SF421

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.