Minnesota Income Tax Brackets For 2020 Released

MINNESOTA — The Minnesota Department of Revenue announced the adjusted 2020 individual income tax brackets. For tax year 2020, the state’s individual income tax brackets will change by 1.657 percent from tax year 2019.

This annual adjustment will prevent taxpayers from paying taxes at a higher rate solely because of inflationary changes in their income. Indexing for inflation of individual income tax brackets is required by law and first began in 1979.

The brackets are adjusted annually by an inflation factor, rounded to the nearest $10, based on the change in the U.S. Chained Consumer Price Index for all urban consumers. Starting with tax year 2020, the inflation factor will be based on the Chained CPI-U, an alternative measure of inflation.

The adjustment does not change the Minnesota tax rate that applies to each income bracket, according to a news release. The brackets apply to tax year 2020.

Officials say taxpayers who make quarterly payments of estimated tax should use the following rate schedule to determine their payments, which are due starting in April 2020.

2020 Standard Deduction and Dependent Exemption Amounts

For those taking the standard deduction or the dependent exemption at the state level, Minnesota has calculated those amounts for 2020 as follows:

• Married Filing Joint standard deduction - $24,800
• Married Filing Separate standard deduction - $12,400
• Single standard deduction - $12,400
• Head of Household standard deduction - $18,650
• Dependent exemption - $4,300

You can view a full list of inflation-adjusted amounts for tax year 2020 below: