MN SF3132

Creates a new fifth income tax bracket at 12.45% for high earners: married joint filers over $500,000, single filers over $250,000, and heads of household over $400,000

Increases all existing income tax bracket thresholds by approximately 23% (e.g., first bracket for married joint filers rises from $38,770 to $47,620)

Caps the current top rate of 9.85% at new upper limits ($500,000 for joint filers, $250,000 for single filers, $400,000 for heads of household) rather than applying to all income above the third bracket

Updates the statutory base year for inflation adjustments from 2019 to 2025

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