Does Minnesota Tax Social Security?
Short answer: yes, but many retirees pay nothing
Minnesota taxes the Social Security income that’s taxable at the federal level, but offers a state subtraction that fully exempts most retirees.
Joint filers are fully exempt below $108,320 of adjusted gross income, single and head-of-household filers below $84,490, and married-filing-separately filers below $54,160. Above those thresholds, the subtraction phases out by 10% for every $4,000 of additional AGI ($2,000 for separate filers).
- Whether you owe depends on your adjusted gross income and filing status, not just on living in Minnesota
- Most low- and middle-income retirees in Minnesota end up owing little or nothing on their Social Security specifically
- These thresholds are current for 2026 and are set by Minnesota law, which can change — verify before relying on any specific number, including this one
Other retirement income isn’t exempt
Social Security is partly exempt for many filers, but other retirement income generally isn’t. Pensions, 401(k) and IRA distributions, and investment income are subject to Minnesota’s state income tax like any other income.
Minnesota’s income tax rate
Minnesota has a graduated income tax with rates from 5.35% to 9.85%. Because state tax rates and brackets change from year to year, check the Tax Foundation’s current state income tax data before relying on any specific number, including this one.
Does Minnesota tax Social Security benefits?
What is Minnesota's income tax rate?
Minnesota has a graduated income tax with rates from 5.35% to 9.85%, which is the rate that applies once your Social Security income crosses the exemption thresholds described above.
Is other retirement income like pensions and 401(k) withdrawals taxed in Minnesota?
Generally yes — Minnesota taxes pensions, 401(k) and IRA distributions, and investment income at its regular state income tax rate, separately from the Social Security-specific rules above.
Where can I verify current Minnesota tax rules?
The figures above are sourced from Kiplinger’s state-by-state Social Security tax tracker, current as of 2026. For income tax rates generally, the Tax Foundation publishes current state-by-state data. Thresholds and rates change from year to year, so confirm current numbers before making a decision based on them.
Beyond taxes
Taxes are one factor in a retirement location decision, not the whole picture. Healthcare access, cost of living, climate, and proximity to family typically matter as much or more. If Minnesota otherwise fits what you’re looking for, its tax treatment of Social Security is worth weighing carefully alongside its income thresholds — just don’t let it be the only factor you weigh, and talk to a tax advisor about how your specific retirement income will be taxed.
This article is for educational purposes only and isn't legal, financial, or tax advice. See our Disclaimer for details.
