This bill proposes amendments to Minnesota Statutes 2024, specifically section 290.06, to reduce individual income tax rates across various income brackets. The changes include increasing the income thresholds for each tax rate, with the first bracket for married individuals filing jointly raised from $38,770 to $47,620, and similar adjustments made for unmarried individuals and heads of household. The tax rates themselves are also slightly reduced, with the first rate changing from 5.35% to 5.225%, and subsequent rates adjusted accordingly. The bill aims to provide tax relief to individuals and families by lowering the overall tax burden.

Additionally, the bill includes provisions for annual inflation adjustments to the tax brackets, which will now be based on a statutory year of 2025 instead of 2019. The adjustments will ensure that the minimum and maximum dollar amounts for each rate bracket are updated to reflect inflation, rounded to the nearest $10. The effective dates for these changes are set for taxable years beginning after December 31, 2024, for the tax rate adjustments, and after December 31, 2025, for the inflation adjustments.

Statutes affected:
Introduction: 290.06