Retirement taxes by state
How Minnesota taxes retirement income in 2026
Minnesota's income tax rates run from 5.35% to 9.85%. Here's how Minnesota treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays about $867 in Minnesota income tax.
Updated October 2026 · 2026 tax year
Minnesota at a glance
- Income tax from 5.35% to 9.85%.
- Social Security is exempt with income up to $86,410 ($110,780 joint), fully taxed from $126,410 ($150,780 joint).
- Extra $2,000 ($1,600 if married) deduction per person from age 65.
Minnesota retirement tax questions
Does Minnesota tax Social Security?
Social Security is exempt with income up to $86,410 ($110,780 joint), fully taxed from $126,410 ($150,780 joint).
Does Minnesota tax 401(k) and IRA withdrawals?
Yes, at the state's regular income tax rates. Minnesota has no special exclusion for retirement-account withdrawals. Also: extra $2,000 ($1,600 if married) deduction per person from age 65.
Does Minnesota tax pensions?
Yes, at the state's regular income tax rates. Minnesota has no special pension exclusion.
Does Minnesota tax Roth conversions?
Yes. A Roth conversion counts as income in Minnesota in the year you convert, taxed at the state's regular rates. Qualified Roth withdrawals later aren't taxed.
What is Minnesota's income tax rate in 2026?
Minnesota's income tax rates run from 5.35% to 9.85%.
What retirees actually pay in Minnesota: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. For the retired couple, Minnesota ranks 42nd lowest of the 50 states and DC.
| Household | Total income | Minnesota tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $867 | 0.9% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $1,214 | 1.7% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $2,653 | 3.3% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Minnesota income tax brackets (2026)
Rates apply to Minnesota taxable income, after the state's deductions and the retirement breaks above. Brackets are adjusted for inflation each year.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $33,310 | 5.35% | Up to $48,700 | 5.35% |
| $33,310 – $109,430 | 6.8% | $48,700 – $193,480 | 6.8% |
| $109,430 – $203,150 | 7.85% | $193,480 – $337,930 | 7.85% |
| Over $203,150 | 9.85% | Over $337,930 | 9.85% |
Details and limits
Social Security fully subtracted below the 2026 thresholds, losing 10% per $4,000 above. The public-pension subtraction and 1% surtax on investment income over $1M aren't modelled.
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.