MN HF3616

Increases individual income tax bracket thresholds by approximately 25% (e.g., married filing jointly first bracket rises from $38,770 to $48,700) and creates a new fifth tax tier for high earners ($1,667,000+ for joint filers, $1,000,000+ for single filers) with rates to be determined by the Commissioner of Revenue

Adjusts school district compensatory education revenue formula beginning fiscal year 2027 to account for federal SNAP changes, adding a statewide SNAP adjustment factor and establishing minimum funding floors of $838,947,000 (FY2026) and $857,152,000 (FY2027+)

Increases county program aid for 2026 and beyond to offset costs from federal SNAP work requirement changes under Public Law 119-21, including MAXIS system upgrades, allocated proportionally between county need aid and tax-base equalization aid

Requires the Commissioner of Management and Budget to certify by June 30, 2026, estimated costs for SNAP-related changes including lost federal SNAP-Education funding, reduced administrative cost reimbursements, state matching fund requirements, and increased school meal costs

Fifth tier income tax rate will be set at a level estimated to generate revenue in FY2027-2028 equal to the certified costs of SNAP-related adjustments, with this rate remaining in effect for subsequent years