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Minnesota Taxes and Tax Plans

taxes

State tax policy that prioritizes everyday Minnesotans can expand economic opportunity, build thriving communities, and strengthen our economic future. However, tax policy can also widen income, wealth, and racial inequality if it primarily benefits those who are already doing well in today's economy.

We analyze individual tax proposals and full tax plans from the governor and legislative bodies, as well as the tax system overall, emphasizing the impact on everyday Minnesotans, tax fairness, and the ability of the tax system to raise the revenues needed to sustainably fund public investments that keep us moving forward as a state.

Research

April 2007

Tax fairness declining in Minnesota: Explaining the 2007 Tax Incidence Study

Average taxes in Minnesota are still lower than they were in the 1990s, according to the 2007 Tax Incidence Study, even though they have been on the rise since 2002. The state’s tax system has also followed a trend towards greater regressivity since 1996. A greater reliance on local taxes (especially the property tax) and rising income inequality have both contributed to the erosion of tax fairness.

November 2006

2006 budget decisions leave much on the table for 2007

May 2006

Sources of revenue considered in the 2006 Legislative Session

April 2006

Minnesota's taxes: Who pays and how much

Taxes and Tax Plans Blog Posts

April 03, 2024

Joint state budget targets set for 2024 Legislative Session

Governor Tim Walz reached an agreement with House Speaker Melissa Hortman and Senate Majority Leader Erin Murphy on budget targets on March 22. The agreement outlines targets of $478 million in net general budget changes, including increased spending or reduced revenues, for FY 2024-25 and $63 million for FY 2026-27. The joint budget targets also set the parameters for final budget negotiations between the House, Senate, and the governor.

May 12, 2023

2023 tax conference committee weighs similarities, differences in House, Senate, Walz tax plans

This year, policymakers are considering transformational changes and long-overdue investments to make Minnesota a state...

April 17, 2023

Minnesota should continue targeted approach to Social Security income tax exemption

In the debate about whether Minnesota should change its tax treatment of Social Security benefits, we’ve sought to draw...

March 29, 2023

House Property Tax Division bill includes transformational changes to the Renters’ Credit

One of the highlights of last year’s tax discussion is moving forward again this session: a game-changing proposal to...