Minnesota income tax goes up to 9.85% at the top bracket. Calculate your combined federal + state effective tax rate for 2026. Formula shown, sources cited — no account required.
Minnesota runs a four-bracket graduated income tax system with rates of 5.35%, 6.80%, 7.85%, and 9.85%, placing it among the highest-taxed states in the country at the top end. The 9.85% bracket applies to income above approximately $183,000 for single filers and $305,000 for married couples. Most median earners at $87,117 fall into the 7.85% bracket. On top of state taxes, Minnesota residents also pay federal taxes — median earners typically land in the 22% federal bracket, pushing the combined marginal rate close to 30%. Minnesota does not conform to all federal deductions, so some itemized deductions that reduce federal taxable income do not carry over to the state return. The state does allow a standard deduction and personal exemption that reduce the taxable base. One positive: Minnesota does not tax Social Security for lower- and middle-income retirees. Use the tax bracket calculator to build a complete picture of your Minnesota state and federal tax liability by income level.
Minnesota's High State Taxes: Federal + State Brackets Explained (2026)
Minnesota has a state income tax with a top marginal rate of 9.85%. On top of federal rates (10%–37%), residents can face a combined marginal rate exceeding 40% at higher income levels. However, your effective rate is always lower than the marginal rate because only income above each threshold is taxed at that bracket's rate.
The median household in Minnesota earns $87,117/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 18–21%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in Minnesota has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.