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

February 2023

Tax cuts from unlimited Social Security exemption skewed to higher-income Minnesotans

This issue brief looks at why higher-income Minnesotans are more likely to benefit from fully exempting taxes on Social Security, who benefits from existing Social Security exemptions, and how the cost of these tax cuts limit critical investments in public services.

January 2023

Income tax repeal would damage Minnesota's quality of life, increase inequality

All Minnesotans deserve to lead healthy and secure lives. But the path to a stronger, more equitable future for our...

April 2022

Costly first bracket income tax cut leaves out everyday Minnesotans

A proposed income tax rate cut is tilted toward those with the most resources and prevent making strong investments in public services that would create a brighter future for all Minnesotans. This issue brief looks at how and why higher-income Minnesotans are more likely to benefit from a first bracket rate cut and get larger tax cuts than those of modest means.

August 2021

Minnesota’s new FY 2022-23 budget takes important steps toward the recovery, falls short of transformational change

Policymakers had a critical task this session: to support and care for those struggling the most and start to build a more equitable recovery. Some important investments were made in the FY 2022-23 budget, but it ultimately fell short of what’s fully needed in this moment and for the long term.

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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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