 9.85%, with four brackets for different income levels.
A new proposal (HF812) could remove the lowest tax bracket, making the first $32,700 (single) or $47,620 (married) of income tax-free.
These changes could affect anyone living or working in Minnesota, including immigrants, students, and new arrivals.
Stay informed by checking the Minnesota Department of Revenue for updates.
File your state tax return on time and keep good records to avoid problems with your immigration status or future applications.
Ask for help if you need it—there are many resources available for immigrants and new residents.

By keeping up with these changes and understanding how Minnesota’s state income tax system works, you can make better decisions for your family and your future. Whether you are already living in Minnesota or planning to move there, knowing the rules will help you avoid surprises and make the most of your new home.

Learn Today

State Income Tax → A tax levied by Minnesota on personal income earned within the state boundaries.
Tax Bracket → A range of income levels taxed at a specific rate under Minnesota’s progressive system.
House File 812 (HF812) → Proposed Minnesota legislation to remove the lowest income tax bracket for 2025.
Tax Withholding → The portion of income employers deduct from paychecks to prepay state income taxes.
Social Security Number (SSN) → A unique number required to file taxes and report income in the United States.

This Article in a Nutshell

Minnesota’s 2025 state income tax system may change significantly with House File 812 removing the lowest bracket. These updates impact immigrants, workers, and residents. Understanding rates, brackets, and filing rules helps avoid surprises and plan finances effectively for the state’s evolving tax landscape.
— By VisaVerge.com