Complete Minnesota retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #46 of 51.
4 bracket(s)
Treated as ordinary income
#19 (Moderate)
State 6.875% + local avg 7.5%
Minnesota has high income tax rates that apply to retirement income. Social Security is taxed for higher incomes. While it exempts some Social Security, the high rates make it less retiree-friendly.
Not taxed
Taxable
None
| Rate | From | To |
|---|---|---|
| 5.35% | $0 | $32,140 |
| 6.8% | $32,140 | $105,200 |
| 7.85% | $105,200 | $180,020 |
| 9.85% | $180,020 | No limit |
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