Cost of New Minnesota Top Income Tax Rate? It Depends.
ST. PAUL (AP) – A narrow band of Minnesotans will pay a higher income tax under the new state budget. How much more? That depends.
Officials say the average cost of the new tax for 54,400 filers is just shy of $7,200. But that figure can be misleading because the super-rich will pay dramatically more than those barely touched by the new rate.
The median tab for those affected is $1,904, according to a Minnesota Department of Revenue analysis. That means half of the people will pay more than that and half will pay less.
The 9.85 percent rate applies to taxable income above $250,000 for married filers and $150,000 for singles. It takes effect for this tax year.
The new top tax rate will put Minnesota’s upper bracket in the nation’s top five.