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 similar adjustments are made across all brackets, culminating in a new top rate of 12.45% for incomes over $500,000. The bill also introduces a new structure for unmarried individuals, with the first bracket increasing from $26,520 to $32,570, and a new top bracket for incomes over $250,000.

Additionally, the bill includes provisions for annual inflation adjustments to the tax brackets, which will be based on the changes in the rate brackets as determined by the commissioner. The statutory year for these adjustments is set to 2025, and the brackets will be rounded to the nearest $10. The effective dates for these changes are specified as beginning after December 31, 2024, for the income tax rates and after December 31, 2025, for the inflation adjustments.

Statutes affected:
Introduction: 290.06