Wondering what you might be missing out on with your MN tax refund? Here we hope to share some info that will save you some money this year!
Income Tax
Minnesota income tax ranges from 5.35-9.85%, some of the highest in the country. Below is a breakdown for people filing as “single” for the 2016 tax year:
| Minnesota Taxable Income | Rate |
| $0 – $25,180 | 5.35% |
| $25,180 – $82,740 | 7.05% |
| $82,740 – $155,650 | 7.85% |
| $155,650+ | 9.85% |
Property Tax
In Minnesota, these are often dealt with by the counties, so rates vary by where you live. They range from 0.5% to 1.3%. Annual average payments are over $2,000.
Estate Tax
Any taxable estates worth over $1.4 million must file an estate tax return. Refer to this form for more detail.
Tax Deductions
While taxes in Minnesota are some of the highest in the US, there are many deductions that can be utilized. Besides deducting state and local taxes, all federal itemized deductions can also be claimed on your state income tax return.
Up to:
- $6,300 for people filing as “single” and for each person if “married filing separately”
- $12,600 total if married and filing “jointly”
- There is also an allowance of $4,000 of personal exemptions for each person and their dependents.
These itemized deductions are only allowed for:
- “Married filing separately” each making less than $90,575 federal adjusted gross income (AGI)
- All other tax filers making less than $181,150 AGI
Tax Credits
The most significant credits in MN include:
- Working Family Credit: if you are eligible for this federal credit, you will be eligible for this state one also. You are not eligible if you’re filing with an ITIN.
- K-12 Education Credit: if you have a child in kindergarten through 12th grade at a qualified school, and paid qualified education expenses, you might be eligible. Click here for more details.
- Dependent Care Credit: if you qualify for the federal credit, check the list of state requirements to see if you qualify for this refund in MN.
Not Part of Your Tax Return (but good to know)
Minnesota Sales Tax
MN sales tax ranges from 6.875-7.875%
Gas Tax
$0.286 per gallon of gasoline and diesel
For more detail, download the tax form instruction manual here. Download our FREE Tax Organizer , and if you need help with your Minnesota tax refund, or would like an accountant to check over your forms, please contact us and we’ll be happy to assist!
