MN SF1770

Reduces all Minnesota individual income tax rates by 1 percentage point across four tax brackets for married filing jointly, unmarried, and head of household filers, effective for taxable years beginning after December 31, 2022.

Lowers the lowest tax bracket from 5.35% to 4.35%, the second bracket from 6.8% to 5.8%, the third bracket from 7.85% to 6.85%, and the highest bracket from 9.85% to 8.85%.

Implements a phased reduction with higher interim rates for taxable years 2023 and 2024 before reaching the full 1-percentage-point reduction in 2025.

Updates income bracket thresholds for inflation adjustments and changes the statutory year for bracket adjustments from taxable year 2019 to taxable year 2023.

Applies changes to Minnesota Statutes section 290.06 regarding tax rate schedules for individuals, estates, and trusts.