Minnesota Taxes and Tax Plans

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 2015

Governor Dayton strives to increase opportunity in his FY 2016-17 budget proposal

After nearly a decade of frequent deficits and cuts to services, Minnesota’s outlook is improved and now faces a projected $1.9 billion surplus. Governor Mark Dayton uses the opportunity in his budget for the upcoming biennium to make investments in high quality schools, affordable college tuition. and a safe and modern transportation system to build a more prosperous state.

June 2013

Budget choices in the 2013 Legislative Session take Minnesota in a better direction

The FY 2014-15 budget approved in the 2013 Legislative Session made significant progress toward making Minnesota's tax system fairer, investing in the state's future, and putting the state on firmer financial footing. This issue brief examines the details of the budget in health and human services, E-12 education, higher education, economic development and housing, and taxes.

April 2013

'Fourth tier' would have little impact on small businesses

Governor Dayton's proposal to create a new income tax bracket on the highest-income Minnesotans creates the opportunity to raise adequate revenues and resolve the gap between what the state needs to fund basic services and revenues it can raise. The plan would not have a substantial impact on small businesses.

April 2013

Tax increases don't prompt high-income households to move out of state

Increased income taxes do not cause high-income households to leave a state, according to the experience of several states. Research shows that jobs, housing costs, climate, and family are the reasons high-income households move - not increased taxes.

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Taxes and Tax Plans Blog Posts

May 28, 2024

2024 Legislature passes improvements in Child Tax Credit, tax-filing process

The Minnesota Legislature passed some investments in Minnesota families’ economic well-being and improving their tax-filing experience in this year’s final tax legislation, including essential provisions for successful implementation of advance payments of the Child Tax Credit. Here’s a look at how our priorities for the tax bill fared this session.

May 13, 2024

Child Tax Credit and tax-filing improvements in play in final 2024 tax negotiations

Minnesota policymakers could be less than two weeks away from enacting into law innovations and improvements in the Child Tax Credit and Minnesotans’ tax-filing experience. Here's a closer look at the issues we are watching and how they are treated in Walz’s tax plan, the House tax bill, and Senate tax bill. Tax negotiators will need to reach agreement and pass final tax legislation before the legislative session ends on May 20.

May 03, 2024

Direct File could save Minnesotans time and money when filing income taxes

Paying taxes is how we come together to fund public services that Minnesotans value and count on, but with our current system, the majority of folks pay to meet their tax-filing responsibilities. Direct File is a free online tool to file and prepare income taxes, and Minnesota can build on positive federal progress on making this option available. Read our blog to learn about how a Direct File system would benefit Minnesotans by saving time, money, and improving access to tax credits.

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.

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