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% (only sales tax applies).

Taxes On Wireless Service

10.54%

Inheritance and Estate Taxes

Minnesota’s estate-tax exemption of $2.4 million in 2018 will rise to $2.7 million in 2019 and $3 million in 2020. But taxable gifts made within three years prior to death are considered part of the estate. Rates range between 5.6% - 16%.

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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