Taxes in Minneapolis, Minnesota
Complete tax guide for Minneapolis, MN. State income tax up to 9.85%, 1.08% property tax, 8.03% sales tax. Calculate your total tax burden.
State Income Tax
9.85%
Minnesota
Property Tax
1.08%
Effective rate
Sales Tax
8.03%
Combined rate
Tax Burden
Very High
Minneapolis, MN Tax Overview
High state income tax (up to 9.85%); no local income tax
Population
429,954
Median Income
$65,117
Cost of Living
105.7 (100 = avg)
State Income Tax
9.85%
Median Home Price
$330,000
Minneapolis Tax Calculator
Pre-filled with Minneapolis median: $65,117
Total Tax Burden in Minneapolis
$17,335
Take-Home: $47,782 · Effective Rate: 26.62%
Federal Tax
$5,940
9.12% eff.
MN State
$6,414
9.85% eff.
FICA
$4,981
7.65% eff.
Take-Home
$47,782
73.38% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,117.00 | $5,426.42 |
| Federal Income Tax | -$5,939.74 | -$494.98 |
| Minnesota State Tax | -$6,414.02 | -$534.50 |
| Social Security (6.2%) | -$4,037.25 | -$336.44 |
| Medicare (1.45%) | -$944.20 | -$78.68 |
| Take-Home Pay | $47,781.79 | $3,981.82 |
Property Tax in Minneapolis
Median Home
$330,000
Annual Tax
$3,564
Monthly Tax
$297
Effective Rate
1.08%
Sales Tax in Minneapolis
Combined Rate
8.03%
State Portion
~5.5%
Local Portion
~2.5%
The combined sales tax rate in Minneapolis is 8.03%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.03 in sales tax.
Tax Burden Comparison
| Tax Type | Minneapolis | Minnesota Avg | National Avg |
|---|---|---|---|
| Income Tax | 9.85% | 9.85% | 4.6% |
| Property Tax | 1.08% | ~1.08% | 1.1% |
| Sales Tax | 8.03% | ~8.03% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Minneapolis Residents
- Minnesota's income tax rate of 9.85% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Property tax in Minneapolis (1.08%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- The combined sales tax rate of 8.03% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Minnesota
Calculate Your Full Minnesota Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Minneapolis, MN?
Minneapolis, Minnesota has a state income tax rate up to 9.85%. The property tax rate is 1.08% and the combined sales tax rate is 8.03%. High state income tax (up to 9.85%); no local income tax
How much is property tax in Minneapolis?
The effective property tax rate in Minneapolis is 1.08%. On the median home price of $330,000, this equals approximately $3,564 per year or $297 per month. This is below the national average of 1.1%.
What is the sales tax rate in Minneapolis?
The combined sales tax rate in Minneapolis is 8.03%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Minneapolis's tax burden compare to other cities?
Minneapolis has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 33.7%. The combination of 9.85% state income tax, 1.08% property tax, and 8.03% sales tax determines the total burden. Cost of living index is 105.7 (100 = national average).
Are there any local taxes in Minneapolis?
Minneapolis does not impose a separate local or city income tax. Residents pay the state income tax of 9.85%, federal income tax, and FICA (Social Security and Medicare). High state income tax (up to 9.85%); no local income tax