State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families. Go to the Kiplinger Tax Map Minnesota Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Mixed Tax Picture Minnesota's income tax rates start at 5.35%, which isn't necessarily a good sign for middle-class taxpayers. Nevertheless, the income tax burden in the North Star state for middle-income residents is decidedly average. The same can be said about the state's sales tax burden. When you add in property taxes that are only slightly higher than average, you get a very ordinary overall state and local tax burden. Income Tax Range Low: 5.35% (on less than $27,230 of taxable income for single filers and on less than $39,810 for joint filers)High: 9.85% (on more than $166,040 of taxable income for single filers and on more than $276,200 for joint filers)For 2022, the 5.35% rate will apply to the first $28,080 of taxable income for single filers and the first $41,050 of taxable income for joint filers. The 9.85% rate will apply to taxable income over $171,220 for singles and over $284,810 for married couples filing jointly. Sales Tax 6.875% state levy. Localities can add as much as 2%, with an average combined rate of 7.49%, according to the Tax Foundation.Groceries: ExemptClothing: ExemptMotor Vehicles: Exempt from ordinary sales tax, but taxable under special 6.5% excise tax ($10 for certain older vehicles; $150 for certain collector vehicles)Prescription Drugs: Exempt Real Property Taxes In Minnesota, the median property tax rate is $1,106 per $100,000 of assessed home value. Motor Fuel Taxes Gasoline: 30.6¢ per gallon. Diesel: 30.6¢ per gallon. Sin Taxes Cigarettes and little cigars: $3.703 per pack (excise tax plus special sales tax)Premium cigars: the lesser of 95% of the wholesale price or $0.50 per cigarMoist snuff: the greater of 95% of the wholesale price or $3.04 multiplied by the ounces and divided by 1.2Other tobacco products: 95% of the wholesale priceVapor products: 95% of wholesale priceBeer: $0.15 per gallonWine: $0.30 per gallon ($1.82 per gallon for sparkling)Liquor: $5.03 per gallonA 2.5% gross-receipts tax is also due on all alcohol purchases, in addition to sales tax. Annual Car Taxes and Fees An annual vehicle registration tax based on the car's sticker price (MSRP) and age is imposed. Estate and Inheritance Taxes Minnesota's estate tax exemption is $3 million, but the state looks back to include any taxable gifts made within three years prior to death as part of your estate. Tax rates range from 13% to 16%.