MN SF2290

Creates a new fifth income tax bracket at 12.45% for taxable income over $500,000 (married filing jointly), $250,000 (single filers), and $400,000 (head of household)

Increases all existing tax bracket thresholds by approximately 23%, for example raising the first bracket ceiling for married joint filers from $38,770 to $47,620

Maintains the existing four tax rates (5.35%, 6.8%, 7.85%, and 9.85%) while capping the fourth bracket at the new fifth bracket thresholds

Resets the base year for inflation adjustments from 2019 to 2025, with future bracket adjustments calculated from this new statutory year

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