This bill proposes amendments to Minnesota Statutes 2024, specifically section 290.06, to reduce individual income tax rates across various categories, including married individuals, unmarried individuals, and heads of household. The bill adjusts the income tax brackets, increasing the thresholds for each rate category. For instance, the first income bracket for married individuals filing jointly is raised from $38,770 to $47,620, with corresponding reductions in tax rates from 5.35% to 5.225%. Similar adjustments are made for other categories, including unmarried individuals and heads of household, with the first bracket also increased to $47,620 and tax rates adjusted accordingly.

Additionally, the bill includes provisions for annual inflation adjustments to the tax brackets, with the statutory year for these adjustments set to 2025. The adjustments will ensure that the minimum and maximum dollar amounts for each rate bracket are rounded to the nearest $10, with specific instructions for handling amounts that end in $5. The effective dates for these changes are set for taxable years beginning after December 31, 2024, for the rate reductions, and after December 31, 2025, for the inflation adjustments.

Statutes affected:
Introduction: 290.06