State guides · MN

How Minnesota taxes retirement income

Some 2026 figures pending confirmation  Tax year 2026 · research last updated October 3, 2026

At a glance

Tax rates

Brackets apply to Minnesota taxable income. Other filing statuses are in the rules reference.

Social Security

Minnesota taxes some Social Security, depending on age or income.

Subtract the taxable Social Security in federal AGI using the GREATER of two methods (Schedule M1M line 12 worksheet). (1) Simplified method: if federal AGI is at or below the 2026 threshold ($110,780 joint/QSS, $86,410 single/HOH, $55,390 MFS) subtract 100% of taxable SS. Above it, the subtraction is reduced by 10% for each $4,000 ($2,000 MFS) or fraction thereof of AGI over the threshold (ceil((AGI - threshold)/4000) x 10%, max 100%), so it is fully gone at threshold + $40,000 ($20,000 MFS). Thresholds are indexed. (2) Alternative (legacy) method, not indexed: provisional income = (federal AGI - taxable SS) + 50% of total SS + tax-exempt interest - (certain federal adjustments: Schedule 1 line 26 minus line 21); max subtraction $5,840 joint / $4,560 single-HOH / $2,920 MFS, reduced by 20% of provisional income over $88,630 joint / $69,250 single-HOH / $44,315 MFS; limited to taxable SS (less Tier 1 RRB subtracted separately). Railroad Retirement Board benefits are separately fully subtracted (line 17).

Pensions, IRAs and 401(k)s

Roth conversions

A Roth conversion counts as taxable income for Minnesota. Whether a retirement income exclusion can cover part of it depends on the rules above.

Capital gains

Taxed like other income, at the rates above. . Additional 1% net investment income tax on Minnesota net investment income over $1,000,000 (tax years 2024+).

Credits and relief for older residents

• Homestead Credit Refund (Form M1PR, property tax refund). Refund of property tax above a percentage of household income (household income includes nontaxable Social Security). 2025 refund year: max $3,480, not eligible at household income of $142,490+. Senior/disabled homeowners get a higher income threshold in some years. Renter's Credit (on Form M1, 2026 schedule) max $2,780, not eligible at $79,330+.
• Standard deduction limitation (high income). Standard deduction reduced by the lesser of (a) 3% of AGI over $244,400 ($122,200 MFS) up to $337,800 ($168,900 MFS) plus 10% of AGI over $337,800, or (b) 80% of the deduction; for AGI over $1,107,750 the 80% reduction applies. Itemized deductions have the same limitation. (2026 thresholds.)

More detail from our research notes

Minnesota starts from federal AGI but uses its own standard deduction, brackets and additions/subtractions (Minnesota has not adopted the federal standard deduction since 2019). 2026 standard deduction: $30,600 joint/QSS, $23,000 HOH, $15,300 single/MFS; additional for age 65+ (by Dec 31) or blind: $1,600 per qualifying spouse if married/QSS, $2,000 if single/HOH (the age65.extraDeduction field holds the married amount). No personal exemption for taxpayer/spouse; $5,300 per dependent (phased out). Brackets are indexed annually (2026 up 2.369% from 2025). Private pensions, 401(k)/403(b)/457, TSP and IRA distributions and Roth conversions are fully taxable with no general retirement exclusion (only the non-SS-covered public pension subtraction and the low-income 65+ subtraction). Minnesota also has an individual AMT (2026 exemption $97,470 joint / $73,100 single). 2026 law (Laws 2026 ch. 128, HF 2438, art. 1 sec. 4; Minn. Stat. 290.0122 subd. 4): from TY2026 the itemized charitable deduction counts only gifts above 1% of AGI (2026 M1SA lines 18-21), and the non-itemizer subtraction becomes 50% x (gifts - 1% of AGI - $500) (2026 M1M line 13 worksheet). Modeled from 2026 by the charityAGIFloor rule (0.01; 0 in the 2025 rules). The same act conforms to the IRC as amended through May 1, 2026 (OBBBA, selectively); nothing else retiree-relevant changed (rates, standard deduction, Social Security and public pension subtractions, M1R unchanged). 2027 indexed amounts are published by MDOR each December.

Pending confirmation

These points were still being confirmed against Minnesota's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.

1 item

• 2026 tax tables not yet published; worked examples computed from the 2026 rate schedule. Final 2026 forms expected Dec 2026 (drafts dated 10/1/26 already match every 2026 amount used here).

Sources

Every figure comes from these documents, mostly the state's own forms, instructions and statutes.

1. Tax Year 2026 inflation-adjusted amounts: brackets, standard deduction, 65+/blind additional deduction, deduction limitations, SS subtraction thresholds and alternate amounts, public pension subtraction, AMT exemption, renter's credithttps://www.revenue.state.mn.us/sites/default/files/2025-12/inflation-adjusted-amounts-2026.pdf
2. Press release: 2026 brackets and standard deductionhttps://www.revenue.state.mn.us/press-release/2025-12-16/minnesota-income-tax-brackets-standard-deduction-and-dependent-exemption
3. 2025 Schedule M1M and instructions: Social Security subtraction worksheet (simplified 10% per $4,000 and alternative method), M1R and M1QPEN lineshttps://www.revenue.state.mn.us/sites/default/files/2026-07/m1m-25.pdf
4. Social Security benefit subtraction overviewhttps://www.revenue.state.mn.us/social-security-benefit-subtraction
5. Qualified public pension subtractionhttps://www.revenue.state.mn.us/public-pension-subtraction
6. Age 65 or older/disabled subtraction (Schedule M1R)https://www.revenue.state.mn.us/sites/default/files/2024-12/m1r-24.pdf
7. Minn. Stat. 290.0123 standard deduction, aged/blind addition, limitation formulahttps://www.revisor.mn.gov/statutes/cite/290.0123
8. Itemized deductions (group-d, 2026-10-02): 2025 Schedule M1SA lines 1-27 and line 26 Worksheets A/B (medical over 10% of AGI, property tax capped at $10,000 / $5,000 MFS, no income tax, gifts up to 60% of AGI); M1M line 11 worksheet (non-itemizers: 50% of…https://www.revenue.state.mn.us/sites/default/files/2025-12/m1sa-25.pdf
9. 2026 Schedule M1R (final draft 10/1/26): $12,000/$9,600/$6,000 base; AGI limits $33,700/$42,000/$38,500/$21,000; line 10 amounts $14,500/$18,000/$14,500/$9,000https://www.revenue.state.mn.us/sites/default/files/2026-10/m1r-26.pdf
10. 2026 Schedule M1QPEN (final draft 10/1/26): $13,850/$27,690 cap per return; reduced 10% per $2,000 (all statuses) of AGI over $86,410/$110,780/$55,390https://www.revenue.state.mn.us/sites/default/files/2026-10/m1qpen-26.pdf
11. 2026 Schedule M1M (final draft 10/1/26): line 13 charity worksheet with 1% of AGI floor; line 14 Social Security worksheet ($86,410/$110,780/$55,390; $4,000 steps, $2,000 MFS; alternate $69,250/$88,630/$44,315, 20%, $4,560/$5,840/$2,920)https://www.revenue.state.mn.us/sites/default/files/2026-10/m1m-26.pdf
12. 2026 Schedule M1SA (near-final draft 8/4/26): medical over 10% of AGI, property tax cap $10,000/$5,000, charity over 1% of AGI, limitation above $244,400/$122,200https://www.revenue.state.mn.us/sites/default/files/2026-08/m1sa-26_0.pdf
13. Laws 2026 ch. 128 (HF 2438): art. 1 sec. 4 charity 1% floor from TY2026; sec. 21 290.033 1% tax on net investment income over $1,000,000 (OZ adjustment from 2027); sec. 24 290.06 subd. 2c rate schedule unchangedhttps://www.revisor.mn.gov/laws/2026/0/128/

Taxtirement's Minnesota calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.

This page summarizes Minnesota's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.