Minnesota Taxes, Wages and Living Costs (2026)

Minnesota has a top income tax rate of 9.85%, the 15th highest combined sales tax (8.14%) and a $11.41 minimum wage as of 2026.

State income tax
9.85%
Top rate, graduated
Combined sales tax
8.14%
6.88% state + 1.26% avg. local
Minimum wage
$11.41
State rate, July 1, 2026
Property tax
1.00%
Effective rate on home value
Electricity
17.45¢/kWh
Residential average, July 2026

What It Adds Up To

$10,496 a year: that is roughly what a Minnesota homeowner earning $75,000 pays in state income tax ($3,577), sales tax on $25,000 of purchases ($2,035), property tax on a $300,000 house ($3,000) and electricity at 900 kWh a month ($1,885).

Minnesota Income Tax in 2026

Minnesota uses a graduated scale with 4 rates, topping out at 9.85%. Single filers' standard deduction: $15,300. On $50,000 of wages, a single filer's Minnesota tax works out to about $1,877 (3.8% of wages); on $100,000 it is about $5,277 (5.3%). Source: Tax Foundation, January 1, 2026.

RateSingle filersMarried filing jointly
5.35%over $0over $0
6.8%over $33,310over $48,700
7.85%over $109,430over $193,480
9.85%over $203,150over $337,930

Take-Home Pay in Minnesota

Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Minnesota's brackets above. Open the paycheck calculator set to Minnesota to add a 401(k), change pay frequency or filing status.

SalaryFederal taxFICAState taxTake-home (year)Per biweekly check
$50,000$3,820$3,825$1,877$40,478$1,557
$75,000$7,670$5,738$3,577$58,016$2,231
$100,000$13,170$7,650$5,277$73,903$2,842

Sales Tax

The state rate is 6.88% and local governments add 1.26% on average, for a combined 8.14%, 15th highest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $81 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.

Minimum Wage

The Minnesota minimum wage is $11.41 an hour, 27th highest in the country, or $23,733 a year for full-time work, $8,653 more than the federal $7.25. Source: U.S. Department of Labor, July 1, 2026.

Property Tax

Homeowners in Minnesota paid property taxes equal to 1.00% of home value on average, the 16th highest effective rate (median state 0.79%). On a $300,000 home that is about $3,000 a year, or $250 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.

Electricity Prices

Residential electricity averaged 17.45¢ per kWh in July 2026, the 21st highest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $157 before fixed charges. Source: U.S. EIA, July 2026 data.

Minnesota Compared with Its Neighbors

Among the 4 states it borders, Minnesota has the highest combined sales tax of its neighbors (8.14%) and the highest top income tax rate of its neighbors (9.85%).

StateTop income taxSales taxMin. wageProperty taxElectricity
Minnesota9.85%8.14%$11.411.00%17.45¢
Iowa3.8%6.94%$7.251.33%15.99¢
North Dakota2.5%7.09%$7.250.92%13.41¢
South DakotaNone6.11%$11.851.00%15.37¢
Wisconsin7.65%5.72%$7.251.32%19.06¢

Minnesota figures use statewide averages and skip credits, exemptions and local income taxes; check Minnesota revenue and labor department sites before filing or hiring.

💰 Finance Calculators
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Minnesota Income Tax Calculator
Federal 2026 tax plus 9.85% top Minnesota rate
Minnesota specific
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State Tax Calculator
Minnesota brackets, top rate 9.85%
2026 rates
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Mortgage Calculator
Payment plus Minnesota property tax at 1.00%
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Home Affordability Calculator
Budget with 1.00% property tax
📊
Property Tax Calculator
Minnesota effective rate: 1.00%
💼
Salary Converter
Hourly to annual; Minnesota minimum $11.41
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Expungement Eligibility — MN
Check eligibility for record expungement under Minnesota law.
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