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SF421 (Legislative Session 94 (2025-2026))

All income tax reduction by 3.25 percentage points provision

Related bill: HF301

AI Generated Summary

This bill, if enacted, will reduce all personal income tax rates in Minnesota by 3.25 percentage points. The adjusted tax rates will be applied to different income brackets for various groups: married couples filing jointly, couples filing separately, unmarried individuals, and heads of households. The bill outlines specific income ranges for each group, adjusting the tax rate corresponding to those ranges. There is also a provision indicating that Minnesota residents who do not live in the state for the entire year will have their income tax computed in a certain way, taking into account their Minnesota-sourced income relative to their total income. This change also impacts non-residents who have business entities in Minnesota. Overall, the bill aims to lower the amount of state income tax that individuals and certain estates and trusts pay.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A more detailed schedule for nonresidents' fractional tax computation."
      ],
      "removed": [
        "Certain redundant income brackets."
      ],
      "summary": "This bill modifies income tax rates for various filing categories under section 290.06.",
      "modified": [
        "Individual and joint income tax rate percentages decreased by 3.25 points."
      ]
    },
    "citation": "290.06"
  },
  {
    "analysis": {
      "added": [
        "Clarifies the denominator for federal adjusted gross income calculations."
      ],
      "removed": [],
      "summary": "Adjustments related to income allocation for nonresidents.",
      "modified": [
        "Expanded definitions clarifying adjusted gross income requirements."
      ]
    },
    "citation": "290.081"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the federal definition used for state tax purposes.",
      "modified": [
        "Integrates federal adjustments into state calculations."
      ]
    },
    "citation": "62 of the Internal Revenue Code"
  }
]

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