Taxes in Minnetonka, Minnesota
Complete tax guide for Minnetonka, MN. State income tax up to 7.85%, 1.16% property tax, 9.1% sales tax. Calculate your total tax burden.
State Income Tax
7.85%
Minnesota
Property Tax
1.16%
Effective rate
Sales Tax
9.1%
Combined rate
Tax Burden
High
Minnetonka, MN Tax Overview
Population
53,781
Median Income
$75,800
Cost of Living
102.1 (100 = avg)
State Income Tax
7.85%
Median Home Price
$334,000
Minnetonka Tax Calculator
Pre-filled with Minnetonka median: $75,800
Total Tax Burden in Minnetonka
$20,039
Take-Home: $55,761 · Effective Rate: 26.44%
Federal Tax
$8,290
10.94% eff.
MN State
$5,950
7.85% eff.
FICA
$5,799
7.65% eff.
Take-Home
$55,761
73.56% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $75,800.00 | $6,316.67 |
| Federal Income Tax | -$8,290.00 | -$690.83 |
| Minnesota State Tax | -$5,950.30 | -$495.86 |
| Social Security (6.2%) | -$4,699.60 | -$391.63 |
| Medicare (1.45%) | -$1,099.10 | -$91.59 |
| Take-Home Pay | $55,761.00 | $4,646.75 |
Property Tax in Minnetonka
Median Home
$334,000
Annual Tax
$3,874
Monthly Tax
$323
Effective Rate
1.16%
Sales Tax in Minnetonka
Combined Rate
9.1%
State Portion
~6.6%
Local Portion
~2.5%
The combined sales tax rate in Minnetonka is 9.1%, which is above the national average of 7.12%. On a $100 purchase, you would pay $9.10 in sales tax.
Tax Burden Comparison
| Tax Type | Minnetonka | Minnesota Avg | National Avg |
|---|---|---|---|
| Income Tax | 7.85% | 7.85% | 4.6% |
| Property Tax | 1.16% | ~1.16% | 1.1% |
| Sales Tax | 9.1% | ~9.1% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Minnetonka Residents
- Minnesota's income tax rate of 7.85% 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 Minnetonka (1.16%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- The combined sales tax rate of 9.1% 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.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Minnetonka, MN?
Minnetonka, Minnesota has a state income tax rate up to 7.85%. The property tax rate is 1.16% and the combined sales tax rate is 9.1%.
How much is property tax in Minnetonka?
The effective property tax rate in Minnetonka is 1.16%. On the median home price of $334,000, this equals approximately $3,874 per year or $323 per month. This is above the national average of 1.1%.
What is the sales tax rate in Minnetonka?
The combined sales tax rate in Minnetonka is 9.1%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Minnetonka's tax burden compare to other cities?
Minnetonka has a high overall tax burden. The effective total tax rate for a median-income household is approximately 31%. The combination of 7.85% state income tax, 1.16% property tax, and 9.1% sales tax determines the total burden. Cost of living index is 102.1 (100 = national average).
Are there any local taxes in Minnetonka?
Minnetonka does not impose a separate local or city income tax. Residents pay the state income tax of 7.85%, federal income tax, and FICA (Social Security and Medicare).