MN HF11

Establishes a fifth tier of individual income tax for high-income earners beginning January 1, 2025, with rates determined by the commissioner of revenue based on estimated federal Medicaid funding losses.

Adjusts income tax brackets for married filing jointly ($1,667,000 threshold), unmarried individuals ($1,000,000 threshold), and heads of household ($1,334,000 threshold) to apply the new fifth tier.

Requires the commissioner of management and budget to certify by December 31, 2025, the total net change in federal Medicaid revenues for fiscal years 2026-2027 resulting from executive actions after January 20, 2025, and changes enacted by the 119th Congress.

Sets the fifth tier tax rate to generate revenue equal to the certified federal Medicaid funding loss in fiscal years 2026-2027, with that rate remaining in effect for subsequent years.

Changes the statutory year for income bracket inflation adjustments from 2019 to 2025, while exempting the fifth tier from annual inflation adjustments.