AI Generated Summary
The bill proposed in Minnesota seeks to amend the current individual income tax rates, effectively lowering the percentages that different income brackets are required to pay. Here is a breakdown of what the bill includes:
Married Couples and Surviving Spouses: The bill proposes new, reduced tax rates applied to various income ranges for married individuals filing jointly or surviving spouses.
- The first $38,770 to $47,620 of income will be taxed at 5.225% (down from 5.35%).
- Income between $154,020 and $189,180 will be taxed at 6.675% (down from 6.8%).
- Income between $269,010 and $330,410 will be taxed at 7.725% (down from 7.85%).
- Income above $269,010 or $330,410 will face a tax rate of 9.725% (down from 9.85%).
Unmarried Individuals: The bill similarly lowers tax rates for unmarried individuals.
- The first $26,520 to $47,620 of income will be taxed at 5.225%.
- Income between $87,110 and $189,180 will be taxed at 6.675%.
- Income between $161,720 and $330,410 will be taxed at 7.725%.
- Income over $161,720 or $330,410 will be taxed at 9.725%.
Heads of Households: Rates for heads of households also see reductions.
- The first $32,650 to $47,620 is taxed at 5.225%.
- Income between $131,190 and $189,180 is taxed at 6.675%.
- Income between $214,980 and $330,410 is taxed at 7.725%.
- Income over $214,980 or $330,410 is taxed at 9.725%.
Special Provisions:
- Tax computation changes are specified for individuals who did not reside in Minnesota for the entire year.
- Provisions also include details on how income and deductions from other states are considered in tax computations.
This bill if passed will lower the income tax burden for many residents across various income levels in Minnesota.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies income tax rates for individuals, estates, and trusts under section 290.06.",
"modified": [
"Changes tax rate percentages for different income brackets."
]
},
"citation": "290.06"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section relates to income tax calculations involving certain additions.",
"modified": [
"Mentioned in connection with income tax calculations for nonresidents."
]
},
"citation": "290.0131"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section relates to income tax calculations involving certain subtractions.",
"modified": [
"Mentioned in connection with income tax calculations for nonresidents."
]
},
"citation": "290.0132"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section includes specifics about income tax adjustments.",
"modified": [
"Referenced in nonresident tax calculations related to adjustments."
]
},
"citation": "290.0137"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section involves allocation and assignability provisions for Minnesota income.",
"modified": [
"Referenced related to allocation and assignability in tax calculations."
]
},
"citation": "290.081"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Includes election provisions for qualifying entities to pay tax.",
"modified": [
"Applies to income tax computations involving qualifying entity owners."
]
},
"citation": "289A.08"
}
]