Minnesota Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Minnesota in 2026, with political context.
No
No Income Tax
9.85% (top)
Income Tax Rate
#7
Tax Burden Rank (1=highest)
#44
Property Tax Rank (1=highest)
Tax Policy Overview
Minnesota has among the highest income and corporate tax rates in the nation. Democrats extended top rates in 2023. The state also has a tax on Social Security income that is being phased out. Minnesota has a strong tradition of high taxes funding robust public services.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 9.85% (top) |
| No Income Tax | No |
| Sales Tax | 6.875% |
| No Sales Tax | No |
| Corporate Tax | 9.8% |
| Property Tax Rank | #44 nationally (1=highest) |
| Overall Tax Burden Rank | #7 nationally (1=highest) |
Political Context
Minnesota Democrats use taxes on high earners and corporations to fund generous social programs. Republicans argue this drives wealthy residents and businesses to other states. Minnesota has consistently high bond ratings suggesting fiscal sustainability. The Social Security income tax phase-out has bipartisan support.