MN SF1968

Reduces Minnesota's lowest individual income tax rate from 5.35% to 2.8% for all filing statuses (married joint, single, and head of household)

Increases the income threshold for the first tax bracket by approximately 23% (e.g., married joint filers from $38,770 to $47,620; single filers from $26,520 to $32,570)

Adjusts all other income bracket thresholds proportionally upward while maintaining existing rates of 6.8%, 7.85%, and 9.85% for higher brackets

Changes the statutory base year for inflation adjustments of tax brackets from 2019 to 2025

Effective for taxable years beginning after December 31, 2024 (rate changes) and December 31, 2025 (inflation adjustment provision)