The bill proposes amendments to Minnesota Statutes 2022, specifically section 290.06, to reduce individual income tax rates for various categories of taxpayers, including married individuals, unmarried individuals, and heads of household. The amendments include increases in the income thresholds for each tax bracket, with the first bracket for married individuals filing jointly increasing from $38,770 to $43,950, and similar adjustments made for other categories. The tax rates are also slightly reduced, with the first rate changing from 5.35% to 5.225%, and subsequent rates adjusted accordingly. The effective date for these changes is set for taxable years beginning after December 31, 2022.

Additionally, the bill amends subdivision 2d to require annual inflation adjustments to the minimum and maximum dollar amounts for each tax rate bracket, with the adjustments reflecting changes in the rate brackets based on the statutory year of 2023. The adjusted brackets will be rounded to the nearest $10, with specific rounding rules applied. This section will take effect for taxable years beginning after December 31, 2023.

Statutes affected:
Introduction: 290.06