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MN HF3955
Bill
Status
3/5/2026
Primary Sponsor
Aisha Gomez
Click for details
AI Summary
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Qualified tip income becomes a state income tax subtraction, conforming to federal IRC Section 224 deductions, effective retroactively for taxable years beginning after December 31, 2024
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Minnesota child tax credit increases from $1,750 to $2,000 per qualifying child, with inflation adjustments beginning after taxable year 2026
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New fifth individual income tax tier of 10.7% established for income over $1,000,000 (married filing jointly), $600,000 (single filers), and $800,000 (head of household), effective for taxable years beginning after December 31, 2025
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Income tax brackets restructured with adjusted thresholds: for married joint filers, the 5.35% bracket increases from $38,770 to $48,700, and the fourth tier (9.85%) now applies to income between $207,660 and $1,000,000
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One-time 11.9% increase to homestead property tax refunds for claims based on taxes payable in 2026, with funding appropriated from the general fund
Legislative Description
Tax refunds; tip income tax subtraction provided, Minnesota child tax credit expanded, onetime expansion of property tax refunds provided, and new fifth tier individual income tax rate established.
Last Action
Introduction and first reading, referred to Taxes
3/5/2026