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Retirement Savings Credit (Saver's Credit) in Saint Paul, MN 2026

Calculate your retirement savings credit (saver's credit) 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
$2,000
Est. Total Savings
$2,000
Max Deduction
Tax Credit
Deduction Type
29.9%
Combined Tax Rate

Retirement Savings Credit (Saver's Credit) Savings Calculator for Saint Paul

$
$

Federal Savings

$2,000

22% bracket

Minnesota State

$0

7.85% rate

Local Tax

$0

0% rate

Total Savings

$2,000

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

Low-to-moderate income retirement savers

  • 1AGI under $36,500 single/$73,000 married
  • 2Not a student or dependent
  • 3Age 18+

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

  • !Exceeding income limits
  • !Being claimed as dependent
  • !Forgetting to claim the deduction on your Minnesota state return (missing 7.85% additional savings)

Required Tax Forms

Form 8880

File these forms with your federal tax return to claim the retirement savings credit (saver's credit). Minnesota may require additional state-specific forms.

Other Tax Deductions in Saint Paul, MN

Traditional IRA Contribution

Retirement

~$2,090
est. savings

401(k) Contribution

Retirement

~$6,866
est. savings

SEP-IRA Contribution

Retirement

~$20,352
est. savings

Solo 401(k) Contribution

Retirement

~$24,423
est. savings

SIMPLE IRA Contribution

Retirement

~$4,776
est. savings

Roth IRA Conversion Strategy

Retirement

~$6,784
est. savings

Catch-Up Contributions (50+)

Retirement

~$2,239
est. savings

Defined Benefit Pension Plan

Retirement

~$67,841
est. savings

Retirement Savings Credit (Saver's Credit) in Other Minnesota Cities

Minneapolis, MN

9.85% state tax

~$500
-1,500 vs Saint Paul

St. Paul, MN

9.85% state tax

~$500
-1,500 vs Saint Paul

Rochester, MN

9.85% state tax

~$500
-1,500 vs Saint Paul

Duluth, MN

9.85% state tax

~$500
-1,500 vs Saint Paul

Bloomington, MN

9.85% state tax

~$500
-1,500 vs Saint Paul

Brooklyn Park, MN

7.85% state tax

~$500
-1,500 vs Saint Paul

Plymouth, MN

7.85% state tax

~$500
-1,500 vs Saint Paul

Maple Grove, MN

7.85% state tax

~$500
-1,500 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 Retirement Savings Credit (Saver's Credit) Guide

Frequently Asked Questions

How much can I save with the Retirement Savings Credit (Saver's Credit) in Saint Paul, MN?

In Saint Paul, Minnesota, the retirement savings credit (saver's credit) can save you an estimated $2,000 per year. This includes $2,000 in federal tax savings and $0 in Minnesota state tax savings. The national average savings is $500/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 Retirement Savings Credit (Saver's Credit) in Saint Paul?

Low-to-moderate income retirement savers. 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 Retirement Savings Credit (Saver's Credit) in Minnesota?

To claim the retirement savings credit (saver's credit), you need to file Form 8880 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 Retirement Savings Credit (Saver's Credit) 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

Traditional IRA Contribution in Saint Paul

Avg savings: $1,540/year

401(k) Contribution in Saint Paul

Avg savings: $5,060/year

SEP-IRA Contribution in Saint Paul

Avg savings: $15,000/year

Solo 401(k) Contribution in Saint Paul

Avg savings: $18,000/year

SIMPLE IRA Contribution in Saint Paul

Avg savings: $3,520/year

Roth IRA Conversion Strategy in Saint Paul

Avg savings: $5,000/year