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 increases the income thresholds for each tax bracket, with the first bracket for married individuals filing jointly raised from $38,770 to $47,620, and similar adjustments made for other categories. The tax rates are also reduced, with the first rate for married individuals filing jointly decreasing from 5.35% to 5.225%, and similar reductions applied to other brackets. Additionally, the bill introduces a new effective date for these changes, stating they will take effect for taxable years beginning after December 31, 2024.

Furthermore, the bill amends subdivision 2d to establish an annual inflation adjustment for the tax brackets, with the statutory year for this adjustment 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 provisions for handling amounts that end in $5. The effective date for this inflation adjustment is also set for taxable years beginning after December 31, 2025. Overall, the bill aims to provide tax relief to individuals and families by lowering tax rates and adjusting brackets to account for inflation.

Statutes affected:
Introduction: 290.06