Does Minnesota Tax Social Security?
Minnesota fully exempts Social Security below indexed AGI limits — $84,490 (single/head of household) and $108,320 (married filing jointly) for tax year 2025 — and phases the subtraction out above them.
Minnesota is one of only 8 states that tax Social Security benefits in 2026.
State Tax Rate
5.35%–9.85%
Who's Exempt
Full subtraction below $84,490 single / $108,320 joint AGI (TY2025, indexed)
Who is exempt from Minnesota's Social Security tax?
Available Exemptions & Deductions
- Full subtraction of federally taxable Social Security when AGI is below the indexed limits: $84,490 (single/head of household), $108,320 (married filing jointly), $54,160 (married filing separately) — TY2025 figures, indexed annually.
- Partial subtraction phases out above the limits — reduced by 10% for each $4,000 of AGI over the threshold ($2,000 for married filing separately).
Key facts about Minnesota and Social Security
Minnesota income tax rates range from 5.35% to 9.85% — among the higher state rates.
A 2023 law expansion means most Minnesota seniors now pay no state tax on Social Security.
The subtraction limits are indexed for inflation, so they rise slightly each tax year.
Tax-smart strategy for Minnesota residents
Minnesota’s phase-out means each extra $4,000 of AGI claws back 10% of the subtraction. Retirees just above the limit often gain more from managing withdrawal order than from any other single move.
Frequently Asked Questions
About Minnesota Social Security tax
The other states that tax Social Security in 2026
Get Your Personalized Minnesota Analysis
Our engine factors in Minnesota's exemptions and thresholds to show your true after-tax Social Security benefit.