MN SF4264

Eliminates the first tax bracket (zero bracket) for married filing jointly, unmarried individuals, and heads of household, effective for taxable years beginning after December 31, 2023.

Increases income thresholds for remaining tax brackets: married filing jointly brackets increase from $38,770/$154,020/$269,010 to $46,330/$184,040/$321,450; unmarried individuals from $26,520/$87,110/$161,720 to $31,690/$104,090/$193,240; heads of household from $32,650/$131,190/$214,980 to $39,010/$156,760/$256,880.

Maintains existing tax rates of 5.35 percent, 6.8 percent, 7.85 percent, and 9.85 percent across the revised income brackets.

Changes the statutory year for inflation adjustments of tax brackets from 2019 to 2024, effective for taxable years beginning after December 31, 2024.