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Minnesota Taxes and Tax Plans

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State tax policy that prioritizes everyday Minnesotans can expand economic opportunity, build thriving communities, and strengthen our economic future. However, tax policy can also widen income, wealth, and racial inequality if it primarily benefits those who are already doing well in today's economy.

We analyze individual tax proposals and full tax plans from the governor and legislative bodies, as well as the tax system overall, emphasizing the impact on everyday Minnesotans, tax fairness, and the ability of the tax system to raise the revenues needed to sustainably fund public investments that keep us moving forward as a state.

Research

June 2013

Budget choices in the 2013 Legislative Session take Minnesota in a better direction

The FY 2014-15 budget approved in the 2013 Legislative Session made significant progress toward making Minnesota's tax system fairer, investing in the state's future, and putting the state on firmer financial footing. This issue brief examines the details of the budget in health and human services, E-12 education, higher education, economic development and housing, and taxes. 

April 2013

'Fourth tier' would have little impact on small businesses

Governor Dayton's proposal to create a new income tax bracket on the highest-income Minnesotans creates the opportunity to raise adequate revenues and resolve the gap between what the state needs to fund basic services and revenues it can raise. The plan would not have a substantial impact on small businesses.

April 2013

Tax increases don't prompt high-income households to move out of state

Increased income taxes do not cause high-income households to leave a state, according to the experience of several states. Research shows that jobs, housing costs, climate, and family are the reasons high-income households move - not increased taxes.

April 2013

Governor Dayton's FY 2014-15 budget focuses on tax reform, financial stability, and investments

Governor Dayton's budget proposal seeks to reach important goals, including sharing the responsibility for funding public services more equitably, putting the state on firm financial footing. and investing in the building blocks of shared economic success.

Taxes and Tax Plans Blog Posts

April 03, 2024

Joint state budget targets set for 2024 Legislative Session

Governor Tim Walz reached an agreement with House Speaker Melissa Hortman and Senate Majority Leader Erin Murphy on budget targets on March 22. The agreement outlines targets of $478 million in net general budget changes, including increased spending or reduced revenues, for FY 2024-25 and $63 million for FY 2026-27. The joint budget targets also set the parameters for final budget negotiations between the House, Senate, and the governor.

May 12, 2023

2023 tax conference committee weighs similarities, differences in House, Senate, Walz tax plans

This year, policymakers are considering transformational changes and long-overdue investments to make Minnesota a state...

April 17, 2023

Minnesota should continue targeted approach to Social Security income tax exemption

In the debate about whether Minnesota should change its tax treatment of Social Security benefits, we’ve sought to draw...

March 29, 2023

House Property Tax Division bill includes transformational changes to the Renters’ Credit

One of the highlights of last year’s tax discussion is moving forward again this session: a game-changing proposal to...