Minnesota State Income Tax Overview

If you live in Minnesota or have income from a source based in Minnesota, then you need to determine if you must file state income tax for Minnesota.  Even if you file a federal income tax return, Minnesota is one of the many states that has a state income tax that requires the filing of a separate tax return.

Read on to find out basic information about who has to file, filing requirements, and key days related to filing.

Who Has to File?

You may have to file a Minnesota state income tax return whether you lived in Minnesota or not depending on the amount and source of your income.

Minnesota considers a person to be a resident for tax purposes if the person’s permanent home is located in Minnesota or the person lived in Minnesota for at least 183 days.  If you are a resident, you must file a Minnesota state income tax return if your income from all sources exceeds the minimum filing requirement.

If you were a resident of Minnesota for only part of the year or for none of the year, then you need to file a Minnesota state income tax return if your income from Minnesota sources exceeds the minimum filing requirement.

The following table provides a summary of filing requirements:

If you: For tax purposes, you are considered: You must pay Minnesota tax on: Using form(s):
are a permanent resident of Minnesota​ a full-year resident​ all of your income ​
  • Form M1, Minnesota Individual Income Tax Return  ​
moved to or from Minnesota during the year ​

 

a part-year resident​
  • your income from Minnesota sources; and
  • your income from non-Minnesota sources, if received while a resident of Minnesota​
  • Form M1; and
  • Schedule M1NR, Nonresidents/Part-Year Residents​
are a permanent resident in another state but you:

  • met Minnesota’s 183-day rule; and
  • maintained an abode in Minnesota for less than the entire year ​
a part-year resident​
  • your income from Minnesota sources; and
  • your income from non-Minnesota sources, if received while a resident of Minnesota​
  • Form M1; and
  • Schedule M1NR
are a permanent resident in another state but you:

  • met Minnesota’s 183-day rule; and
  • maintained an abode in Minnesota for the entire year​
a part-year resident​ all of your income ​ Form M1, Minnesota Individual Income Tax Return  ​
are a permanent resident in another state and you did not meet Minnesota’s 183-day rule​ a nonresident​ your income from Minnesota sources​
  • Form M1; and
  • Schedule M1NR

Even if your residency and income is not such that you are required to file a state income tax return, you may want to file a return if income was withheld and you want to receive a refund.

What is the Tax Rate?

Minnesota uses a marginal tax rate, which means the tax rate levied on income increases as a person earns more money.  The table below outlines the marginal tax rates used by Minnesota:

Tax Bracket (Single) Tax Bracket (Couple) Marginal Tax Rate
$0+ $0+ 5.35%
$23,100+ $33,770+ 7.05%
$75,891+ $134,170+ 7.95%

When is State Income Tax Due?

Minnesota state income tax is due on the same date as your federal income tax return, which is generally April 15 or the first non-holiday weekday after April 15 when it falls on a weekend.  This means that your state income tax return must be filed by this date and any tax due must be paid by this date.

If you cannot complete your tax return by the due date, you can receive an automatic six-month extension of the filing date.  However, any tax owed must still be paid by the original due date or you will be subject to interest on the unpaid balance and penalties for failing to pay your state income tax.

Where Can I Get Help Preparing my Tax Return?

A tax attorney who has studied and specializes in Minnesota state income tax law can help answer any of your questions and file your return.

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.