Minnesota tax burden — broken down.
Minnesota’s combined tax burden (income + property + sales) lands at 17.84% on our composite — ranking #3 of 51 jurisdictions. The top marginal individual income tax rate is 9.85%.
Minnesota burden, broken into 3 components
| Component | Minnesota rate | National median |
|---|---|---|
| Top marginal income | 9.85% | ~5.30% |
| Effective property | 1.12% | ~1.07% |
| State sales tax | 6.88% | ~5.50% |
| Combined composite | 17.84% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Minnesota
Minnesota taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are taxed by Minnesota. Federal taxation of these income sources is unchanged regardless of state.
How Minnesota compares
Of all 51 US jurisdictions ranked by combined burden composite, Minnesota sits at #3. That puts Minnesota in the top 10 highest-burden states — relocation candidates often look at the bottom-10 list (WY, SD, TN, AK, NH). For the live cross-state heat map, see the interactive tax burden map.
Minnesota metros — local tax overlay
State rates are uniform across Minnesota— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Minneapolisproperty 1.10% · pop 3.7Mmedian $80,600 →
- Duluthproperty 1.30% · pop 0.3Mmedian $52,800 →
- Rochesterproperty 1.20% · pop 0.2Mmedian $78,500 →
- St. Cloudproperty 1.20% · pop 0.2Mmedian $55,800 →
More Minnesota metros coming as we expand city coverage.
Minnesota tax — common questions
What is the Minnesota top marginal income tax rate in 2025?
Minnesota's top marginal individual income tax rate is 9.85% on the highest bracket.
What is the Minnesota effective property tax rate?
Minnesota's statewide effective property tax rate is 1.12% of home value (annual). On a $400,000 home that's roughly $4,480/yr. Local variation can be ±0.5pp.
Does Minnesota tax retirement income or Social Security?
Minnesota taxes most retirement income, and taxes Social Security benefits.
Are there any Minnesota-specific tax quirks I should know about?
Minnesota fully taxes Social Security for higher-income retirees (one of 9 states that tax SS); estate tax with $3M exemption (one of the lowest in the US).
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.