The Kiplinger Tax Map: Guide to State Income Taxes, State Sales Taxes, Gas Taxes, Sin Taxes
Tool | Updated October 2019

State-by-State Guide to Taxes

Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S.

Minnesota

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The Bottom Line
Flag of Minnesota

Not Tax Friendly

The North Star State hits hard with income tax. It added a new top income tax rate of 9.85% in 2013. But what makes Minnesota really stand out is that its lowest income tax rate is 5.35%.

Property taxes are on the high side, too.

Sales Tax

6.875% state levy. Localities can add as much as 2%, with an average combined rate of 7.43%, according to the Tax Foundation. Most clothing and footwear are exempt.

Income Tax Range

Low: 5.35% (on less than $25,890 of taxable income for single filers and on less than $37,850 for joint filers)

High: 9.85% (on more than $160,020 of taxable income for single filers and on more than $266,700 for joint filers)

Effective tax rate: 5.35% for single filers, 6.53% for joint filers.

Motor Fuel Taxes

Gasoline: $0.2860 per gallon.
Diesel: $0.2860 per gallon.

Property Taxes

In Minnesota, residents pay an average of $1,224 in taxes per $100,000 of assessed home value.

Vehicle Taxes

6.5% sales tax is due at purchase (slightly below general sales tax, and no local tax is computed).

Sin Taxes

Cigarettes and little cigars: $3.04 per pack
Premium cigars: the lesser of 95% of the wholesale price or $0.50 per cigar
Moist snuff: 95% of the wholesale price; minimum of $3.04 per package.
Other tobacco products: 95% of the wholesale price
Vapor products: 95% of the wholesale price

Beer: $0.49 per gallon
Wine: $1.20 per gallon
Liquor: $8.96 per gallon
A 2.5% gross-receipts tax is also due except in the case of beer with an alcohol content of 3.2% (to which only sales tax applies).

Taxes On Wireless Service

10.54%

Inheritance and Estate Taxes

The North Star State’s estate tax exemption for 2019 is $2.7 million. It will rise to $3 million in 2020; tax rates are from 13% - 16%. But Minnesota looks back to include as part of your estate any taxable gifts made within three years prior to death.

Oddball Tax

The champagne lifestyle will cost you in Minnesota. Bubbly is taxed six times as much as most still wines.

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