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 2016

Dayton's FY 2016-17 supplemental budget proposal works to expand opportunity and close racial gaps

With a $900 million surplus, Governor Mark Dayton makes strategic investments that are focused on expanding opportunity for more Minnesotans, regardless of their race or where they live. The tax portion of Dayton’s supplemental budget prioritizes sustainable tax choices that move Minnesota toward a tax system that is more equitable across income levels. It is especially focused on supporting working families, particularly those with children.

March 2016

Proposed 'small business' tax cuts miss the mark

The 2016 Legislative Session offers an opportunity for making investments in our communities that build the quality workforce and high standard of living that have been critical to Minnesota's economic success. Large tax cuts that some have proposed would prevent this investment. This fact sheet takes a closer look at some tax cuts proposed to support small businesses and find they don't measure up to the hype.

September 2015

Minnesota tax system now fairer, but there's more to do

Minnesota is moving toward a tax system that is fairer and raises adequate revenues, thanks to reforms passed in 2013 and 2014. Information from the state’s 2015 Tax Incidence Study creates a “before and after” picture of the difference those reforms made. The recent progress, however, shouldn’t mean a change in direction. When measured as a percentage of their incomes, the amount of state and local taxes that high-income Minnesotans pay is still less than what other Minnesotans pay.

July 2015

Opportunities missed and taken in the 2015 Legislative Session

We take an in-depth look at the FY 2016-17 budget passed in June, particularly measuring how well the tax and budget decisions meet the goals of increasing opportunity and economic well-being for all Minnesotans and ensuring a fair and sustainable tax system. With a surplus of $2 billion, policymakers had the opportunity to make targeted new investments after more than a decade of flat or declining funding in many public services. They took some opportunities, missed some, and lost some.

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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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