Income Tax
Minnesota has a progressive state income tax with a top rate of 9.85%, among the highest in the nation.
Individual income tax collections
1990–2025Census State Government Tax Collections (FRED MNINCTAX).
| Indicator | Minnesota | U.S. |
|---|---|---|
| Top income tax rate (%) | 9.85 | 5 |
- •Minnesota's top income tax rate of 9.85% is among the five highest in the country.
Property Tax
Minnesota's effective property tax rate is about 1.05%, close to the national average.
State-level property tax collections
1990–2025Census State Government Tax Collections; excludes local property taxes (FRED MNPROPTAX).
| Indicator | Minnesota | U.S. |
|---|---|---|
| Effective property tax rate (%) | 1.05 | 0.9 |
Sales Tax
Minnesota's state sales tax rate is 6.875%, with local add-ons pushing the average combined rate to about 7.5%.
General sales tax collections
1990–2025Census State Government Tax Collections (FRED MNSALESTAX).
| Indicator | Minnesota | U.S. |
|---|---|---|
| Avg. combined sales tax (%) | 7.5 | 7.1 |
Tax Burden
Minnesota's overall state and local tax burden is about 11.3% of income, above the national average, funding strong public services and education.
State tax collections per resident
1990–2025Census tax collections (MNTOTLTAX) divided by Census resident population (MNPOP).
| Indicator | Minnesota | U.S. |
|---|---|---|
| Tax burden (%) | 11.3 | 9.9 |
Tax Revenue
Minnesota's total state tax revenue was about $28 billion in fiscal year 2023, supporting a large state government relative to population.
State tax collections
1990–2025Census Annual Survey of State Government Tax Collections, fiscal years (FRED MNTOTLTAX).
| Indicator | Minnesota | U.S. |
|---|---|---|
| Tax revenue (USD B) | 28 | 1200 |