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Minnesota Taxes and Tax Plans

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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

March 2013

The facts still speak: Time to reform Minnesota's tax system

Tax fairness has declined in Minnesota since 1990, according to the 2013 Tax Incidence Study. High-income Minnesotans continue to pay a smaller percentage of their incomes in total state and local taxes than low- and middle-income Minnesotans. Minnesota policymakers should reform the state's tax system to make it more fair and raise enough revenues to meet Minnesota's needs.

January 2013

The facts speak: It's time to reform Minnesota's tax system

Minnesota's outdated tax system is not meeting the state's needs. The difference between the share of income that the highest-income Minnesotans pay in taxes and the share that the average Minnesotan pays has grown, and Minnesota is not raising adequate revenues to avoid the cycle of budget deficits and gimmicks.

October 2012

Strong Minnesota economy requires sound investments

Minnesota faces significant gaps between public needs and the resources it takes to meet them. Policymakers need to move beyond gimmicks and short-term fixes, and invest in Minnesota's long-term prosperity. The 2013 Legislature should use a balanced approach that includes revenues when setting the next two-year budget in order to put Minnesota back on the right path.

June 2012

2012 Legislative Session: Modest budget changes, little progress on sustainably funding our future

The 2012 Legislature adjourned after making small changes to the budget, primarily in K-12 education, health and human services, and taxes. Policymakers did not take up proposed constitutional budget amendments that threatened the state's future. The 2013 session presents an opportunity for the Legislature to address the challenge of finding sustainable ways to fund the state's priorities. 

Taxes and Tax Plans Blog Posts

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...

March 23, 2023

Early agreement on state budget targets outline use of the surplus

On Tuesday, the Minnesota House and Senate leadership and Governor Tim Walz released joint budget targets that lay out ...