Minnesota taxes — property, income, sales, retirement

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Property tax, income tax, sales tax, and retirement-income treatment in Minnesota. Quick read for movers, retirees, and remote workers.

Top marginal 9.85% income tax. SS partially taxed (subtraction available). Higher sales/property.

Effective property tax

1.05%

of home value/yr

Income tax (top rate)

9.85%

Sales tax (state)

6.88%

local adds more

SS taxed by state?

Yes

Property tax

Minnesota’s effective property tax rate is approximately 1.05% of assessed home value per year. On a $350,000 home that’s about $3,675/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 9.85%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.88%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Taxed by state. Pensions & 401(k) withdrawals: Fully taxed at state income rate.

Top cities in Minnesota

Minneapolis · pop 428,579 · momentum 59

St. Paul · pop 307,465 · momentum 58

Rochester · pop 123,624 · momentum 68

Bloomington · pop 88,344 · momentum 60

Duluth · pop 87,986 · momentum 73

Brooklyn Park · pop 82,893 · momentum 61

Compare to other states: All 50 state tax overviews · All Minnesota cities · Best Minnesota cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.