Minnesota Taxes

Minnesota taxes income at four graduated rates for tax year 2026: 5.35%, 6.80%, 7.85% and 9.85%. The 9.85% top rate starts at $203,151 of Minnesota taxable income for a single filer, $337,931 for married filing jointly, $270,061 for head of household and $168,966 for married filing separately; the 5.35% rate covers the first $33,310 (single) or $48,700 (joint). The Department of Revenue re-indexes the brackets for inflation every year.

Minnesota's state excise tax on gasoline is $0.326 per gallon (32.6 cents) for January 1 – December 31, 2026, and is scheduled to rise to $0.328 per gallon beginning January 1, 2027 (Minnesota adjusts the rate each January 1). A petroleum cleanup fee of $0.02 per gallon is collected only during the periods the Department of Revenue lists in its Cleanup Fee Effective Date Table, and an inspection fee of $0.001 per gallon applies. No gas-tax suspension is in effect in Minnesota. The 18.4-cent federal gasoline tax is extra.

Minnesota has no sales-tax holiday, and none is needed for back-to-school clothing: clothing suitable for general use is exempt from sales tax all year (Minn. Stat. 297A.67, subd. 8). The exemption does not cover clothing accessories, sports or recreational equipment, protective equipment, fur clothing, or sewing supplies and items like belt buckles, costume masks and patches sold separately; those are taxed.

Minnesota property tax is mostly local: each county, city or town, and school district sets a levy, and the county assessor sets each property's estimated market value and classification by January 2 each year; the class rate set in state law decides your share of the levy, so bills vary widely by location. There is also a STATE general property tax on commercial-industrial property and on seasonal residential recreational property such as cabins (Minn. Stat. 275.025), paid into the state general fund. You can appeal your value or classification, not the tax amount.