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Minnesota
By the Numbers

Minnesota Below is a snapshot of key features of Minnesota's tax system. (Scroll Down)
State & Local Revenue (FY10)
  • General Revenue, Own-Source (GROS): $35.5 billion
  • General Revenue as a Share of Income: 16.1%
  • Tax Revenue: $24.4 billion
  • Tax Revenue as Share of income: 11.0%
  • Personal Income Tax (Share of Tax Revenue): 26.5% (10 out of 51)
  • Corporate Income Tax (Share of Tax Revenue): 3.0 % ( 22 out of 51)
  • Sales & Excise Tax (Share of Tax Revenue): 33.5 % ( 27 out of 51)
  • Property Tax (Share of Tax Revenue): 30.7 % ( 31 out of 51)
  • Other Taxes (Share of Tax Revenue): 4.1 % (32 out of 51)
Personal Income Tax Features (2012)
  • Range of Tax Rates: 5.35% - 7.85%
  • Standard Deduction: $5,950 ($11,900 for Married Couples)
  • Personal Exemption: $3,800
  • Dependent Exemption: $3,800
  • Earned Income Tax Credit (EITC): Varies Based on Income, Average 33% Refundable
Corporate Income Tax Features (2012)
  • Range of Tax Rates: 9.80%
  • Income Level at Which Top Rate Applies: All
  • Combined Reporting: Yes
  • Apportionment Factor (Payroll): 2%
  • Apportionment Factor (Property): 2%
  • Apportionment Factor (Sales): 96%
  • Apportionment Note: SSF phasing-in; will be fully implemented in 2014
Sales Tax Features (2012)
  • State Sales Tax Rate: 6.875%
  • Average Local Sales Tax Rate: 0.325%
  • Average Combined State & Local Sales Tax Rate: 7.20%
  • State Sales Tax Treatment of Groceries: Exempt
  • Local Sales Tax Treatment of Groceries: Exempt
  • Number of Services Taxed: 66 out of 168 surveyed (2007)
  • Streamlined Sales Tax Membership: Full
  • State sales tax rate scheduled to decline to 6.5% in 2034
  • State sales tax rate scheduled to decline to 6.5% in 2034
  • State sales tax rate scheduled to decline to 6.5% in 2034
Property Tax Features (2012)
  • Provides a circuit breaker for homeowners and renters of all ages
  • Provides a means-tested homestead credit.
  • Utilizes a graduated assessment ratio.
Other Tax & Revenue Features (2012)
  • Gasoline Tax Rate (per gallon): $0.286
  • Diesel Tax Rate (per gallon): $0.286
  • Cigarette Tax Rate (per pack): $3.192
  • Estate or Inheritance Tax: Yes
  • Net Lottery Sales Per Capita: $82 (2010)
Tax Policy Oversight
  • Tax Expenditure Report: Yes
  • Tax Incidence Analysis Capability: Multiple taxes

Last Updated October 4, 2012

Sources & Glossary