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HF812 (Legislative Session 94 (2025-2026))

Individual income tax rates modified, and zero bracket provided.

Related bill: SF1195

AI Generated Summary

This bill, H.F. No., authored by Wiener, focuses on modifying individual income tax rates in Minnesota. It amends the current tax schedules for different groups of taxpayers and implements changes to how income tax is computed for residents and non-residents alike. Here are the key changes outlined in the bill:

  1. Tax Rate Adjustments for Married Individuals:

    • Married couples filing jointly, as well as surviving spouses, will have new tax brackets and rates:
      • Income up to $38,770 is taxed at 5.35%.
      • Income over $38,770 up to $154,020 is taxed at 6.8%.
      • Income over $154,020 up to $269,010 is taxed at 7.85%.
      • Income over $269,010 is taxed at 9.85%.

  2. Tax Rate Adjustments for Unmarried Individuals:

    • Single filers will have adjusted brackets:
      • Income up to $26,520 is taxed at 5.35%.
      • Income over $26,520 up to $87,110 is taxed at 6.8%.
      • Income over $87,110 up to $161,720 is taxed at 7.85%.
      • Income over $161,720 is taxed at 9.85%.

  3. Adjustments for Heads of Households:

    • New rates for individuals qualifying as head of household:
      • Income up to $32,650 is taxed at 5.35%.
      • Income over $32,650 up to $131,190 is taxed at 6.8%.
      • Income over $131,190 up to $214,980 is taxed at 7.85%.
      • Income over $214,980 is taxed at 9.85%.

  4. Special Provisions for Non-residents:

    • Non-residents' tax liability is calculated based on their Minnesota source income relative to their total income. Adjustments and subtractions specific to Minnesota law apply.

  5. Provisions for Part-year Residents and Business Entities:

    • Details on how part-year residents and owners of certain entities that elect to be taxed differently should compute their Minnesota income taxes.

The bill also lays out specific numeric thresholds and conditions under which taxpayers must compute their taxes and provides procedures for how these taxes should be calculated. This includes special rules for non-residents and individuals with complex tax situations, ensuring that everyone’s tax responsibility is computed fairly based on their connection to Minnesota and their total income.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 05, 2025HouseFloorActionAuthors added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Provided specific tax brackets for different filing statuses."
      ],
      "removed": [
        "No specific items were removed."
      ],
      "summary": "This bill modifies individual income tax rates under section 290.06.",
      "modified": [
        "Adjusts the taxable income brackets and tax rates for individuals, estates, and trusts."
      ]
    },
    "citation": "290.06"
  }
]

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