This bill amends Minnesota Statutes 2024, specifically section 290.06, to modify the income tax rates and brackets for individuals, estates, and trusts. The changes include increasing the income thresholds for various tax brackets for married individuals filing jointly, unmarried individuals, and heads of household. For instance, the first bracket for married individuals filing jointly is raised from $38,770 to $47,620, and the top bracket for individuals earning over $250,000 is set at a rate of 12.45 percent. Similar adjustments are made for unmarried individuals and heads of household, with their respective income thresholds also increased.

Additionally, the bill introduces an annual inflation adjustment for the tax brackets, which will be based on the changes in the rate brackets as determined by the commissioner. The statutory year for this adjustment is set to 2025, and the brackets will be rounded to the nearest $10. The effective dates for these changes are specified as being applicable for taxable years beginning after December 31, 2024, for the income tax rate modifications, and after December 31, 2025, for the inflation adjustments.

Statutes affected:
Introduction: 290.06