The bill amends Minnesota Statutes 2022, specifically section 290.06, to modify the income tax rate brackets for individuals, estates, and trusts. The changes include increasing the starting point for the fourth tier income tax rate for married individuals filing jointly from $154,020 to $174,610, and for unmarried individuals from $87,110 to $98,760. Additionally, the starting point for the fourth tier for head of household filers is raised from $131,190 to $148,730. The bill also adjusts the income tax brackets for married individuals filing separately, unmarried individuals, and head of household filers, with similar increases in the thresholds.

Furthermore, the bill includes provisions for annual inflation adjustments to the tax brackets, which will be rounded to the nearest $10. The effective date for these changes is set for taxable years beginning after December 31, 2022. The adjustments aim to reflect changes in income levels and ensure that tax rates remain equitable over time.

Statutes affected:
Introduction: 290.06