MN SF1895

Allows a full subtraction for all federally taxable Social Security income received by Minnesota taxpayers, effective for taxable years beginning after December 31, 2022.

Reduces the first tier income tax rate from 5.35% to 2.8% for married joint filers, single filers, and head of household filers, with corresponding increases to income bracket thresholds, effective for taxable years beginning after December 31, 2022.

Increases homestead property tax refund amounts across all income levels, with maximum refunds rising from $2,770 to $3,830 for most income brackets, effective for property taxes payable in 2024.

Changes the inflation adjustment baseline year for income tax brackets from 2019 to 2023, effective for taxable years beginning after December 31, 2023.

Updates the inflation adjustment baseline year for homestead credit refunds from 2018 to 2023, effective for property taxes payable in 2024.