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Health Coverage Tax Credit (HCTC) in Saint Paul, MN 2026

Calculate your health coverage tax credit (hctc) tax savings in Saint Paul, Minnesota. With Minnesota's 7.85% state tax rate, your combined savings are higher.

Minnesota Tax Context

State Income Tax
7.85%
Local Income Tax
None
Property Tax Rate
1.12%
Tax Burden
High
$5,000
Est. Total Savings
No Limit
Max Deduction
Tax Credit
Deduction Type
29.9%
Combined Tax Rate

Health Coverage Tax Credit (HCTC) Savings Calculator for Saint Paul

$
$

Federal Savings

$5,000

22% bracket

Minnesota State

$0

7.85% rate

Local Tax

$0

0% rate

Total Savings

$5,000

29.9% combined

Tax credits reduce your tax bill dollar-for-dollar, regardless of your tax bracket.

Savings by Tax Bracket in Saint Paul

10%
$5,000
12%
$5,000
22%
$5,000
24%
$5,000
32%
$5,000
35%
$5,000
37%
$5,000

Includes 7.85% Minnesota state tax on top of federal savings.

Eligibility Requirements

Trade-displaced workers receiving TAA benefits and PBGC pension recipients

  • 1Must receive Trade Adjustment Assistance
  • 2Or be a PBGC pension recipient aged 55-64
  • 3Covers 72.5% of qualified health insurance premiums

Minnesota residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 7.85%.

Common Mistakes to Avoid

  • !Not filing monthly with the IRS for advance payments
  • !Missing open enrollment periods
  • !Not keeping proof of qualifying coverage
  • !Forgetting to claim the deduction on your Minnesota state return (missing 7.85% additional savings)

Required Tax Forms

Form 8885Form 1040

File these forms with your federal tax return to claim the health coverage tax credit (hctc). Minnesota may require additional state-specific forms.

Other Tax Deductions in Saint Paul, MN

Medical & Dental Expenses

Medical

~$4,070
est. savings

Self-Employed Health Insurance

Medical

~$6,784
est. savings

HSA Contribution Deduction

Medical

~$2,442
est. savings

Long-Term Care Insurance

Medical

~$2,714
est. savings

Medical Travel Expenses

Medical

~$1,085
est. savings

Flexible Spending Account (FSA)

Medical

~$1,221
est. savings

Medical Equipment & Devices

Medical

~$2,035
est. savings

Therapy & Counseling

Medical

~$2,714
est. savings

Health Coverage Tax Credit (HCTC) in Other Minnesota Cities

Minneapolis, MN

9.85% state tax

~$3,200
-1,800 vs Saint Paul

St. Paul, MN

9.85% state tax

~$3,200
-1,800 vs Saint Paul

Rochester, MN

9.85% state tax

~$3,200
-1,800 vs Saint Paul

Duluth, MN

9.85% state tax

~$3,200
-1,800 vs Saint Paul

Bloomington, MN

9.85% state tax

~$3,200
-1,800 vs Saint Paul

Brooklyn Park, MN

7.85% state tax

~$3,200
-1,800 vs Saint Paul

Plymouth, MN

7.85% state tax

~$3,200
-1,800 vs Saint Paul

Maple Grove, MN

7.85% state tax

~$3,200
-1,800 vs Saint Paul

Calculate Your Full Tax Savings in Saint Paul

Use our free tax calculators to optimize your entire tax return for Minnesota.

Income Tax CalculatorTaxes in Saint PaulFull Health Coverage Tax Credit (HCTC) Guide

Frequently Asked Questions

How much can I save with the Health Coverage Tax Credit (HCTC) in Saint Paul, MN?

In Saint Paul, Minnesota, the health coverage tax credit (hctc) can save you an estimated $5,000 per year. This includes $5,000 in federal tax savings and $0 in Minnesota state tax savings. The national average savings is $3,200/year.

What is the Minnesota state income tax rate for Saint Paul residents?

Minnesota has a 7.85% state income tax rate. Saint Paul residents have no additional local income tax.

Who qualifies for the Health Coverage Tax Credit (HCTC) in Saint Paul?

Trade-displaced workers receiving TAA benefits and PBGC pension recipients. The eligibility requirements are the same whether you live in Saint Paul or elsewhere in the U.S., as this is a federal tax credit. However, your savings amount will vary based on Minnesota's 7.85% state tax rate.

What tax forms do I need to claim the Health Coverage Tax Credit (HCTC) in Minnesota?

To claim the health coverage tax credit (hctc), you need to file Form 8885 and Form 1040 with your federal return. Minnesota residents should also check if the state allows this deduction on their state return, which could provide an additional 7.85% savings. Filing status affects your deduction limits and tax bracket.

Is the Health Coverage Tax Credit (HCTC) better in Saint Paul than in states without income tax?

Yes, Saint Paul residents benefit more because Minnesota's 7.85% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 29.9% means more savings per dollar deducted.

Related Calculators

Medical & Dental Expenses in Saint Paul

Avg savings: $3,000/year

Self-Employed Health Insurance in Saint Paul

Avg savings: $5,000/year

HSA Contribution Deduction in Saint Paul

Avg savings: $1,800/year

Long-Term Care Insurance in Saint Paul

Avg savings: $2,000/year

Medical Travel Expenses in Saint Paul

Avg savings: $800/year

Flexible Spending Account (FSA) in Saint Paul

Avg savings: $900/year