Taxes in Minnesota
Every state-level tax in Minnesota, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Minnesota's corporate tax burden is the second-heaviest in the country, trailing only one other state. For businesses weighing a move there, that ranking is the headline: only one state asks more of incorporated profits. The same appetite for revenue shows up at death. Estates above $3,000,000 face a state estate tax reaching 16%, and because that threshold isn't indexed, inflation quietly pulls more families into it each year. A resident or relocator should plan for both ends of this: businesses pay near the top of the national scale, while even modest estates can owe the state if their value creeps past a fixed line that never moves.
State income tax
9.85% 4 brackets · graduated.
Sales tax
The combined state + local sales tax rate is 8.14%. State rate 6.88% plus an average 1.26% local.
Estate & inheritance tax
Minnesota taxes estates over $3,000,000 at a top rate of 16%.
Real estate transfer tax
Minnesota levies a transfer tax of 0.330% — Deed tax.
Cigarette Tax
Minnesota levies a cigarette tax of $3.88 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Minnesota levies a gas tax of 32.70¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Minnesota levies a beer tax of $0.475 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Minnesota levies a wine tax of $1.250 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Minnesota levies a spirits tax of $8.740 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 0.98%. Compare counties below for local rates.
Counties in Minnesota by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Pennington County | 1.26% | $195,500 |
| Ramsey County | 1.21% | $326,600 |
| Steele County | 1.21% | $245,400 |
| Waseca County | 1.18% | $220,800 |
| Carlton County | 1.17% | $245,100 |
| McLeod County | 1.15% | $246,100 |
| Houston County | 1.15% | $239,000 |
| Hennepin County | 1.14% | $392,900 |
| Clay County | 1.14% | $265,500 |
| Kanabec County | 1.13% | $228,100 |
| Nicollet County | 1.13% | $270,300 |
| Freeborn County | 1.11% | $171,100 |
| Dodge County | 1.11% | $287,700 |
| Sibley County | 1.10% | $231,900 |
| Chippewa County | 1.10% | $156,100 |
| Chisago County | 1.07% | $351,900 |
| Le Sueur County | 1.06% | $316,500 |
| Olmsted County | 1.06% | $331,700 |
| Lyon County | 1.06% | $200,700 |
| Wabasha County | 1.05% | $264,400 |
| Cottonwood County | 1.05% | $169,300 |
| Goodhue County | 1.05% | $285,100 |
| Watonwan County | 1.05% | $162,400 |
| Mille Lacs County | 1.04% | $258,300 |
| Wadena County | 1.04% | $173,000 |
| Yellow Medicine County | 1.04% | $154,700 |
| Renville County | 1.04% | $163,200 |
| Brown County | 1.03% | $191,200 |
| Mower County | 1.03% | $185,200 |
| St. Louis County | 1.03% | $221,400 |