Minnesota Updates Income Tax Brackets for 2026

The Minnesota Department of Revenue announced updated individual income tax brackets, standard deduction amounts, and dependent exemption figures for tax year 2026, released on December 16, 2025. The 2026 income tax brackets reflect a 2.369% inflation adjustment from tax year 2025, a change required by law to prevent taxpayers from moving into higher tax brackets solely due to inflation. This adjustment affects income ranges only and does not change Minnesota’s tax rates, which remain at 5.35%, 6.80%, 7.85%, and 9.85%.

These updated brackets apply to tax year 2026, with most taxpayers using them when filing their Minnesota income tax returns in 2027. Taxpayers who make quarterly estimated tax payments should apply the new brackets beginning in April 2026.

Minnesota also released updated standard deduction and dependent exemption amounts for 2026. The standard deduction will be $30,600 for married filing jointly, $15,300 for married filing separately and single filers, and $23,000 for head of household. The dependent exemption amount for 2026 is $5,300.

A full list of inflation-adjusted amounts for tax year 2026 is available on the Minnesota Department of Revenue website by searching “inflation adjustments.”