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SF2010 (Legislative Session 94 (2025-2026))

All individual income tax rates reduction by one percentage point provision

Related bill: HF153

AI Generated Summary

This bill, S.F. No. 2010, proposes to reduce all individual income tax rates in Minnesota by one percentage point. It amends Minnesota Statutes 2024, Section 290.06, subdivisions 2c and 2d to adjust the tax brackets accordingly for different filing statuses, including married individuals filing jointly, unmarried individuals, and heads of households.

Key Provisions:

  • Across-the-board rate reductions: Lowers each tax bracket’s rate by one percentage point.
  • Scheduled adjustments over two years:
    • For tax years beginning after December 31, 2024, and before January 1, 2026, the rates will slightly increase compared to the fully reduced rates.
    • For tax years beginning after December 31, 2025, and before January 1, 2027, the rates remain lower than current levels but slightly higher than the ultimate goal of a full percentage point reduction.

Adjusted Tax Brackets:

For Married Filing Jointly: - Current 5.35% → Reduced to 4.35% - Current 6.8% → Reduced to 5.8% - Current 7.85% → Reduced to 6.85% - Current 9.85% → Reduced to 8.85%

For Unmarried Individuals & Heads of Household: - Proportional reductions in all brackets, similar to those for married filers.

Transitional Adjustments:

  • 2025 Tax Year: Temporary small increases to the reduced rates.
  • 2026 Tax Year: Further gradual adjustments before the final full-rate reduction.

This bill aims to provide broad tax relief by lowering income tax rates for all taxpayers in Minnesota while implementing a phased approach to mitigate budgetary impacts.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading
February 26, 2025SenateFloorActionIntroduction and first reading
February 26, 2025HouseFloorActionReferred toTaxes
February 26, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies individual income tax rates under section 290.06, subdivision 2c.",
      "modified": [
        "All specified individual income tax rates are reduced by one percentage point."
      ]
    },
    "citation": "290.06",
    "subdivision": "subdivision 2c"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill adjusts computations for income tax brackets as outlined in section 290.06, subdivision 2d.",
      "modified": [
        "Adjustments required in the application of tax rates for married individuals filing separately, estates, and trusts."
      ]
    },
    "citation": "290.06",
    "subdivision": "subdivision 2d"
  }
]

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